International Technologies Corporation

International Technologies Corporation

June 06, 2007 19:00 ET

ITC Reports First Quarter 2007 Results, Gross Margin Increases 31%

RICHMOND, BRITISH COLUMBIA--(Marketwire - June 6, 2007) - International Technologies Corporation ("ITC") (TSX VENTURE:ITI), announced today its unaudited financial results for its first quarter ending March 31, 2007.

Revenues were $3,112,066 for the first three months of 2007 compared to $6,464,990 in the period ending March 31, 2006. Sales were affected by a decline in market prices of MP3 players to half the previous year's retail value and following GAAP, the Company complied with a change in its accounting policy offsetting product returns against sales instead of cost of goods sold as it had previously. Future industry risk has been mitigated as ITC's manufacturing partner now has two new manufacturing facilities to handle larger orders and provide better pricing to its distributors. ITC has made significant decreases in its operational expenses and plans to tighten up costs further. Two new retail accounts with the Source By Circuit City and Wal-Mart Canada and a relationship with Wellus Brazil to sell MPIO players throughout South America are expected to revitalize revenues and earnings this year.

"Our mission is profitability and providing value to our shareholders therefore we are working diligently to return to a position of sustained growth, said Michael Uhm, ITC's CEO. "In addition to decreasing costs and securing new business in North America, our South American operations are doing extremely well. We have Wellus representing our MPIO products in Brazil, and two strong regional sales partners developing markets for us in Chile, Peru, and Mexico." He continued, "South America's digital entertainment industry is still in its infancy and ITC is one of the few suppliers in this area. There is tremendous opportunity to capture market share with little competition. We plan to capitalize on this early stage opportunity."

The Company's gross margin was $876,424 or 28.1% for the three months ended March 31, 2007 compared to $1,257,048 or 19.4% a year earlier. An increase in gross margin percentage of 31% was achieved as a result of ITC's lower supply costs and higher margin product lines such as newly launched media players, mini digital speakers, portable GPS, digital picture frames and SD memory cards. ITC's gross margin consistently outperforms the industry average.

EBITDA was $308,867 or $0.02 per share for the quarter ended March 31, 2007, compared to $335,498 or $0.02 per share for the same period in 2006. ITC had net income of $141,437 or $0.01 per share for the three months ended March 31, 2007, versus $114,982, or $0.01 per share in the first quarter of 2006.

Looking forward, ITC anticipates greater volume business from existing sales channels, the addition of new retail customers and global expansion that will continue to position the Company as an innovator and leader in the electronics industry.

The complete financial results are posted on SEDAR at

About ITC

International Technologies Corporation ( is a global supplier of innovative digital audio, multi-media, home entertainment, flat screen monitors/televisions and other advanced electronics products to the consumer and commercial market place. ITC also creates private label and OEM brands for its retail partners. The Company's ability to deliver manufacturer-direct product provides savings and other significant advantages to its customers.

ITC holds the exclusive rights to distribute MPIO products to the North, Central and South American markets in addition to Mexico and Australia through its relationship with Digitalway Korea and has exclusivity on all Hansol Korea LCD monitors sold to the North American market.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development. ITC will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by ITC. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein. (This release is not a solicitation to United States residents to purchase securities in the Company).

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