IBEX Technologies Inc. (TSX VENTURE: IBT), today reported its
financial results for the year ended July 31, 2010.
FINANCIAL RESULTS FOR THE FISCAL YEAR
"As expected, the Company strengthened its balance sheet during
Fiscal 2010, while sales and profits decreased due to changes in
currency and a tough US economy which affected some of our major
customers' ordering patterns" said Paul Baehr, IBEX President and
CEO. "We expect the weak business environment in our respective
markets to continue in Fiscal 2011 before recovering in Fiscal
2012", said Baehr.
Our total cash, cash equivalents, and marketable securities
improved 34% over the year to $3,033,556 from $2,260,344. Working
capital improved to $3,287,875 as at July 31, 2010 from $2,881,146
as at July 31, 2009.
Sales for the year ended July 31, 2010 were $2,628,746 compared
to $3,544,282 for the same period in the prior year, representing a
decrease of 26%. The net decrease of $915,536 in sales vs. year ago
was mainly due to changes in currency, ($586,105) and to a downturn
in volume ($329,432) stemming from a reduction in orders from one
of our major customers who apparently has an excess inventory due
to reduced sales in the US hospital market.
Expenses for the year ended July 31, 2010 decreased $78,160 (4%)
to $2,122,384. Expenses did not decline in proportion to sales due
to the fixed cost nature of the IBEX business.
Net earnings for the year ended July 31, 2010 were $506,362,
compared to net earnings of $1,343,738, for the previous fiscal
year. It is worth mentioning that, Fiscal 2009 was an unusual year,
benefitting from a high US dollar, profits from our successful
currency hedging program ($386,534) along with strong sales, a
combination of events which was not forecasted to repeat in Fiscal
2010).
Financial Summary for the year ending:
--------------------------------------------------------------------------
July 31, July 31,
2010 2009
Revenues $2,628,746 $3,544,282
Earning Before Interests, Tax, Depreciation &
Amortization $624,367 $1,409,367
Depreciation & Amortization $131,161 $83,810
Net Earnings $506,362 $1,343,738
Net Earnings per Share $0.02 $0.05
Cash, Cash Equivalents & Marketable Securities $3,033,556 $2,260,344
Working Capital $3,278,875 $2,881,146
Outstanding shares at report date (Common
Shares) 24,703,244 24,703,244
FINANCIAL RESULTS FOR THE FOURTH QUARTER
Cash, cash equivalents, and marketable securities increased 2%
during the quarter to $3,033,556. The Company's working capital
decreased 6% during the quarter to $3,278,875 (down from $3,482,086
as at the end of the prior quarter ending April 30, 2010) due to
accrued expenses (which increased the current liabilities) and
impact of lower sales (which reduced receivables).
Sales for the quarter ended July 31, 2010 totaled $641,550, a
decrease of 26% as compared to $863,691 in the same period year
ago. Excluding the currency impacts, enzymes sales increased 26%
versus the previous quarter but have decreased 13% versus the same
quarter year ago. Sales of arthritis assays were equal to last
year's same quarter, although down 24% vs. the previous
quarter.
Expenses excluding the foreign exchange gain, write-off and gain
on asset disposal, as compared to year ago, increased to $736,115
from $543,678 in the same quarter a year ago. The increase in
expenses is due to several factors such as a non-cash entry related
to the grant of stock options, higher amortization expense, higher
inventory allocation and expenses related to new R&D projects.
Included in the Q4 expenses was a reversal of a reserve the Company
had taken some years ago in connection with a disposal of
assets.
Net loss for the quarter ended July 31, 2010 was $128,436,
compared to net earnings of $474,632, for the fourth quarter of
fiscal year 2009.
Despite lower sales and the weakness of the US dollar, the
decrease in reported net earnings for the fourth quarter of Fiscal
2010 when compared to the same period a year ago, is largely
attributable to a non-cash calculation related to granted stock
options ($51,052) and a higher inventory allocation cost ($100,963)
as well as higher amortization expenses ($37,534) due to the
purchases of equipment and to the commencement of new R&D
projects ($42,367).
LOOKING FORWARD
Fiscal 2011 looks to be a difficult year for IBEX's major US
customers, and therefore for IBEX. Additionally, the Canadian
dollar is forecast to remain strong against the US dollar, which
does not work in our favour. We therefore do not expect to have
positive net earnings in Fiscal 2011, but expect to return to
profitability in Fiscal 2012, as the US economy improves.
Despite difficult outlook for Fiscal 2011 we will continue to
invest in the future. IBEX will add additional manufacturing
capacity, and will continue with the development of our improved
immuno- assays, which are scheduled for introduction in calendar
2011, with benefits accruing in Fiscal 2012.
ABOUT IBEX
The Company manufactures and markets a series of proprietary
enzymes (heparinases and chondroitinases). These enzymes are used
in pharmaceutical research, quality assurance, and in the case of
Heparinase I, in diagnostic devices which measure hemostasis in
patients.
IBEX also manufactures and markets a series of arthritis assays
which are widely used in pharmaceutical research. These assays
enable the measurement of both the synthesis and degradation of
cartilage components, and are powerful tools in the study of osteo-
and rheumatoid arthritis.
For more information, please visit the Company's web site at
www.ibex.ca.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release
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.
Contacts: IBEX Technologies Inc. Paul Baehr President & CEO
514-344-4004 x 143 514-344-8827 (FAX) www.ibex.ca
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