Nov 18, 2009

Biorem Announces Record Third Quarter With $520,000 in Net Earnings

Company says strong performance in 2009 to fuel future growth

Biorem, Inc., announced its results for the three- and nine-month periods ended Sept. 30, 2009.

“We are excited to report a strong quarter, with record gross profit and net earnings,” said Peter Bruijns, president and CEO. “Our results for 2009 year-to-date have now exceeded our fiscal 2008 results for those areas. We are
especially pleased to report that this marks our third consecutive quarter of positive cash flow generation, and the highest net income the company has earned in one quarter over the last five years. We believe that our solid
performance in 2009 thus far creates a strong foundation for the future growth of our company and provides the flexibility to advance our growth initiatives, which include potential acquisitions.”

Revenue in the three-month period ended Sept. 30, 2009, increased 20% to $4,910,000, from $4,105,000 over the comparative period in the prior year. New orders for the quarter totaled $4,588,000, resulting in a current order backlog of $10.4 million. The backlog is down $2.8 million or 21% from Sept. 30, 2008.

In relation to the second quarter of 2009, the backlog decreased by $0.8 million or 7%.

Gross profit in Q3 2009 increased 34% to $2,348,000 from $1,753,000 in Q3 2008. The company said it achieved a strong gross margin percentage in the third quarter of 2009, which is in line with the company’s target annual level of 40%.

Net income for the third quarter of 2009 increased 261% to $520,000, or $0.04 per basic and diluted share, from $144,000, or $0.01 per basic and diluted share in the third quarter of 2008.