IBEX TECHNOLOGIES INC.
TSX : IBT

IBEX TECHNOLOGIES INC.

December 12, 2007 11:23 ET

IBEX Reports Fiscal 2008 First Quarter Results

Sales Up 30% Net Loss Reduced

MONTREAL, QUEBEC--(Marketwire - Dec. 12, 2007) - IBEX Technologies Inc. (TSX:IBT), reported today its financial results for the three-month period ended October 31, 2007.

Operational Results

During the quarter ended October 31, 2007 and up to the date of this release, the following developments are noted:

- On a comparable year-to-year basis, invoiced sales at $554,587 were 30 % higher than the comparative quarter for the prior year ($428,068), and up 6% on a 12 months rolling basis. In US$, the currency of sale, sales were up 54% versus year ago.

- The Company also achieved its previously announced goal to have cash and net working capital in excess of $1,000,000 at the end of the quarter (at October 31, 2007, the Company's cash and cash equivalents totaled $1,041,472, and its net working capital was $1,231,669).

- The Company has been able to execute its restructuring plan effectively, and recorded a net loss of $188,174, versus a net loss of $774,527 in the comparative quarter a year ago (and down from a loss of $5,508,725 in the prior quarter, which had a significant number of one time expenses due to restructuring).

- On September 7, 2007, the TSX advised IBEX that it was reviewing the eligibility of IBEX for continued listing on the TSX as its listed securities did not maintain a market value of at least three million dollars over a period of 30 consecutive trading days. IBEX has been granted 120 days to regain compliance with TSX listing requirements. IBEX is taking steps to ensure that should it not meet the requirements for continued listing, its shares will be tradable on an alternative exchange.

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 October 31, 2007 month-end rate C$1.00 equals US$ 1.0585. This translation should not be construed as an application of the recommendation relating to the accounting for foreign currency translation, but rather as supplemental information for the reader.

Revenue for the three-month period ending October 31, 2007 totaled $554,587 (US$587,030) versus $428,068 in the same period of the prior year, ,representing an increase of 30% over the same period of the prior year.

For the three months ended October 31, 2007, IBEX recorded a net loss of $188,174 (US$199,182) or ($0.01) per share, compared to a net loss of $774,527 or ($0.03) per share for the same period in fiscal 2007. The net loss for the first quarter is almost entirely attributable to the balance of expenses relating to the completion of the previously announced restructuring plan.

The decrease in net loss versus the same period of the prior year is primarily attributable to the Company's decision in May 2007 to terminate research and development activities related to its arthritis and cancer programs. The Company did not incur any R&D expenses in the first quarter of fiscal year 2008 versus $384,252 in the same quarter of the previous year. Other factors contributing to the net loss decrease are: an increase in sales revenues, a decrease in selling, general and administrative expenses partially offset by an increase to foreign exchange loss.

LOOKING FORWARD

In addition to optimizing its base business, IBEX remains open to exploring opportunities to maximize shareholders' value through discussions with companies interested in the IBEX infrastructure and its accumulated tax loss carry-forwards.

On an operational basis, IBEX expects to achieve a positive EBITDA in the second quarter and to end the fiscal year with working capital in excess of $1,000,000.

The Company is also seeking cost-sharing arrangements to assist in the development of two low-cost, low-risk projects:

- A heparinase-containing blood collection tube for use in the clinical research market.

- A new arthritis assay based on a recombinant human CP II. This assay is would measure the human type II collagen carboxy propeptide which is cleaved from type II procollagen following release of newly synthesized procollagen into the matrix.

About IBEX

IBEX is a biopharmaceutical company manufacturing and selling proprietary enzymes and arthritis assays.

IBEX enzymes (heparinases and chondroitinases) are used as research reagents. Heparinase I, the most important of these enzymes is used in many leading hemostasis monitoring devices.

The Company's arthritis assays are 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.

TO THE SHAREHOLDERS OF IBEX TECHNOLOGIES INC.

The interim consolidated balance sheet of IBEX Technologies Inc. as of October 31, 2007 and the interim consolidated statements of loss and deficit and cash flows for the period then ended have not been reviewed by the Company's auditors, PricewaterhouseCoopers LLP. These financial statements are the responsibility of management and have been reviewed and approved by the Audit Committee.



CONSOLIDATED BALANCE SHEETS
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October 31, July 31,
unaudited 2007 2007
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$ $
ASSETS

Current assets
Cash and cash equivalents 1,041,472 348,752
Marketable securities (note 3) - 1,099,673
Accounts receivable 393,033 500,509
Inventories 156,380 164,384
Prepaid expenses 111,660 135,014
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1,702,545 2,248,332
Property and equipment 287,088 303,271
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1,989,633 2,551,603
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LIABILITIES

Current liabilities
Accounts payable and accrued liabilities 470,876 845,011
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470,876 845,011
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SHAREHOLDERS' EQUITY
Capital stock 52,660,078 52,660,078
Contributed surplus 380,201 375,151
Deficit (51,521,522) (51,328,637)
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1,518,757 1,706,592
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1,989,633 2,551,603
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CONSOLIDATED STATEMENTS OF DEFICIT
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For the three months ended October 31st
(unaudited) 2007 2006
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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 loss for the period (188,174) (774,529)
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Balance - End of period (51,521,522) (44,693,504)
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CONSOLIDATED STATEMENTS OF LOSS AND
COMPREHENSIVE LOSS
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For the three months ended October 31st
(unaudited) 2007 2006
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$ $

Revenue 554,587 428,068
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(Expenses) income
Research and development expenditures - (384,252)
Selling, general and administrative
expenses and cost of goods sold (636,730) (812,178)
Amortization of property and equipment (16,182) (33,511)
Amortization of identifiable intangible
assets - (809)
Other interest and bank charges (2,011) (8,659)
Foreign exchange loss (101,987) (2,631)
Investment income 14,149 39,445
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(742,761) (1,202,595)
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Net loss and other comprehensive loss (188,174) (774,527)
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Net loss and other comprehensive loss
per share Basic and diluted $(0.01) $(0.03)
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See accompanying notes



CONSOLIDATED CASH FLOW STATEMENTS
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For the three months ended October 31st
(unaudited) 2007 2006
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$ $
Cash flows provided by (used in):
Operating activities
Net loss for the period (188,174) (774,529)
Items not affecting cash -
Amortization of property and equipment 16,182 42,284
Amortization of identifiable intangible
assets - 71,308
Stock-based compensation costs 5,050 12,000
Accretion of interest on balance of
payments - 4,550
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(166,942) (644,387)
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Net changes in non-cash working capital
items -
Decrease in accounts receivable 107,476 141,786
Decrease in inventories 8,004 18,805
Decrease in prepaid expenses 23,354 42,711
Decrease in accounts payable and accrued
liabilities (378,845) (11,735)
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(240,011) 191,567
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(406,953) (452,820)
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Investing activities
Additions to marketable securities - (1,822,051)
Proceeds on disposal of marketable
securities 1,099,673 2,411,638
Additions to property and equipment - (653)
Increase in other assets - (250,000)
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1,099,673 338,934
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Increase (decrease) in cash and cash
equivalents during the year 692,720 (113,886)

Cash and cash equivalents - Beginning
of period 348,752 816,452
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Cash and cash equivalents - End of period 1,041,472 702,566
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Contact Information

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