MONTREAL, QUEBEC , today reported its financial results for the
third quarter and nine months ended April 30, 2008.
FINANCIAL RESULTS
Solely for the convenience of the reader, selected financial
results expressed in Canadian dollars on the financial statements,
have been translated into U.S. dollars at the April 30, 2008
month-end rate C$1.00 equals US$ 0.9928. This translation should
not be construed as an application of the recommendations relating
to the accounting for foreign currency translation, but rather as
supplemental information for the reader.
Results for the Quarter
Sales for the three-month period ended April 30, 2008 totaled
$712,997 (US$707,860) compared to $551,768 in the third quarter of
fiscal 2007, representing an increase of 29%.
Net profit for the third quarter of fiscal 2008 was $259,269
(US$257,400) or $0.01 per share, compared to a net loss of $815,603
or ($0.04) per share for the same period in fiscal 2007.
In addition to sales gains, the Company's profit improvement can
be traced to significantly reduced operating costs, from $1,367,765
in the prior year to $453,752 in the current quarter, due to a cost
reduction program which included, among other things, the decision
to terminate the research and development activities related to its
arthritis and cancer programs.
"The results for the quarter were enhanced by the recent
industry crisis regarding heparin, leading to an increase in sales
of the Company's heparinase products useful in the identification
of heparin contaminants" said Paul Baehr, President and CEO.
The heparin contamination issue presents a unique opportunity
for the use of IBEX pure recombinant enzymes and as a result IBEX
has commenced development of an easy-to-use enzyme-based assay to
measure chondroitin contamination.
Results for the Nine Months
Sales for the nine-month period ended April 30, 2008 totaled
$1,816,800 (US$1,803,720) compared to $1,454,113 for the same
period in the prior year, representing an increase of 25%.
Net profit for the nine-months ended April 30, 2008 was $158,622
(US$157,480) or ($0.01) per share compared to a net loss of
$1,900,938 or ($0.08) per share for the same period in fiscal
2007.
A significant contributor to the year to date profit (versus the
net loss same period of the prior year) is a reduction of the
company's operating expenses from $3,567,237 to $1,655,261 due to
the previously mentioned cost reduction program.
Working Capital
The Company's working capital was $1,629,408 as at the end of
the quarter, in-line with the guidance provided at the time of the
restructuring announcement and up from $1,338,625 as at the end of
the prior quarter ending January 31, 2008 (and compared to
$1,403,321 as at July 31, 2007).
LOOKING FORWARD
IBEX has been successful in bringing its existing business to
profitability and is now turning its attention to growth
opportunities, including opportunities to maximize shareholders'
value through discussions with companies interested in the IBEX
infrastructure and its accumulated tax loss carry-forwards.
ABOUT IBEX
The Company markets a series of proprietary enzymes (heparinases
and chondroitinases) for research use, as well Heparinase I, which
is used in many leading hemostasis monitoring devices.
IBEX also markets a series of arthritis assays which are widely
used in pharmaceutical research. These assays are based on the
discovery of a number of specific molecular biomarkers associated
with collagen synthesis and degradation.
