IBEX TECHNOLOGIES INC.
TSX VENTURE : IBT

IBEX TECHNOLOGIES INC.

June 16, 2010 08:00 ET

IBEX Reports Third Quarter Fiscal 2010 Results

Cash, Working Capital up 40% and 47% year on year, respectively, despite lower sales

MONTREAL, QUEBEC--(Marketwire - June 16, 2010) - IBEX Technologies Inc. (TSX VENTURE:IBT), today reported its financial results for the third quarter ended April 30, 2010.

FINANCIAL RESULTS FOR THE THIRD QUARTER

IBEX noted that during the third quarter of fiscal year 2010, the average exchange rate for USD, the currency-of-sale, dropped to $1.03 vs. $1.25 in the third quarter ended April 30, 2009.

Partially as a result of this decline in our currency-of-sale, reported sales in Canadian dollars for the quarter ended April 30, decreased 56% as compared to the exceptional quarter year-ago, and decreased 46% vs. the previous quarter.

Additionally, the year-ago quarter benefited from a large one time order pertaining to an arthritis study which is no longer running. Also contributing to the decline in this quarter vs. year ago was a reduction in orders by one of our major customers of diagnostic enzymes. This customer has now returned to their regular order pattern.

Net earnings for the quarter ended April 30, 2010 were $137,927 or $0.01 per share, compared to net earnings of $242,582, or $0.01 per share, for the same period year ago, representing a decrease of 43%. This decrease is mainly attributable to the decline in sales for the quarter, rather than increasing costs.

Excluding foreign exchange, expenses during the quarter decreased by 4% versus vs. year-ago and also by 19% vs. the previous quarter. Foreign exchange gains of $353,029 were recorded in the quarter vs. a loss of $117,725 in the same period year ago.

Cash, cash equivalents, and marketable securities increased 12% during the quarter to $2,973,894 and are up 40% vs. the same period year ago.

The Company's working capital was up 47% to $3,482,086 as at the end of the third quarter ended April 30, 2010 as compared to $2,390,884 as at the end of the quarter ending April 30, 2009.

"As anticipated, the Company saw a sales decline due to a declining US dollar (which will effect us in the next quarter as well), said Paul Baehr, IBEX President & CEO, however we are encouraged by our increasing cash and working capital levels."

Financial Summary for the quarters ending
  April 30, 2010 April 30, 2009
Revenues $469,502 $1,072,603
Earning Before Interests, Tax, Depreciation & Amortization $156,700 $265,103
Depreciation & Amortization $25,935 $26,470
Net Earnings $137,927 $242,582
Net Earnings per Share $0.01 $0.01
Cash, Cash Equivalents & Marketable Securities $2,973,894 $2,118,086
Net Working Capital $3,482,086 $2,390,884
Outstanding shares at report date (Common Shares) 24,703,244 24,703,244

LOOKING FORWARD

IBEX has been successful in bringing its existing business to profitability and is now turning its attention to pursuing growth opportunities, including further growing its base business, and maximizing shareholder value through strategic initiatives with companies where increased market strength and synergies might be obtained.

Looking forward, we are investing in production capacity to meet increasing demand for enzyme-based products, and we are also adding modestly to our assay development team to accelerate the development of a number of new assays.

On a quarter to quarter basis the Company expects that it will see large fluctuation in sales as a result in the volatility of the Canadian dollar, however, it expects that on average, cash flow will increase steadily due to strong fundamentals and the Company's hedging strategy which is more fully explained in the MD&A.

ABOUT IBEX

The Company manufactures and markets a series of proprietary enzymes (heparinases and chondroitinases) for use in pharmaceutical research by our customers, as well Heparinase I, which is used in many leading hemostasis monitoring devices.

