IBEX Technologies Reports Its First Quarter Fiscal 2011 Results
MONTREAL, QUEBEC--(Marketwire - December 15, 2010) - IBEX Technologies Inc. (TSX VENTURE: IBT), today reported its financial results for the first quarter ended October 31, 2010.
FINANCIAL RESULTS FOR THE FIRST QUARTER OF FISCAL 2011
Sales for the quarter ended October 31, 2010 totaled $512,975, a decrease of 21% as compared to $646,656 in the same period of the prior year. This net decrease of $133,681 is mainly due to the weakness of the US dollar ($55,566) and to a downturn in volume ($78,115), all of which can be accounted for by one customer who had overestimated demand in 2010.
Excluding foreign exchange impact, expenses for the first quarter ended October 31, 2010 have increased by $125,110 to $690,863. This increase is attributable to several factors such as new R&D projects, a non-cash expense related to stock based compensation and other operational costs.
The net loss was $177,888 compared to net earnings of $71,877 for the same period year ago. The decrease in net earnings is mainly due, as mentioned above, to lower sales and the strengthening of the Canadian dollar versus the US dollar (which negatively impacts the sales when converted into Canadian currency), and to an increase in operating expenses.
Cash, cash equivalents, and marketable securities decreased 6% during the quarter to $2,853,555 from $3,033,556. The Company's working capital was $3,007,680 as at the end of the first quarter ended October 31, 2010 down from $3,278,875 as at the end of the prior quarter ending July 31, 2010. This decrease is due to a decrease in accounts receivable (due to lower sales).
"These results are consistent with previous guidance" said Paul Baehr, IBEX President and CEO. "We expect to see softness in our business environment through the balance of Fiscal 2011, before recovering in Fiscal 2012."
Financial Summary for the quarters ending
October 31, 2010 October 31, 2009
Revenues $512,975 $646,656
(Loss) Earning Before Interests, Tax,
Depreciation & Amortization ($144,476) $103,350
Depreciation & Amortization $35,324 $32,708
Net (Loss) Earnings ($177,888) $71,877
(Loss) Profit per Share ($0.01) $0.00
Cash, Cash Equivalents & Marketable
Securities $2,853,555 $2,661,569
Working Capital $3,007,680 $2,930,953
Outstanding shares at report date (Common
Shares) 24,703,244 24,703,244
LOOKING FORWARD
Fiscal 2011 looks to be a difficult year for IBEX's major US customers, and therefore for IBEX. Additionally, the Canadian dollar is forecast to remain strong against the US dollar, which does not work in our favour. We therefore do not expect to have positive net earnings in Fiscal 2011, but expect to return to profitability in Fiscal 2012, as the US economy improves.
Despite a difficult outlook for Fiscal 2011 we will continue to invest in the future. IBEX is adding additional manufacturing capacity, and will continue with the development of our improved immuno-assays, which are scheduled for introduction in calendar 2011, with financial benefits accruing in Fiscal 2012.
ABOUT IBEX
The Company manufactures and markets a series of proprietary enzymes (heparinases and chondroitinases). These enzymes are used in pharmaceutical research, quality assurance, and in the case of Heparinase I, in diagnostic devices which measure hemostasis in patients.
IBEX also manufactures and markets a series of arthritis assays which are widely used in pharmaceutical research. These assays enable the measurement of both the synthesis and degradation of cartilage components, and are powerful tools in the study of osteo- and rheumatoid arthritis.
For more information, please visit the Company's web site at www.ibex.ca.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Safe Harbor Statement
All of the statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown. Some examples of known risks are: the impact of general economic conditions, general conditions in the pharmaceutical industry, changes in the regulatory environment in the jurisdictions in which IBEX does business, stock market volatility, fluctuations in costs, and changes to the competitive environment due to consolidation or otherwise. Consequently, actual future results may differ materially from the anticipated results expressed in the forward- looking statements. IBEX disclaims any intention or obligation to update these statements.
CONSOLIDATED BALANCE SHEETS
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UNAUDITED October 31, 2010 July 31, 2010
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$ $
ASSETS
Current assets
Cash and cash equivalents 2,153,555 2,333,556
Martketable securities 300,000 300,000
Accounts receivable 364,977 422,761
Inventories 211,995 226,364
Prepaid expenses 39,916 68,236
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Sub-total current assets 3,070,443 3,350,917
Long term deposit 8,650 8,650
Martketable securities 400,000 400,000
Property and equipment 880,396 760,384
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Total assets 4,359,489 4,519,951
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LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 462,763 472,042
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Total liabilities 462,763 472,042
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SHAREHOLDERS' EQUITY
Capital stock 52,660,078 52,660,078
Contributed surplus 549,465 522,760
Deficit (49,312,817) (49,134,929)
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Total shareholders' equity 3,896,726 4,047,909
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Total liabilities and shareholders'
equity 4,359,489 4,519,951
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CONSOLIDATED STATEMENTS OF DEFICIT October 31, 2010 October 31, 2009
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$ $
Balance - Beginning of period (49 134 929) (49,641,291)
Net (loss) profit for the period (177,888) 71,877
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Balance - End of period (49,312,817) (49,569,414)
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CONSOLIDATED STATEMENTS OF (LOSS)
EARNING AND COMPREHENSIVE INCOME
UNAUDITED
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For the three months ended October 31st 2010 2009
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$ $
Revenue 512,975 646,656
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Operating expenses
Research and Development expenditures (56,774) -
Selling, general and administrative
expenses and cost of goods sold (562,212) (495,125)
Amortization of property and equipment (35,324) (32,768)
Other interest and bank charges (2,779) (3,468)
Foreign exchange (loss) gain (35,686) (44,712)
Investment income 1,912 1,294
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Total operating expenses (690,863) (574,779)
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Net (loss) profit and other
comprehensive income (177,888) 71,877
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Net (loss) profit and other
comprehensive income per share
Basic and diluted $(0.01) $-
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See accompanying notes
CONSOLIDATED CASH FLOW STATEMENTS
UNAUDITED
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For the three months ended October 31st 2010 2009
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$ $
Cash flows provided by (used in):
Operating activities
Net (loss) profit for the period (177,888) 71,877
Items not affecting cash -
Amortization of property and equipment 35,374 32,768
Stock-based compensation costs 26,705 -
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Cash flow relating to operating
activities (115,809) 104,645
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Net changes in non-cash working capital
items -
Decrease in accounts receivable 57,785 310,387
Decrease in inventories 14,369 24,686
Decrease in prepaid expenses 28,320 19,905
(Decrease) increase in accounts
payable and accrued liabilities (9,280) 5,089
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Net changes in non-cash working capital
balances relating to operations 91,194 360,067
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Cash flow relating to operating
activities (24,615) 464,712
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Investing activities
Additions to property and equipment (155,386) (63,487)
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Cash flow relating to financing
activities (155,386) (63,487)
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(Decrease) Increase in cash and cash
equivalents during the quater (180,001) 401,225
Cash and cash equivalents - Beginning of
period 2,333,556 2,260,344
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Cash and cash equivalents - End of
period 2,153,555 2,661,569
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Contacts:
IBEX Technologies Inc.
Paul Baehr
President & CEO
514-344-4004 ext. 143