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
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April 30, July 31,
unaudited 2008 2007
--------------------------------------------------------------------------
$ $
ASSETS
Current assets
Cash and cash equivalents 1,398,745 348,752
Marketable securities (note 3) - 1,099,673
Accounts receivable 345,138 500,509
Inventories 173,121 164,384
Prepaid expenses 133,065 135,014
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Sub-total Current Assests 2,050,069 2,248,332
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Property and equipment 255,919 303,271
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TOTAL ASSETS 2,305,988 2,551,603
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LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 420,661 845,011
--------------------------------------------------------------------------
Sub-total Current Liabilities 420,661 845,011
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TOTAL LIABILITIES 420,661 845,011
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SHAREHOLDERS' EQUITY
Capital stock (note 4) 52,660,078 52,660,078
Contributed surplus (note 4) 399,975 375,151
Profit (Deficit) (51,174,727) (51,328,637)
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TOTAL SHAREHOLDER'S EQUITY 1,885,327 1,706,592
--------------------------------------------------------------------------
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TOTAL LIABILITIES & SHAREHOLDER'S EQUITY 2,305,988 2,551,603
--------------------------------------------------------------------------
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CONSOLIDATED STATEMENTS OF DEFICIT
--------------------------------------------------------------------------
For the nine months ended April 30 (unaudited) 2008 2007
--------------------------------------------------------------------------
$ $
Balance - Beginning of period (51,328,637) (43,918,975)
Transition adjustment on adoption of financial
instrument standard (note 2) (4,711) -
--------------------------------------------------------------------------
Restated balance - Beginning of period (51,333,348) (43,918,975)
Net profit (Net loss) year to date 158,622 (7,409,662)
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Balance - End of period (51,174,727) (51,328,637)
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CONSOLIDATED STATEMENTS OF EARNING (LOSS)
Three months ended Nine months ended
April 30th April 30th
--------------------------------------------------------------------------
(unaudited) 2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
Revenue 712,997 551,768 1,816,800 1,454,113
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Operating expenses
Cost of good solds (200,821) (228,527) (735,318) (643,542)
Net research and
development expenditure
(note 7) 39,427 (372,938) 39,427 (986,805)
Selling, general and
administrative expenses (265,704) (723,584) (926,200) (1,925,728)
Amortization of property
and equipment (15,763) (33,497) (49,677) (100,409)
Amortization of
identifiable intangible
assets - (809) - (2,427)
Other interest and bank
charges (3,266) (8,435) (7,703) (24,266)
Foreign exchange loss
(note 6) (15,749) (48,872) (22,646) (27,785)
Investment income 8,124 48,897 36,857 143,725
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Total operating expenses (453,752) (1,367,765) (1,665,261) (3,567,237)
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259,245 (815,997) 151,540 (2,113,124)
Current Income taxes (24) (394) (7,082) (212,186)
--------------------------------------------------------------------------
Net profit (loss) 259,269 (815,603) 158,622 (1,900,938)
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Net profit (loss) per
share
Basic and diluted $0.01 $(0.04) $0.01 $(0.08)
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CONSOLIDATED CASH FLOW STATEMENTS
Three months ended Nine months ended
April 30th April 30th
--------------------------------------------------------------------------
(unaudited) 2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
Cash flows provided by
(used in):
Operating activities
Net profit (loss) for the
period 259,269 (815,603) 158,622 (1,900,938)
Items not affecting cash -
Amortization of property and
equipment 15,763 42,270 49,678 126,726
Amortization of identifiable
intangible assets - 71,308 - 213,922
Stock-based compensation
costs 17,150 4,520 24,824 21,040
Accretion of interest on
balance of payments - 4,550 - 13,650
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Cash flow relating to
operating activities 292,182 (692,955) 233,124 (1,525,600)
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Net changes in non-cash
working capital items -
Decrease in accounts
receivable 26,770 52,917 155,371 109,845
Decrease (increase) in
inventories (58,963) 22,595 (8,737) 63,790
(Increase) decrease in
prepaid expenses (45,903) (48,174) 1,949 (19,932)
(Decrease) increase in
accounts payable and
accrued liabilities 119,689 358,827 (429,061) 56,117
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Net changes in non-cash
working capital balances
relating to operations 41,593 386,165 (280,478) 209,820
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Cash flow relating to
operating activities 333,775 (306,790) (47,354)(1,315,780)
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Investing activities
Additions to marketable
securities - (2,001,239) - (5,640,573)
Proceeds on disposal of
marketable securities - 4,290,850 1,099,673 9,315,062
Additions to property and
equipment (1,400) (550) (2,326) (8,573)
Increase in other assets - (360,371) - (1,000,000)
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Cash flow relating to
financing activities (1,400) 1,928,690 1,097,347 2,665,916
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Increase in cash and cash
equivalents during the year 332,375 1,621,900 1,049,993 1,350,136
Cash and cash equivalents -
Beginning of period 1,066,370 544,688 348,752 816,452
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Cash and cash equivalents -
End of period 1,398,745 2,166,588 1,398,745 2,166,588
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The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release
Contacts: IBEX Technologies Inc. Paul Baehr President & CEO
514-344-4004 ext 147 www.ibex.ca
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