microHelix Announces Third Quarter 2005 Financial Results


TUALATIN, Ore., Nov. 21, 2005 (PRIMEZONE) -- microHelix, Inc. (OTCBB:MHLX), a manufacturer of custom cable assemblies and mechanical assemblies for the medical, commercial and defense markets, today announced its financial results for the third quarter ended September 30, 2005.

The Company reported its first ever quarterly net profit since its initial public offering in November 2001. For the quarter ended September 30, 2005, the company reported a net profit of $9,730, or $.00 per share. After accruing for preferred shareholder dividends of $84,375 (which have not been declared or paid), the Company reported a net loss of $74,645, or $(.03) per share for the quarter ended September 30, 2005. For the quarter ended September 30, 2004, the Company reported a net loss of $97,993, or $(.06) per share.

Revenues were $2,853,555 for the quarter ended September 30, 2005, an increase of $2,438,928 compared to $414,627 for the same quarter in 2004. This revenue increase was primarily due to the acquisition of Moore Electronics, Inc. in April 2005.

Revenues for the nine months ended September 30, 2005 were $5,715,834, an increase of $4,831,995 compared to revenues of $883,839 for the first nine months of 2004. The Company reported a net loss of $1,016,141, or $(.50) per share for the first nine months of 2005 compared to net loss of $1,223,984, or $(.73) per share for the same period in 2004.

Ty Pettit, President and Chief Executive Officer, commented, "We are obviously very pleased to be able to report our first quarterly net profit. The acquisition of Moore Electronics provided us with critical mass in a number of areas including a greatly expanded customer base, a source of repetitive business, additional manufacturing capacity and infrastructure that significantly improves our core cash flow. Both our Moore Electronics Division in Portland, Oregon and our Ultrasound Division in Tucson, Arizona and Nogales, Mexico are performing well. We remain focused on building revenues and profitability while managing our costs consistent with our sales growth."

Jim Williams, Chairman of the Board of Directors, continued, "This quarter's encouraging results represent an important milestone for microHelix and a very significant accomplishment by the management team. These results are a reflection of the commitment that the Board and management team have made to the success of microHelix. The Board remains dedicated to the long term growth of the company. We will continue to evaluate both internal and external opportunities to build our business while maintaining our commitment to providing exceptional service to existing and new customers."

Statements in this press release other than statements of historical fact are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current views and estimates of future economic and market circumstances, industry conditions, company performance and financial results. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are subject to risks and uncertainties that could cause the Company's actual future results to differ materially from the results discussed herein. Factors that could cause or contribute to such differences include, but are not limited to, competition from existing or new products, production delays, lack of market acceptance of the Company's products, general economic conditions and such other risks and factors as are described from time to time in the Company's Securities and Exchange Commission filings. The forward-looking statements made today speak only as of today and the Company does not undertake any obligation to update any such statements to reflect events or circumstances occurring after today.



                           MICROHELIX, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEET
                              (UNAUDITED)
                          SEPTEMBER 30, 2005

 Assets

 Current Assets:
 Cash                                                      $   121,282
 Accounts receivable, net of allowance of $74,551            1,038,812
 Inventories, net of reserves                                1,256,103
 Prepaid expenses and other current assets                      74,503
                                                           -----------
 Total current assets                                        2,490,700

 Property and equipment - net                                  973,148
 Intangible assets - net                                       620,733
 Goodwill                                                    1,620,218
                                                           -----------

 Total assets                                              $ 5,704,799
                                                           -----------

 Liabilities and Shareholders' Equity

 Current Liabilities:

 Accounts payable                                          $ 1,264,510
 Accounts payable-related parties                               63,947
 Accrued liabilities                                           528,027
 Accrued dividends                                             168,750
 Line of credit                                                760,982
 Obligations under capital leases                               10,193
 Notes payable to shareholders                                 479,261
 Customer deposits                                             156,969
                                                           -----------
 Total current liabilities                                   3,432,639
                                                           -----------

