International Technologies Corporation
TSX VENTURE : ITI

International Technologies Corporation

August 28, 2007 19:33 ET

CORRECTION FROM SOURCE: ITC Announces Second Quarter 2007 Results

RICHMOND, BRITISH COLUMBIA--(Marketwire - Aug. 28, 2007) - International Technologies Corporation (TSX VENTURE:ITI) -

A correction from source is issued with respect to the release issued today at 6:28 pm EDT. The word "third" in the second paragraph should have read "second". The corrected release follows:

International Technologies Corporation ("ITC") (TSX VENTURE:ITI) (or "the Company") announced today its unaudited financial results for its second quarter ending June 30, 2007.

Consolidated revenues were $4,979,608 for the three months ending June 30, 2007 compared to $6,299,170 for the corresponding quarter in June 30, 2006. ITC sold approximately the same volume of units in the second quarter 2007 compared to the three months ending June 30, 2006 however industry wide price fluctuations and changes in the Company's accounting policy muted top line performance. Market prices have since stabilized providing ITC with clearer forecasting abilities, an opportunity to introduce higher margin products to its supply chain and the implementation of other strategic initiatives.

"It has been an unpredictable ride in the consumer electronics space over the last couple years. Digital technology is advancing faster than ever with clearance products flooding the market to keep up with demand for new innovation," said Michael Uhm, ITC's President and CEO. "Despite industry volatility, ITC maintains a solid position in the marketplace and has leveraged existing relationships to enter new regions that have less competition and greater opportunities. Our commitment to forge ahead and return to double digit growth remains a top priority."

The Company's gross margin was $935,433 or 18.8% for the three months ended June 30, 2007 compared to $1,125,722 or 18% a year earlier. ITC's gross margin was affected as a result of clearance sell-offs when a major MP3 supplier released new product earlier than expected in the year causing all other suppliers to discount their products in order to remain competitive.

EBITDA was $308,867 or $0.02 per share for the quarter ended June 30, 2007, compared to $244,453 or $0.02 per share for the same period in 2006. The Company had net income of $23,635 and $0.00 per share versus $81,769 or $0.01 per share for the second quarter 2006.

ITC's latest models of MP3/MP4 and PMP players include the same must-have new features of other top selling brands, at more attractive price points. The Company anticipates Back to School and Christmas sales will generate higher returns now that market prices have stabilized. PMP and MP3/MP4 players represent one of the fastest-growing segments of the consumer electronics industry today, with unit shipments expected to more than double to 268.6 million units in 2011, according to a leading U.S. research firm, iSuppli Corp.

In addition to marketing feature-rich, easy to use digital products which carry a significant competitive advantage, the Company's manufacturing partner MPIO International has increased its facilities in Asia to better serve the needs of its reseller partners. Facility enhancements are now fully operational and have provided improvements to distributor pricing which ITC anticipates will show in its full year 2007 fiscal performance.

The Company remains confident of its ability to better manage market uncertainties having taken steps to minimize further risk. ITC plans to increase the number of customer accounts and deliver additional value-added products and services to its existing sales channel in order to enhance its market presence further.

The Company's complete financial results can be found on SEDAR at www.sedar.com.

About ITC

International Technologies Corporation (www.itcco.com) is a global supplier of innovative digital audio, multi-media, home entertainment, flat screen monitors/televisions and other advanced electronics products to the consumer and commercial market place. ITC also creates private label and OEM brands for its retail partners. The Company's ability to deliver manufacturer-direct product provides savings and other significant advantages to its customers.

ITC holds the exclusive rights to distribute MPIO products to the North, Central and South American markets in addition to Mexico and Australia through its relationship with Digitalway Korea and has exclusivity on all Hansol Korea LCD monitors sold to the North American market.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development. ITC will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by ITC. (This release is not a solicitation to United States residents to purchase securities in the Company).

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

Contact Information

  • International Technologies Corporation
    Loa Fridfinnson
    Activ8 Corporate Relations
    (604) 687-2004 or Toll Free: 1-800-303-3367
    Email: ir@itcco.com
    or
    International Technologies Corporation
    Mr. Fred Baldwin
    Chief Financial Officer
    (604) 247-1202
    Email: fbaldwin@itcco.com
    Website: www.itcco.com