IBEX Technologies Inc.
TSX VENTURE : IBT

IBEX Technologies Inc.

March 20, 2015 08:00 ET

IBEX Reports Results for the Second Quarter and the Six Months Ended January 31, 2015

MONTREAL, QUEBEC--(Marketwired - March 20, 2015) - IBEX Technologies Inc. ("IBEX" or the "Company") (TSX VENTURE:IBT) today reported its financial results for the six months ended January 31, 2015.

"This quarter was another difficult one for IBEX due to previously described purchasing cutbacks by some major customers. We are however encouraged by the use of heparinase I in one of our customers soon-to-be introduced products and by the recent new interest in heparinase I for use in new haemostasis point of care devices", said Paul Baehr, IBEX President and CEO, "we expect to see the benefits of these new initiatives in Fiscal 2016".

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.

SECOND QUARTER FISCAL 2015 FINANCIAL RESULTS

Sales for the quarter ended January 31, 2015 totaled $721,352 compared to $922,007 in the same period of the prior year. Sales were up by $121,800 in our Bio-Research Products ("BRP") subsidiary but down by $322,455 in our IBEX Pharma subsidiary. As has been explained in prior releases, IBEX Pharma is suffering from the cutback in purchases from its largest customer (and this volume has not yet been offset by new customers).

The Company sustained a net loss of $178,628, as compared to a net loss of $2,922 in the year ago period. This loss can be primarily traced to the $200,655 reduction in sales. Losses were incurred in both the IBEX Pharma and the BRP subsidiaries.

FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JANUARY 31, 2015

Sales for the six months ended January 31, 2015 totaled $1,348,799 compared to $1,801,123 the same period of the prior year . Sales in the BRP subsidiary were down by 7% and by 31% in the IBEX Pharma subsidiary, due to the reasons mentioned above.

The company recorded a net loss of $432,336 compared to a net loss of $406,941 for the same period a year ago. This net loss can be traced to the reduction in sales revenue.

Year-to-date results have been positively impacted by the depreciation of the Canadian dollar vs. the US dollar, as is explained in detail in the Management Discussion and Analysis which can be found on SEDAR.

Financial Summary for the six months ended
January 31,
2015
January 31,
2014
Revenues $ 1,348,799 $ 1,801,123
Loss before interest, tax, depreciation & amortization $ (235,489 ) $ (184,603 )
Depreciation $ 174,416 $ 202,992
Net loss $ (432,336 ) $ (406,941 )
Loss per share $ (0.02 ) $ (0.02 )

Cash and cash equivalents decreased by $253,565 during the six months ended January 31, 2015 as compared to the year ended July 31, 2014. Net working capital decreased by $231,650 during the six months ended January 31, 2015 as compared to the year ended July 31, 2014.

Balance Sheet Summary as at
January 31,
2015
July 31,
2014
Cash and cash equivalents $ 1,433,347 $ 1,686,912
Net working capital $ 2,328,427 $ 2,560,077
Outstanding shares at report date (common shares) 24,703,244 24,703,244

LOOKING FORWARD

Fiscal 2015 is 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 do so over the next two years 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 in late Fiscal 2015 and beyond. 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