Immunotec Inc.
TSX CROISSANCE : IMM
TSX VENTURE : IMM

Immunotec Inc.

March 28, 2008 23:59 ET

Interim financial information for the three-month period ended January 31, 2008

MONTREAL, March 28 - Immunotec Inc. (TSX-V: IMM) (the
"Company" or "Immunotec"), is engaged primarily in the development,
manufacturing and marketing of health and wellness products which are
classified as nutraceuticals, dietary supplements, or natural health products.
These products are distributed and sold in Canada and the United States
through a network marketing system and in other countries under
distributorship agreements.

Currently, approximately 53% of the network sales are in Canada and 38%
are in the U.S., with the remainder through export to other International
Markets. By individual markets and in their respective local currencies,
compared to prior year, net sales in the Canadian market posted an increase of
6%, the U.S. market was slightly ahead of the prior year and International
Markets realized a 69% increase, albeit on a small base.

Consolidated in Canadian dollars for the first quarter ended January 31,
2008, the Company realized net sales of $8,644,415 compared to $8,655,143 in
2007, a decrease of $10,728. This variation included an unfavourable foreign
exchange effect of approximately $661,000 due to the stronger Canadian dollar
relative to the comparable period in 2007.



SELECTED CONSOLIDATED FINANCIAL INTERIM INFORMATION

Q1 Q1
January 31, 2008 January 31, 2007
($) ($)
unaudited unaudited
----------------- -----------------
Net Sales 8,644,415 8,655,143
Cost of Sales 1,639,607 1,397,241
Sales Incentives 3,542,210 3,642,096
Selling, General and Administrative 2,897,508 2,866,147
Earnings before income taxes 565,090 749,659
Net Earnings 311,061 505,763
Net Earnings per share:
Basic 0.004 0.008
Diluted 0.004 0.007
Weighed average number of common
shares outstanding:
Basic 69,994,300 62,869,951
Diluted 69,994,300 68,325,721
-------------------------------------



As at As at
January 31, 2008 October 31, 2007
($) ($)
unaudited audited
----------------- -----------------
ASSETS:
-------
Cash 4,859,061 3,874,558
Accounts receivable 594,131 505,366
Other current Assets 3,676,669 3,728,109
----------------- -----------------
Total current Assets 9,129,861 8,108,033
----------------- -----------------

Other Assets 11,995,276 12,246,573
----------------- -----------------
TOTAL ASSETS 21,125,137 20,354,606
----------------- -----------------
----------------- -----------------
LIABILITIES:
------------
Current Liabilities 3,833,414 3,475,800
Long Term Liabilities 283,682 393,600
----------------- -----------------
TOTAL LIABILITIES 4,117,096 3,869,400
----------------- -----------------
----------------- -----------------
SHAREHOLDERS' EQUITY:
---------------------
Share Capital 3,465,548 3,465,548
Other Equity-Stock Options 948,190 736,416
Contributed surplus 11,326,406 11,326,406
Retained Earnings 1,267,897 956,836
----------------- -----------------

TOTAL SHAREHOLDERS' EQUITY 17,008,041 16,485,206
----------------- -----------------
----------------- -----------------

-------------------------------------


OPERATING RESULTS FOR THE FIRST QUARTER ENDED JANUARY 31, 2008

Net earnings were $311,061 ($0.004 per share) for the first quarter
ending January 31, 2008 compared to $505,763 ($0.008 per share) for the
comparable period in 2007. The decrease of the net earnings is mainly
attributable due to the increase in stock option compensation expense and to
lower product gross margins from product/market mix, which was partially
offset by a gain in foreign exchange variation.

FINANCIAL SITUATION AND LIQUIDITY

As at January 31, 2008, the Company had a cash position of $4,859,061
compared to $1,879,069 as at January 31, 2007. The Company believes that cash
requirements in the ordinary course of business for next year can be met with
its available cash, cash generated from its operating activities and the
reduction of income tax payments caused by the realization of prior years
income tax losses. If required, the Company has access to operating credit
facilities of $2,000,000 at its bank's prime rate plus 1/2 %. The credit
facilities were not drawn upon to date.

As at January 31, 2008, the Company shows a working capital of $5,296,447
for a ratio of 2.38 compared to a working capital of $2,640,049 with a ratio
of 1.44 as at January 31, 2007. This improvement is mainly attributable to the
fact that the Company reinvests the majority of the funds generated by the
operations.

HIGHLIGHTS

On November 5, 2007, Mr. James A. Northrop was appointed President and
Chief Executive Officer replacing Mr. Charles Roberts who retired. Mr. Roberts
continues as an active member of the Board and as co-founder of the Company.
Mr. Northrop has impressive experience in the direct selling industry and is a
seasoned chief executive with a record of success in rapid growth situations.

On November 13, 2007, the Company achieved a significant milestone by
receiving regulatory approval from Health Canada to market HMS 90® /
IMMUNOCAL® with the following health claim: "a natural source of the
glutathione precursor cysteine for the maintenance of a strong immune system."

On January 17, 2008, the Company announced the successful completion of a
multi-center randomized, double-blind clinical trial on cancer-related weight
loss (cachexia) in lung cancer patients which was performed in collaboration
with various Canadian clinical centers. A second trial has been initiated to
confirm the results.

In the last two quarters, the Company's total net sales showed increases
of 3.0% and 7.5%, respectively, (excluding the foreign exchange impact),
compared to the corresponding periods in 2007. This positive trend represents
a reversal of sales declines the Company had expressed in the prior six
quarters and supports the beneficial impact of the sales and marketing
initiatives implemented in 2007.

OUTLOOK

Immunotec benefits from a solid balance sheet, skilled and motivated
employees, well established suppliers, repeat customers and a dedicated
network of distributors. Since last year the management implemented new
measures and sales and marketing initiatives and it believes that these
measures will help increase sales during the present and following years.

Management is of the opinion that its investment in current research in
such areas as cancer cachexia, prostate health, aging and aging related
conditions will enable Immunotec to produce and bring to market more value
added products which will continue to differentiate its products from
competing products.

Immunotec, following recommendations from its Product Development
Committee, is constantly developing new products that are appropriate for its
health and wellness markets.

ABOUT IMMUNOTEC

Immunotec operates out of a 37,000 square foot facility located in
Vaudreuil-Dorion, Quebec, Canada as well as a manufacturing facility located
in Blainville, Quebec, Canada and a distribution centre located in Swanton,
Vermont, USA. Immunotec is engaged primarily in the development and marketing
of dietary supplements, food, vitamins, personal care products and natural
health products, some of which are manufactured on its behalf by third
parties. Immunotec's products are distributed and sold in Canada and the
United States through a network marketing system and in other countries under
distributorship agreements.

The TSX Venture does not accept responsibility for the adequacy or
accuracy of this release.

%SEDAR: 00011993EF

Contact Information

  • Richard Patte, CA, Executive Vice-President and
    Chief Financial Officer, (450) 510-4445