IBEX TECHNOLOGIES INC.
TSX : IBT

IBEX TECHNOLOGIES INC.

March 11, 2008 14:59 ET

IBEX Reports Fiscal 2008 Second Quarter Results

IBEX Restructuring Complete. Posts Profit for the Quarter

MONTREAL, QUEBEC--(Marketwire - March 11, 2008) - IBEX Technologies Inc. (TSX:IBT), a Montreal-based biopharmaceutical company, today reported its financial results for the second quarter and six months ended January 31, 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 January 31, 2008 month-end rate C$1.00 equals US$ 0.9889. 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.

Sales for the three-month period ended January 31, 2008 totaled $549,217 (US$543,120) compared to $474,276 in the second quarter of fiscal 2007, representing an increase of 16%.

Sales for the six-month period ended January 31, 2008 totaled $1,103,803 (US$1,091,550) compared to $902,344 for the same period in the prior year, representing an increase of 22%.

Net profit for the second quarter of fiscal 2008 was $87,527 (US$86,555) or $0.004 per share, compared to a net loss of $310,808 or ($0.01) 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 costs and an unrealized gain in foreign exchange due to an increase in the value of the US dollar during the second quarter as compared to the first quarter (the impact of the "Embedded Derivatives" accounting policy).

Net loss for the six-months ended January 31, 2008 was $100,647 (US$99,530) or ($0.004) per share compared to a net loss of $1,085,335 or ($0.05) per share for the same period in fiscal 2007. 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 six months of fiscal year 2008 versus $229,614 in the same period of the previous year. Other factors contributing to the net loss decrease are: an increase in sales, a decrease in selling, general and administrative expenses and amortization, and the previously mentioned unrealized gain in foreign exchange

The Company's working capital was $1,338,625 as at the end of the quarter, in line with the guidance provided at the time of the restructuring announcement and up from $1,231,669 as at the end of the prior quarter ending October 31, 2007 (and compared to $1,403,321 as at July 31, 2007).

LOOKING FORWARD

While sales for the quarter and year-to-date are robust, sales for the full year are expected to be only modestly ahead of the previous year, and since the Company's products' sales are recorded in US currency, results are highly variable.

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.

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 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

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.

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

The TSX Venture Exchange does not accept 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, 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
-------------------------------------------------------------------------
January 31, July 31,
unaudited 2008 2007
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$ $
ASSETS
Current assets
Cash and cash equivalents 1,066,369 348,752
Marketable securities (note 2) - 1,099,673
Accounts receivable 371,908 500,509
Inventories 114,159 164,384
Prepaid expenses 87,161 135,014
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1,639,597 2,248,332
Property and equipment 270,283 303,271
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1,909,880 2,551,603
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LIABILITIES

Current liabilities
Accounts payable and accrued liabilities 300,972 845,011
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300,972 845,011
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SHAREHOLDERS' EQUITY

Capital stock 52,660,078 52,660,078

Contributed surplus 382,825 375,151
Deficit (51,433,995) (51,328,637)
-------------------------------------------------------------------------
1,608,908 1,706,592
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1,909,880 2,551,603
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CONSOLIDATED STATEMENTS OF DEFICIT
-------------------------------------------------------------------------
For the six months ended January 31st (unaudited) 2008 2007
-------------------------------------------------------------------------
$ $

Balance - Beginning of period (51,328,637) (43,918,975)
Transition adjustment on adoption of financial
instrument standard (note 2) (4,711) -
-------------------------------------------------------------------------
Restated balance - Beginning of period (51,333,348) (43,918,975)

Net loss for the period (100,647) (774,529)
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Balance - End of period (51,433,995) (44,693,504)
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CONSOLIDATED STATEMENTS OF LOSS
Three months ended Six months ended
January 31st January 31st
-------------------------------------------------------------------------
(unaudited) 2008 2007 2008 2007
-------------------------------------------------------------------------
$ $ $ $

Gross sales 549,217 474,276 1,103,803 902,344
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(Expenses) income
Research and
development
expenditures - (382,725) - (766,977)
Tax credit on
research and
development - 153,111 - 153,111
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Net research and
development
expenditures - (229,614) - (613,866)

Selling, general
and administrative
expenses and cost
of goods sold (558,263) (804,981) (1,194,992) (1,617,160)
Amortization of
property and
equipment (17,732) (33,401) (33,914) (66,912)
Amortization of
identifiable
intangible assets - (809) - (1,618)
Other interest
and bank charges (2,426) (7,172) (4,437) (15,831)
Foreign exchange
gain (loss)
Note 6 95,089 23,718 (6,897) 21,088
Investment income 14,584 55,383 28,732 94,828
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(468,748) (996,876) (1,211,508) (2,199,471)
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80,469 (522,600) (107,705) (1,297,127)
Current Income
taxes (7,058) (211,792) (7,058) (211,792)
-------------------------------------------------------------------------
Net profit (loss) 87,527 (310,808) (100,647) (1,085,335)
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-------------------------------------------------------------------------

Net profit (loss)
per share
Basic and diluted $0.004 $(0.01) $(0.004) $(0.05)
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CONSOLIDATED CASH FLOW STATEMENTS
Three months ended Six months ended
January 31st January 31st
-------------------------------------------------------------------------
(unaudited) 2008 2007 2008 2007
-------------------------------------------------------------------------
$ $ $ $
Cash flows provided
by (used in):
Operating
activities
Net loss for the
period 87,527 (310,808) (100,647) (1,085,335)
Items not
affecting cash -
Amortization of
property and
equipment 17,732 42,173 33,914 84,456
Amortization of
identifiable
intangible assets - 71,307 - 142,614
Stock-based
compensation
costs 2,616 4,520 7,673 16,520
Accretion of
interest on
balance of
payments - 4,550 - 9,100
Loss on sale of
marketable
securities - - - -
-------------------------------------------------------------------------
107,875 (188,258) (59,060) (832,645)
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Net changes in
non-cash working
capital items -
Decrease
(increase) in
accounts
receivable 21,125 (84,858) 128,600 56,928
Decrease
(increase) in
inventories 42,222 22,390 50,226 41,195
Decrease
(increase) in
prepaid
expenses 24,499 (14,469) 47,853 28,242
Decrease in
accounts
payable and
accrued
liabilities (169,904) (290,974) (548,749) (302,710)
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(82,058) (367,911) (322,070) (176,345)
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25,817 (556,169) (381,130) (1,008,990)
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Investing activities
Additions to
marketable
securities - (1,817,283) - (3,639,334)
Proceeds on
disposal of
marketable
securities - 2,612,573 1,099,673 5,024,212
Additions to
property and
equipment (926) (7,370) (926) (8,023)
Increase in other
assets (note 6) - (389,629) - (639,629)
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(926) 398,291 1,098,747 737,226
-------------------------------------------------------------------------

Increase (decrease)
in cash and cash
equivalents during
the year 24,891 (157,878) 717,617 (271,764)

Cash and cash
equivalents
- Beginning of
period 1,041,478 702,566 348,752 816,452
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Cash and cash
equivalents
- End of period 1,066,369 544,688 1,066,369 544,688
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Contact Information

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