 Long-Term Liabilities:

 Obligations under capital lease, less current maturities       10,821
 Deferred tax liability                                        534,104
 Notes payable to shareholders, less current maturities        870,739
                                                           -----------
 Total long-term liabilities                                 1,415,664
                                                           -----------
 Total liabilities                                           4,848,303
                                                           -----------

 Shareholders' Equity:

 Preferred Stock, no par value, 5,000,000 shares
  authorized,  2,250,000 issued and outstanding              1,975,793
 Common stock, no par value, 25,000,000 shares
  authorized, 2,116,246 issued and outstanding              14,505,264
 Additional paid-in capital                                  6,318,667
 Accumulated deficit                                       (21,943,228)
                                                           -----------
 Total shareholders' equity                                    856,496
                                                           -----------
 Total liabilities and shareholders' equity                $ 5,704,799
                                                           -----------
                           MICROHELIX, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

                        Three Months Ended       Nine Months Ended
                           September 30            September 30
                      ----------------------  ------------------------
                         2005        2004        2005          2004
                      ----------  ----------  -----------  -----------
                                  (restated)                (restated)

 Sales                $2,853,555  $  414,627  $ 5,715,834  $   883,839
 Cost of sales         2,294,342     337,028    4,952,618    1,097,716
                      ----------  ----------  -----------  -----------
   Gross profit (loss)   559,213      77,599      763,216     (213,877)
                      ----------  ----------  -----------  -----------
 Operating Expenses:
  Research and
   development                --         671           --       63,618
  Sales and marketing    163,083      (4,410)     305,959       25,987
  General and
   administrative        347,354     179,497    1,313,810      681,973
  Amortization of
   intangibles            50,769          --      106,549           --
                      ----------  ----------  -----------  -----------
   Total operating
    expenses             561,206     175,758    1,726,318      771,578
                      ----------  ----------  -----------  -----------
 Loss from operations     (1,993)    (98,159)    (963,102)    (985,455)
                      ----------  ----------  -----------  -----------
 Other income (expense):
  Interest and other
   income                     --       7,927          450       37,348
  Interest expense       (69,351)     (4,073)    (134,563)     (19,496)
                      ----------  ----------  -----------  -----------
  Loss on sale
   of assets                  --      (3,688)          --       (3,688)
                      ----------  ----------  -----------  -----------
  Other income
   (expense) - net       (69,351)        166     (134,113)      14,164
                      ----------  ----------  -----------  -----------

 Loss from continuing
  operations             (71,344)    (97,993)  (1,097,215)    (971,291)

 Discontinued operations:
  Income (loss) from
   operations of wire
   and cable division         --          --           --     (122,877)
  Loss on sale of wire
   and cable division         --          --           --     (129,816)
                      ----------  ----------  -----------  -----------
 Provision (Benefit)
  for Income Taxes       (81,074)         --      (81,074)          --
                      ----------  ----------  -----------  -----------
 Net Profit (loss)         9,730     (97,993)  (1,016,141)  (1,223,984)
 Preferred Dividends     (84,375)         --     (168,750)          --
                      ----------  ----------  -----------  -----------
 Net loss available
  to common
  shareholders        $  (74,645) $  (97,993) $(1,184,891) $(1,223,984)
                      ----------  ----------  -----------  -----------
 Net loss per share
  available to common
  shareholders - basic
  and diluted:
    Net loss per share
     from continuing
     operations       $     (.03) $     (.06) $      (.54) $      (.57)
    Net loss per share
     from discontinued
     operations               --          --           --         (.16)
                      ----------  ----------  -----------  -----------
 Net profit (loss)    $      .00  $     (.06) $      (.50) $      (.73)

 Weighted average
  number of shares
  outstanding
  - Basic and Diluted  2,091,121   1,774,442    2,036,896    1,712,685


            

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