IBEX Technologies Inc. (TSX VENTURE:IBT), today reported its financial results
for the third quarter and nine months ended April 30, 2008.
FINANCIAL RESULTS
Solely for the convenience of the reader, selected financial results expressed
in Canadian dollars on the financial statements, have been translated into U.S.
dollars at the April 30, 2008 month-end rate C$1.00 equals US$ 0.9928. This
translation should not be construed as an application of the recommendations
relating to the accounting for foreign currency translation, but rather as
supplemental information for the reader.
Results for the Quarter
Sales for the three-month period ended April 30, 2008 totaled $712,997
(US$707,860) compared to $551,768 in the third quarter of fiscal 2007,
representing an increase of 29%.
Net profit for the third quarter of fiscal 2008 was $259,269 (US$257,400) or
$0.01 per share, compared to a net loss of $815,603 or ($0.04) per share for the
same period in fiscal 2007.
In addition to sales gains, the Company's profit improvement can be traced to
significantly reduced operating costs, from $1,367,765 in the prior year to
$453,752 in the current quarter, due to a cost reduction program which included,
among other things, the decision to terminate the research and development
activities related to its arthritis and cancer programs.
"The results for the quarter were enhanced by the recent industry crisis
regarding heparin, leading to an increase in sales of the Company's heparinase
products useful in the identification of heparin contaminants" said Paul Baehr,
President and CEO.
The heparin contamination issue presents a unique opportunity for the use of
IBEX pure recombinant enzymes and as a result IBEX has commenced development of
an easy-to-use enzyme-based assay to measure chondroitin contamination.
Results for the Nine Months
Sales for the nine-month period ended April 30, 2008 totaled $1,816,800
(US$1,803,720) compared to $1,454,113 for the same period in the prior year,
representing an increase of 25%.
Net profit for the nine-months ended April 30, 2008 was $158,622 (US$157,480) or
($0.01) per share compared to a net loss of $1,900,938 or ($0.08) per share for
the same period in fiscal 2007.
A significant contributor to the year to date profit (versus the net loss same
period of the prior year) is a reduction of the company's operating expenses
from $3,567,237 to $1,655,261 due to the previously mentioned cost reduction
program.
Working Capital
The Company's working capital was $1,629,408 as at the end of the quarter,
in-line with the guidance provided at the time of the restructuring announcement
and up from $1,338,625 as at the end of the prior quarter ending January 31,
2008 (and compared to $1,403,321 as at July 31, 2007).
LOOKING FORWARD
IBEX has been successful in bringing its existing business to profitability and
is now turning its attention to growth opportunities, including opportunities to
maximize shareholders' value through discussions with companies interested in
the IBEX infrastructure and its accumulated tax loss carry-forwards.
ABOUT IBEX
The Company markets a series of proprietary enzymes (heparinases and
chondroitinases) for research use, as well Heparinase I, which is used in many
leading hemostasis monitoring devices.
IBEX also markets a series of arthritis assays which are widely used in
pharmaceutical research. These assays are based on the discovery of a number of
specific molecular biomarkers associated with collagen synthesis and
degradation.
Safe Harbor Statement
All of the statements contained in this news release, other than statements of
fact that are independently verifiable at the date hereof, are forward-looking
statements. Such statements, based as they are on the current expectations of
management, inherently involve numerous risks and uncertainties, known and
unknown. Some examples of known risks are: the impact of general economic
conditions, general conditions in the pharmaceutical industry, changes in the
regulatory environment in the jurisdictions in which IBEX does business, stock
market volatility, fluctuations in costs, and changes to the competitive
environment due to consolidation or otherwise. Consequently, actual future
results may differ materially from the anticipated results expressed in the
forward-looking statements. IBEX disclaims any intention or obligation to update
these statements.
