International Technologies Corporation

International Technologies Corporation

November 27, 2006 09:00 ET

ITC Reports Third Quarter 2006 Results

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Nov. 27, 2006) - International Technologies Corporation ("ITC" or "the Company") (TSX VENTURE:ITI) announced unaudited financial results for its third quarter ending September 30, 2006.

Consolidated revenues were $4,886,232 for the three months ending September 30, 2006 compared to $7,515,732 for the corresponding quarter in 2005. The Company's sales in the third quarter were impacted by two significant events in the digital audio sector. A market leading supplier launched new MP3 products at prices significantly lower than current retail pricing placing severe downward pressure on the selling price of other digital audio suppliers. This resulted in declining unit prices of up to 40% industry wide. Other MP3 suppliers were then forced to price match. Inventory left in the retail channels were further reduced resulting in major discounts to clear out older stock. The decline in industry prices of digital audio players greatly affected sales of all MP3 suppliers, including ITC.

In addition to price fluctuations, the Company's manufacturer moved its plant to a larger factory in China to facilitate increasing orders and provide better costing structure. An interruption of production occurred in the third quarter due to the move which caused some unfilled purchase orders. Although the Company has experienced a temporary contraction period, steps have been taken to decrease further potential market risk through a larger factory and a second plant planned for December 2006. Both factories are expected to be fully operational in the first quarter of 2007.

"The foundation is in place to increase future production and add to our existing portfolio of home and portable entertainment products," stated Michael Uhm, ITC's CEO. "We remain optimistic for the Company's twelve month performance and are focused on profitable and sustainable growth going into the new year."

ITC reported gross margin of $975,288 or 20% for the three months ending September 30, 2006 versus $1,488,617 or 20% in the previous year. The Company had EBITDA of $353,352 or $0.02 per share for the three months ending September 30, 2006 in comparison to $631,361 or $0.04 per share in the third quarter a year earlier.

ITC's earnings before taxes were $172,457 for the three months ending September 30, 2006, versus $450,136 for the corresponding quarter in 2005. Net earnings were $132,457 or $0.01 per share in the quarter ending September 30, 2006 compared to $419,136 or $0.04 per share in the quarter ending September 30, 2005.

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 products provides savings and other significant advantages to its customers.

ITC holds the exclusive rights to distribute MPIO products to the North, Central, South American, Mexican and Australian markets 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.

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