International Technologies Corporation
TSX VENTURE : ITI

International Technologies Corporation

November 29, 2007 18:14 ET

ITC Reports Third Quarter 2007 Results

RICHMOND, BRITISH COLUMBIA--(Marketwire - Nov. 29, 2007) - International Technologies Corporation ("ITC" or "the Company") (TSX VENTURE:ITI) announced unaudited financial results for its third quarter ending September 30, 2007.

Consolidated revenues were $2,370,383 for the three months ending September 30, 2007 compared to $4,886,232 for the corresponding quarter in 2006. Sales continue to be affected as industry prices in consumer electronics struggle to find a bottom due to lower cost producers flooding the market and falling technology costs in general.

In addition, a leading brand of MP3 players launched its product line earlier than expected in the retail buying cycle creating great confusion in category planning and a retail price decline. This caused other digital suppliers to discount their products to remain competitive. These events are taking longer than expected to resolve and industry participants in all areas are feeling the pinch. ITC is pressing on with its business planning for next year and is anticipating a turn around situation in 2008.

The Company reported gross margin of $626,456 or 26.4% for the three months ending September 30, 2007 versus $975,288 or 19.9% in the previous year which resulted in an increase in margin percentage of 6.5%. ITC realized significant savings on purchases given the stronger Canadian dollar.

EBITDA was ($358,842) or ($0.02) per share for the three months ended September 30, 2007, compared to $353,352 or $0.02 per share in the same period ending 2006. The Company experienced a net loss of ($654,386) or ($0.04) per share in the quarter ending September 30, 2007 compared to $132,457 or $0.01 per share in the same quarter of 2006. During the third quarter, the Company under GAAP wrote off two long term assets and one long term liability resulting in a one time net loss off ($599,763). Adjusted EBITDA for this write off would have been $240,921 and $0.01 per share.

"We are experiencing a challenging time in our business however, the Company is resilient and confident that prices will stabilize. ITC maintains its commitment to supplying the market with innovative quality products at affordable price points and unsurpassed customer/channel support which continues to set us apart, " said Michael Uhm, CEO of ITC.

Complete financial results are 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 products 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

  • Activ8 Corporate Relations
    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