International Technologies Corporation
TSX VENTURE : ITI

International Technologies Corporation

June 09, 2008 16:44 ET

ITC Reports First Quarter 2008 Results

RICHMOND, BRITISH COLUMBIA--(Marketwire - June 9, 2008) - International Technologies Corporation ("ITC") (TSX VENTURE:ITI), today reported its unaudited financial results for the first quarter ending March 31, 2008.

Revenues were $1,088,951 for the first three months of 2008 compared to $3,112,066 in the period ending March 31, 2007. The Company had contracted a backlog of orders worth over $2.0 Million however due to production and supplier delays, it was unable to convert the orders into revenue.

"As we maintain a strong commitment to reshaping and restructuring the company, we are diligently working with suppliers to execute supply and distribution agreements that will add more product lines and reduce operating costs," said Michael Uhm, President and CEO. He continued, "Despite the obstacles, we continue to seek out and intend to implement strategic methods of growth. Our restructuring plan includes direct ownership of digital manufacturers and implementing promotional programs that will enhance the prominence of our brands."

ITC has been working with suppliers on new product lines and anticipates launching later in the year a "water free" digital audio / video player and an ICD player enabling downloads directly from compact discs resulting in higher sound quality.

The Company's gross margin was $78,204 for the three months ended March 31, 2008 compared to $876,424 or 28.1% a year earlier. The decrease in gross margin is a direct result of the company's Korean supplier neglecting its obligations, as mentioned above. In the short term, the Company was forced to source products from other manufactures which resulted in lower gross margins. ITC has subsequently established commitments with new suppliers enabling it to maintain margins in the future as it had in previous years.

EBITDA was ($318,856) or ($0.02) per share for the quarter ended March 31, 2008, compared to $222,734 or $0.01 per share for the same period in 2007. ITC had a net loss of ($323,939) or ($0.02) per share for the three months ended March 31, 2008, versus $141,437 or $0.01 per share in the first quarter of 2007.

In 2008, ITC anticipates aligning itself with new suppliers, introducing new products, increasing its retail customer roster and executing on global expansion opportunities to increase its overall performance.

A copy of the complete financial results is posted on SEDAR at www.sedar.com.

About ITC

International Technologies Corporation (www.itcco.com) 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.

(This release is not a solicitation to United States residents to purchase securities in the Company).

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

Contact Information

  • International Technologies Corporation
    Loa Fridfinnson
    (604) 687-2004 or Toll Free: 1-800-303-3367
    Email: ir@itcco.com
    or
    International Technologies Corporation
    Mr. Fred Baldwin
    Chief Financial Officer
    (604) 247-1202
    Email: fbaldwin@itcco.com
    Website: www.itcco.com