CONSOLIDATED BALANCE SHEETS
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April 30, July 31,
unaudited 2008 2007
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$ $
ASSETS
Current assets
Cash and cash equivalents 1,398,745 348,752
Marketable securities (note 3) - 1,099,673
Accounts receivable 345,138 500,509
Inventories 173,121 164,384
Prepaid expenses 133,065 135,014
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Sub-total Current Assests 2,050,069 2,248,332
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Property and equipment 255,919 303,271
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TOTAL ASSETS 2,305,988 2,551,603
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LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 420,661 845,011
--------------------------------------------------------------------------
Sub-total Current Liabilities 420,661 845,011
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TOTAL LIABILITIES 420,661 845,011
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SHAREHOLDERS' EQUITY
Capital stock (note 4) 52,660,078 52,660,078
Contributed surplus (note 4) 399,975 375,151
Profit (Deficit) (51,174,727) (51,328,637)
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TOTAL SHAREHOLDER'S EQUITY 1,885,327 1,706,592
--------------------------------------------------------------------------
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TOTAL LIABILITIES & SHAREHOLDER'S EQUITY 2,305,988 2,551,603
--------------------------------------------------------------------------
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CONSOLIDATED STATEMENTS OF DEFICIT
--------------------------------------------------------------------------
For the nine months ended April 30 (unaudited) 2008 2007
--------------------------------------------------------------------------
$ $
Balance - Beginning of period (51,328,637) (43,918,975)
Transition adjustment on adoption of financial
instrument standard (note 2) (4,711) -
--------------------------------------------------------------------------
Restated balance - Beginning of period (51,333,348) (43,918,975)
Net profit (Net loss) year to date 158,622 (7,409,662)
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Balance - End of period (51,174,727) (51,328,637)
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CONSOLIDATED STATEMENTS OF EARNING (LOSS)
Three months ended Nine months ended
April 30th April 30th
--------------------------------------------------------------------------
(unaudited) 2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
Revenue 712,997 551,768 1,816,800 1,454,113
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Operating expenses
Cost of good solds (200,821) (228,527) (735,318) (643,542)
Net research and
development expenditure
(note 7) 39,427 (372,938) 39,427 (986,805)
Selling, general and
administrative expenses (265,704) (723,584) (926,200) (1,925,728)
Amortization of property
and equipment (15,763) (33,497) (49,677) (100,409)
Amortization of
identifiable intangible
assets - (809) - (2,427)
Other interest and bank
charges (3,266) (8,435) (7,703) (24,266)
Foreign exchange loss
(note 6) (15,749) (48,872) (22,646) (27,785)
Investment income 8,124 48,897 36,857 143,725
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Total operating expenses (453,752) (1,367,765) (1,665,261) (3,567,237)
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259,245 (815,997) 151,540 (2,113,124)
Current Income taxes (24) (394) (7,082) (212,186)
--------------------------------------------------------------------------
Net profit (loss) 259,269 (815,603) 158,622 (1,900,938)
--------------------------------------------------------------------------
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Net profit (loss) per
share
Basic and diluted $0.01 $(0.04) $0.01 $(0.08)
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--------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENTS
Three months ended Nine months ended
April 30th April 30th
--------------------------------------------------------------------------
(unaudited) 2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
Cash flows provided by
(used in):
Operating activities
Net profit (loss) for the
period 259,269 (815,603) 158,622 (1,900,938)
Items not affecting cash -
Amortization of property and
equipment 15,763 42,270 49,678 126,726
Amortization of identifiable
intangible assets - 71,308 - 213,922
Stock-based compensation
costs 17,150 4,520 24,824 21,040
Accretion of interest on
balance of payments - 4,550 - 13,650
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Cash flow relating to
operating activities 292,182 (692,955) 233,124 (1,525,600)
--------------------------------------------------------------------------
Net changes in non-cash
working capital items -
Decrease in accounts
receivable 26,770 52,917 155,371 109,845
Decrease (increase) in
inventories (58,963) 22,595 (8,737) 63,790
(Increase) decrease in
prepaid expenses (45,903) (48,174) 1,949 (19,932)
(Decrease) increase in
accounts payable and
accrued liabilities 119,689 358,827 (429,061) 56,117
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Net changes in non-cash
working capital balances
relating to operations 41,593 386,165 (280,478) 209,820
--------------------------------------------------------------------------
Cash flow relating to
operating activities 333,775 (306,790) (47,354)(1,315,780)
--------------------------------------------------------------------------
Investing activities
Additions to marketable
securities - (2,001,239) - (5,640,573)
Proceeds on disposal of
marketable securities - 4,290,850 1,099,673 9,315,062
Additions to property and
equipment (1,400) (550) (2,326) (8,573)
Increase in other assets - (360,371) - (1,000,000)
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Cash flow relating to
financing activities (1,400) 1,928,690 1,097,347 2,665,916
--------------------------------------------------------------------------
Increase in cash and cash
equivalents during the year 332,375 1,621,900 1,049,993 1,350,136
Cash and cash equivalents -
Beginning of period 1,066,370 544,688 348,752 816,452
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Cash and cash equivalents -
End of period 1,398,745 2,166,588 1,398,745 2,166,588
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