IBEX TECHNOLOGIES INC.
TSX VENTURE : IBT

IBEX TECHNOLOGIES INC.

June 19, 2008 08:00 ET

IBEX Reports Fiscal 2008 3rd Quarter Results

Q3 Sales Up 29%. YTD Sales Up 25%. Profit posted for the Quarter and YTD

MONTREAL, QUEBEC--(Marketwire - June 19, 2008) - 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
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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
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For the nine months ended April 30 (unaudited) 2008 2007
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$ $

Balance - Beginning of period (51,328,637) (43,918,975)
Transition adjustment on adoption of financial
instrument standard (note 2) (4,711) -
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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
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$ $ $ $
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)
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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)
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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
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Cash flow relating to
operating activities 333,775 (306,790) (47,354)(1,315,780)
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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
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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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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release

Contact Information

  • IBEX Technologies Inc.
    Paul Baehr
    President & CEO
    514-344-4004 ext 147
    www.ibex.ca