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8-K - CURRENT REPORT - Pharma-Bio Serv, Inc. | pbsv_8k.htm |
Exhibit 99.1
Pharma-Bio Serv Announces Results for the Quarter Ended July 31,
2017
September 14, 2017
DORADO, PUERTO RICO / September 14, 2017 / Pharma-Bio Serv, Inc. ("Pharma-Bio Serv" or the
"Company") (OTCQB: PBSV), a compliance, project management and
technology transfer support consulting firm that provides services
to the pharmaceutical, biotechnology, chemical, medical device,
cosmetic, food and allied products industries, today
announced net revenues for the three and nine months ended July 31,
2017 were $4.0 and $11.9
million, respectively, a decrease of approximately $0.9 and $2.9
million, or 18.2% and 19.8%, respectively, when compared to the
same periods last year. The decline for the three months ended July
31, 2017, when compared to the same period last year, is mainly
attributable to a decline in projects in the Puerto Rico consulting
market of $0.9 million. Other Company divisions sustained minor
revenue gains/losses or remained constant, when compared to the
same period last year.
Selling, general and administrative expenses for the three and nine
months ended July 31, 2017 were approximately $1.1 and $3.9
million, a decrease of approximately $0.4 million for each period,
respectively. The Company net investments for business development
positions for the three and nine months ended July 31, 2017 were
approximately $33,000 and $0.2 million more than the same period
last year, respectively, these expenses were offset by net savings
on other operational support expenses in the aggregate amount of
$0.5 and $0.6 million, respectively.
For the three and nine months ended July 31, 2017, we incurred a
net loss of approximately $0.2 and $0.9 million, respectively, a
decrease of $33,000 when compared to last year three months ended
July 31, and a decrease in earnings of $1.1 million when compared
to last year nine months ended July 31. The variance is mainly
attributable to the decline in revenue and gross margin, and net
investment on business development, partially offset by savings in
other operational support expenses.
For the three and nine months ended July 31, 2017, loss per common
share for both basic and diluted were $0.007 and $0.038,
respectively, a common share basic and diluted decrease of $0.001
and $ 0.049 when compared to the same periods last year,
respectively. The variance is mainly attributable to the decrease
in net earnings when compared to the same periods last
year.
"Our strategic re-alignment and investment is ongoing and our goals
are to achieve long-term profitability on our non-performing
operations.” said Victor Sanchez, CEO of Pharma-Bio Serv.
“To that end Europe is a focus for our attention, we have
also refocused our US consulting services strategy with a more
streamlined business development approach, which has resulted in
operational expense savings during the second and third quarters of
the current fiscal year with the closing of our Plymouth Meeting,
PA and Los Angeles, CA leased offices. We also experienced
unusually long holiday season shutdowns of various Puerto Rico
customer plants during the current fiscal year, with less favorable
project margins. We remain confident that our continued investment
in our consulting team, new markets and services, Lab facilities
and equipment will yield continued and sustainable growth for the
Company in the future. We remain fully focused on consulting
business development in both existing and new markets, expanding
the scope of our Puerto Rico Lab facilities, and developing our new
Lab facility in Spain,” he added.
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About Pharma-Bio Serv, Inc.
Pharma-Bio Serv is a compliance, project management and technology
transfer support consulting firm, headquartered in Puerto Rico,
with operations in the U.S., Ireland, and Spain. Pharma-Bio Serv's
core business is FDA and other international regulatory compliance
agency related services, with integrated portfolio services
including microbiological and chemical testing services for clients
in the Pharmaceutical, Biotechnology, Chemical, Medical Device,
Cosmetic, Food and Allied Products industries. The Company's
services also include "Pharma Serv Academy," a division that
provides technical and regulatory standards seminars/training
conducted by industry experts. The Company's global team includes
leading engineering and life science professionals, quality
assurance managers and directors.
Forward-Looking Statements
This news release contains "forward-looking statements" within the
meaning of the U.S. federal securities laws, which statements may
include information regarding the plans, intentions, expectations,
future financial performance, or future operating performance of
Pharma-Bio Serv. Forward-looking statements are based on the
expectations, estimates, or projections of management as of the
date of this news release. Although Pharma-Bio Serv's management
believes these expectations, estimates, or projections to be
reasonable as of the date of this news release, forward-looking
statements are inherently subject to significant business risks,
economic and competitive uncertainties, or other contingencies,
which could cause its actual results or performance to differ
materially from what may be expressed or implied in the
forward-looking statements. There can be no assurance that the
processes being undertaken by Pharma-Bio Serv will result in growth
through business development or mergers and acquisitions. Important
factors that could cause Pharma-Bio Serv's actual results or
performance to differ materially from the forward-looking
statements include those set forth in the "Risk Factors" section of
Pharma-Bio Serv's Annual Report on Form 10-K for the year ended
October 31, 2016, and in its other filings with the Securities and
Exchange Commission, which filings are available on
www.sec.gov. Pharma-Bio Serv disclaims any intention or
obligation to update or revise any forward-looking statements to
reflect subsequent events and circumstances, except to the extent
required by applicable law.
Company Contact:
Pedro
J. Lasanta
Chief
Financial Officer
787 278
2709
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