IBEX Technologies Inc.
TSX VENTURE : IBT

IBEX Technologies Inc.

December 17, 2014 08:00 ET

IBEX Reports First Quarter Fiscal 2015 Results

MONTREAL, QUEBEC--(Marketwired - Dec. 17, 2014) - IBEX Technologies Inc. ("IBEX" or the "Company") (TSX VENTURE:IBT) today reported its financial results for the quarter ended October 31, 2014.

"This quarter was another difficult one due to previously described purchasing cutbacks by some major customers. We continue to aggressively pursue new product opportunities and are optimistic that at least one new significant product from one of our major customers is progressing rapidly towards the market place. We are also encouraged by a recent increase in interest in one of our key enzymes for use in new haemostasis point of care devices", said Paul Baehr, IBEX President and CEO.

Note: All figures are in Canadian dollars unless otherwise stated. The Company's audited consolidated financial statements for the year ended July 31, 2014 and the accompanying notes and the related management's discussion and analysis can be found on the Company's website at www.ibex.ca or under the Company's profile on SEDAR at www.sedar.com.

FIRST QUARTER FISCAL 2015 FINANCIAL RESULTS

Sales for the quarter ended October 31, 2014 totaled $627,447 compared to $879,116 in the same period of the prior year. Sales were down by $49,507 in our IBEX Pharma subsidiary and by $202,162 in our Bio-Research Products ("BRP") subsidiary. As has been explained in prior releases, a number of major customers have high inventories and have reduced their purchase patterns.

The Company sustained a net loss of $253,708, as compared to a net loss of $404,019 in the year ago period. Losses were incurred in both the IBEX Pharma and the BRP subsidiaries. A reduction in expenses of $401,980 was offset by the reduction in sales of $251,669.

Financial Summary for the quarters ended
October 31,
2014
October 31,
2013
Revenues $627,447 $879,116
Loss before interest, tax, depreciation & amortization ($161,642 ) ($292,405 )
Depreciation $84,137 $102,330
Net loss ($253,708 ) ($404,019 )
Loss per share ($0.01 ) ($0.02 )

Cash and equivalents increased by $64,886 during the quarter ended October 31, 2014 as compared to the year ended July 31, 2014. Net working capital decreased by $179,873 during the quarter ended October 31, 2014 as compared to the year ended July 31, 2014.

Balance Sheet Summary as at
October 31,
2014
July 31,
2014
Cash and cash equivalents $1,751,798 $1,686,912
Net working capital $2,380,204 $2,560,077
Outstanding shares at report date (common shares) 24,703,244 24,703,244

LOOKING FORWARD

Fiscal 2015 will be another challenging year for the Company. As previously announced, a major customer of the IBEX Pharmaceuticals subsidiary significantly cut back its purchases during F2014 and will continue to do so over during the course of this fiscal year as it works off excess inventory.

While we expect sales from other IBEX customers to increase, we do not expect that they will do so to the extent that they will overcome the deficit in the near term. We also expect that sales of the BRP subsidiary will be down in Fiscal 2015 due to cutbacks in purchases from one of its major customers.

The Company has been working on a number of projects, some of which could result in significant revenue commencing in late Fiscal 2015. However, there can be no assurances that any of these projects will come to fruition or produce the expected revenues.

Management believes that the Company has sufficient funds to meet its obligations and planned expenditures for the ensuing twelve months as they fall due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period.

ABOUT IBEX

IBEX manufactures and markets proteins for biomedical use through its wholly owned subsidiaries IBEX Pharmaceuticals Inc. (Montreal, QC) and the recently acquired Bio-Research Products, Inc. (North Liberty, IA). IBEX Pharmaceuticals also manufactures and markets a series of arthritis assays which are widely used in osteoarthritis research.

For more information, please visit the Company's website at www.ibex.ca.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts 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, as they are based on the current assessment or 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, except if required by applicable laws.

In addition to the risk factors identified above, IBEX is, and has been in the past, heavily reliant on three products and five customers, the loss of any of which could have a material effect on its profitability.

Contact Information

  • Paul Baehr
    President & CEO
    IBEX Technologies Inc.
    514-344-4004 x 143