IBEX also manufactures and markets a series of arthritis assays which are widely used in pharmaceutical research by our customers. These assays are based on the discovery and increasing role 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        
  April 30   July 31,  
UNAUDITED 2010   2009  
  $   $  
ASSETS        
Current assets        
Cash and cash equivalents 2,973,894   2,260,344  
Accounts receivable 553,645   996,830  
Inventories 327,327   321,922  
Prepaid expenses 102,728   63,258  
Sub-total current assets 3,957,594   3,642,354  
Long term deposit 8,650   8,650  
Property and equipment 634,556   530,544  
Total assets 4,600,800   4,181,548  
         
LIABILITIES        
Current liabilities        
Accounts payable and accrued liabilities 475,508   761,208  
Total liabilities 475,508   761,208  
         
SHAREHOLDERS' EQUITY        
Capital stock 52,660,078   52,660,078  
Contributed surplus 471,708   401,553  
Deficit (49,006,494 ) (49,641,291 )
Total shareholders' equity 4,125,292   3,420,340  
Total liabilities and shareholders' equity 4,600,800   4,181,548  
         
         
CONSOLIDATED STATEMENTS OF DEFICIT April 30,   April 30,  
  2010   2009  
  $   $  
         
Balance - Beginning of period (49 641 291 ) (50,985,029 )
         
Net earnings for the period 634,797   869,106  
Balance - End of period (49,006,494 ) (50,115,923 )
         
         
         
         
           
CONSOLIDATED STATEMENTS OF EARNING AND COMPREHENSIVE INCOME          
                 
UNAUDITED                
  Three months ended   Nine months ended  
  April 30   April 30  
  2010   2009   2010   2009  
   $   $    $   $  
Revenue 469,502   1,072,603   1,987,196   2,680,591  
                 
Operating expenses                
  Selling, general and administrative expenses                
  and cost of goods sold (641,476 ) (688,335 ) (1,677,015 ) (1,825,255 )
  Amortization of property and equipment (25,935 ) (26,470 )  (93,676 ) (58,488 )
  Other interest and bank charges (3,161 ) (3,223 ) (9,796 ) (14,434 )
  Foreign exchange gain (loss) 353,029   (117,725 ) 437,989   50,892  
  Gain on sale of assets (21,194 ) 1,783   (21,194 ) 12,172  
  Investment income 7,162   3,949   11,293   23,628  
Total operating expenses (331,575 ) (830,021 ) (1,352,399 ) (1,811,485 )
                 
Net earnings and other comprehensive income 137,927   242,582   634,797   869,106  
                 
                 
Net earnings and other comprehensive income per share                
Basic and diluted  $ 0.01   $ 0.01   $0.03   $ 0.04  
                 
                 
See accompanying notes                
         
         
         
         
CONSOLIDATED CASH FLOW STATEMENTS Three months ended   Nine months ended  
  April 30   April 30  
UNAUDITED 2010   2009   2010   2009  
   $   $    $   $  
                 
Cash flows provided by (used in):                
Operating activities                
Net profit for the period $137,927   $242,582   $634,797   $869,106  
Items not affecting cash -                
  Amortization of property and equipment 25,935   26,470   93,676   58,488  
  Stock-based compensation costs 9,375   349   70,155   5,300  
  Gain on disposal of property and equipment -   (1,783 ) -   (12,172 )
                 
Cash flow relating to operating activities 173,237   267,618   798,628   920,722  
                 
Net changes in non-cash working capital items -                
  Decrease (increase) in accounts receivable (37,327 ) (6,637 ) 443,184   (454,687 )
  Increase in inventories 37,046   93,307   (5,405 ) 57,353  
  Decrease (increase) in prepaid expenses (92,826 ) (30,460 ) (39,470 ) (5,979 )
  (Decrease) increase in accounts payable and accrued liabilities 104,662   41,888   (285,700 ) 224,693  
Net changes in non-cash working capital balances relating to operations 11,555   98,098   112,609   (178,620 )
Cash flow relating to operating activities 184,792   365,716   911,237   742,102  
                 
Investing activities                
Additions to marketable securities -   -   -   (209,207 )
Proceeds on disposal of marketable securities -   -   -   1,404,375  
Additions to property and equipment (115,788 ) (98,349 ) (197,688 ) (203,452 )
Proceeds on disposal of property and equipment -   1,783   -   12,172  
Cash flow relating to financing activities (115,788 ) (96,566 ) (197,688 ) 1,003,888  
                 
Increase in cash and cash equivalents during the quater 69,004   269,150   713,549   1,745,990  
Cash and cash equivalents - Beginning of period 2,904,890   1,848,936   2,260,345   372,096  
Cash and cash equivalents - End of period 2,973,894   2,118,086   2,973,894   2,118,086  

Contact Information

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