IBEX TECHNOLOGIES INC.
TSX VENTURE : IBT

IBEX TECHNOLOGIES INC.

December 15, 2010 08:00 ET

IBEX Reports Its First Quarter Fiscal 2011 Results

MONTREAL, QUEBEC--(Marketwire - Dec. 15, 2010) - IBEX Technologies Inc. (TSX VENTURE:IBT), today reported its financial results for the first quarter ended October 31, 2010.

FINANCIAL RESULTS FOR THE FIRST QUARTER OF FISCAL 2011

Sales for the quarter ended October 31, 2010 totaled $512,975, a decrease of 21% as compared to $646,656 in the same period of the prior year. This net decrease of $133,681 is mainly due to the weakness of the US dollar ($55,566) and to a downturn in volume ($78,115), all of which can be accounted for by one customer who had overestimated demand in 2010.

Excluding foreign exchange impact, expenses for the first quarter ended October 31, 2010 have increased by $125,110 to $690,863. This increase is attributable to several factors such as new R&D projects, a non-cash expense related to stock based compensation and other operational costs.

The net loss was $177,888 compared to net earnings of $71,877 for the same period year ago. The decrease in net earnings is mainly due, as mentioned above, to lower sales and the strengthening of the Canadian dollar versus the US dollar (which negatively impacts the sales when converted into Canadian currency), and to an increase in operating expenses.

Cash, cash equivalents, and marketable securities decreased 6% during the quarter to $2,853,555 from $3,033,556. The Company's working capital was $3,007,680 as at the end of the first quarter ended October 31, 2010 down from $3,278,875 as at the end of the prior quarter ending July 31, 2010. This decrease is due to a decrease in accounts receivable (due to lower sales).

"These results are consistent with previous guidance" said Paul Baehr, IBEX President and CEO. "We expect to see softness in our business environment through the balance of Fiscal 2011, before recovering in Fiscal 2012."

Financial Summary for the quarters ending      
       
  October 31, 2010   October 31, 2009
Revenues $512,975   $646,656
(Loss) Earning Before Interests, Tax, Depreciation & Amortization ($144,476 ) $103,350
Depreciation & Amortization $35,324   $32,708
Net (Loss) Earnings ($177,888 ) $71,877
(Loss) Profit per Share ($0.01 ) $0.00
Cash, Cash Equivalents & Marketable Securities $2,853,555   $2,661,569
Working Capital $3,007,680   $2,930,953
Outstanding shares at report date (Common Shares) 24,703,244   24,703,244

LOOKING FORWARD        

Fiscal 2011 looks to be a difficult year for IBEX's major US customers, and therefore for IBEX. Additionally, the Canadian dollar is forecast to remain strong against the US dollar, which does not work in our favour. We therefore do not expect to have positive net earnings in Fiscal 2011, but expect to return to profitability in Fiscal 2012, as the US economy improves.

Despite a difficult outlook for Fiscal 2011 we will continue to invest in the future. IBEX is adding additional manufacturing capacity, and will continue with the development of our improved immuno-assays, which are scheduled for introduction in calendar 2011, with financial benefits accruing in Fiscal 2012.

ABOUT IBEX

The Company manufactures and markets a series of proprietary enzymes (heparinases and chondroitinases). These enzymes are used in pharmaceutical research, quality assurance, and in the case of Heparinase I, in diagnostic devices which measure hemostasis in patients.

IBEX also manufactures and markets a series of arthritis assays which are widely used in pharmaceutical research. These assays enable the measurement of both the synthesis and degradation of cartilage components, and are powerful tools in the study of osteo- and rheumatoid arthritis.

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        
UNAUDITED October 31, 2010   July 31, 2010  
  $   $  
ASSETS        
   
Current assets        
Cash and cash equivalents 2,153,555   2,333,556  
Martketable securities 300,000   300,000  
Accounts receivable 364,977   422,761  
Inventories 211,995   226,364  
Prepaid expenses 39,916   68,236  
Sub-total current assets 3,070,443   3,350,917  
Long term deposit 8,650   8,650  
Martketable securities 400,000   400,000  
Property and equipment 880,396   760,384  
Total assets 4,359,489   4,519,951  
   
LIABILITIES        
Current liabilities        
Accounts payable and accrued liabilities 462,763   472,042  
Total liabilities 462,763   472,042  
   
SHAREHOLDERS' EQUITY        
   
Capital stock 52,660,078   52,660,078  
Contributed surplus 549,465   522,760  
Deficit (49,312,817 ) (49,134,929 )
Total shareholders' equity 3,896,726   4,047,909  
Total liabilities and shareholders' equity 4,359,489   4,519,951  
   
   
CONSOLIDATED STATEMENTS OF DEFICIT October 31, 2010   October 31, 2009  
  $   $  
   
Balance - Beginning of period (49 134 929 ) (49,641,291 )
   
Net (loss) profit for the period (177,888 ) 71,877  
Balance - End of period (49,312,817 ) (49,569,414 )
         
         
         
CONSOLIDATED STATEMENTS OF (LOSS) EARNING AND COMPREHENSIVE INCOME        
   
UNAUDITED        
For the three months ended October 31st 2010   2009  
  $   $  
Revenue 512,975   646,656  
   
Operating expenses        
Research and Development expenditures (56,774 ) -  
Selling, general and administrative expenses and cost of goods sold (562,212 ) (495,125 )
Amortization of property and equipment (35,324 ) (32,768 )
Other interest and bank charges (2,779 ) (3,468 )
Foreign exchange (loss) gain (35,686 ) (44,712 )
Investment income 1,912   1,294  
   
Total operating expenses (690,863 ) (574,779 )
   
Net (loss) profit and other comprehensive income (177,888 ) 71,877  
   
Net (loss) profit and other comprehensive income per share        
Basic and diluted $(0.01 ) $-  
   
See accompanying notes        
         
         
         
CONSOLIDATED CASH FLOW STATEMENTS        
   
UNAUDITED        
For the three months ended October 31st 2010   2009  
  $   $  
Cash flows provided by (used in):        
Operating activities        
Net (loss) profit for the period (177,888 ) 71,877  
Items not affecting cash -        
  Amortization of property and equipment 35,374   32,768  
  Stock-based compensation costs 26,705   -  
   
Cash flow relating to operating activities (115,809 ) 104,645  
   
Net changes in non-cash working capital items -        
  Decrease in accounts receivable 57,785   310,387  
  Decrease in inventories 14,369   24,686  
  Decrease in prepaid expenses 28,320   19,905  
  (Decrease) increase in accounts payable and accrued liabilities (9,280 ) 5,089  
Net changes in non-cash working capital balances relating to operations 91,194   360,067  
Cash flow relating to operating activities (24,615 ) 464,712  
   
Investing activities        
Additions to property and equipment (155,386 ) (63,487 )
Cash flow relating to financing activities (155,386 ) (63,487 )
   
(Decrease) Increase in cash and cash equivalents during the quater (180,001 ) 401,225  
Cash and cash equivalents - Beginning of period 2,333,556   2,260,344  
Cash and cash equivalents - End of period 2,153,555   2,661,569  
   
  -      

Contact Information

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