DALLAS, Nov. 9, 2010 (GLOBE NEWSWIRE) -- PMFG, Inc. (the "Company") (Nasdaq:PMFG) today reported financial results for the first quarter ended October 2, 2010.

First Quarter Fiscal Year 2011 Compared to First Quarter Fiscal Year 2010

Revenues were $27.0 million, a decrease of $4.3 million, or 13.7%, compared to revenues of $31.3 million. 

Gross profit was $8.7 million, or 32.4% of revenues, a decrease of $3.1 million, compared to $11.8 million, or 37.6% of revenues. 

Operating expenses were $8.8 million, consisting of $2.7 million sales and marketing, $1.9 million engineering and project management, and $4.2 million in general and administrative expenses, compared to operating expenses of $8.8 million, consisting of $3.0 million sales and marketing, $1.9 million engineering and project management, and $3.9 million in general and administrative expenses.

Operating income (loss) was ($0.0) million, or 0.0% of revenues, a decrease of $3.0 million, compared to $3.0 million operating income, or 9.5% of revenues.

Other income (expense) was ($6.2) million, consisting of a ($5.4) million loss on the fair value adjustment to embedded derivative liabilities, ($0.9) million net interest expense, and $0.1 million foreign exchange gain, compared to ($4.8) million, consisting of ($2.5) million loss on the fair value adjustment to embedded derivative liabilities, ($1.2) million net interest expense, ($1.3) million loss on the extinguishment of debt, and $0.2 million foreign exchange gain.

Income tax benefit (expense) was $0.3 million on $6.3 million of pre-tax loss, compared to income tax expense of ($0.3) million on $1.8 million of pre-tax loss.

Net loss attributable to PMFG, Inc. common stockholders was $6.4 million, or $0.43 per diluted share, an increase of $4.2 million, or $0.27 per diluted share, compared to net loss of $2.1 million, or $0.16 per diluted share.

In the first quarter of fiscal year 2010, the Company recorded an embedded derivative liability for the redemption options and conversion rights associated with the issuance on September 4, 2009 of its Series A Convertible Preferred Stock and warrants. In the first quarter of fiscal year 2011, the Company recorded a loss of $5.4 million related to the fair value adjustment to the derivative liability.