MONTREAL, QUEBEC--(Marketwired - Mar 25, 2014) - IBEX Technologies Inc. (TSX VENTURE:IBT) today reported its financial results for the six months ended January 31, 2014.
"Business conditions continue to be challenging for IBEX, due primarily to one major customer's purchasing hiatus and the on-going post-acqusition investment in Bio-Research Products" said Paul Baehr, IBEX President and CEO, "but our financial position continues to be sound. The effect of cost containment measures at BRP should begin to materialize in the upcoming quarters".
SECOND QUARTER FISCAL 2014 FINANCIAL RESULTS
Sales for the quarter ended January 31, 2014 totaled $922,007 compared to $741,666 in the same period of the prior year. The current period included IBEX Pharma sales of $745,250 (compared to $635,026 in the year ago period) and Bio-Research Products Inc. (BRP) sales of $176,757 (compared to $106,640 in the year ago period, which included only one month of BRP sales).
The loss for the period was $2,922 compared to a loss of $468,277 in the year ago period. The reduction in loss is mainly attributable to IBEX Pharma which had net earnings of $168,273, offset by a loss in BRP of $171,195. The BRP operating loss for this period included three months' activity compared to one month's activity for the same period year ago.
FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JANUARY 31, 2014
Sales for the six months ended January 31, 2014 totaled $1,801,123, an increase of 20% compared to the same period in 2013 ($1,496,004). IBEX Pharma sales were $1,342,245 compared to $1,389,364 in the year ago period. BRP sales were $458,878 compared to $106,640 in the year ago period, however this result includes six months of sales from BRP compared to one month of sales for the same period year ago.
The Company recorded a net loss of $406,941 compared to a net loss of $399,607 for the same period year ago. The principle part of this loss derived from BRP which had an operating loss of $375,604.
|Operating Summary for the Six Months Ended||January 31, |
|January 31, |
|(Loss) before interests, tax, depreciation & amortization||($184,603||)||($305,753||)|
|Depreciation & amortization||$202,992||$102,910|
|(Loss) per share basic and diluted||($0.02||)||($0.02||)|
Cash and cash equivalents decreased $190,377 during the six months ended January 31, 2014 as compared to the year ended July 31, 2013. The Company's net working capital decreased by $199,303 during the six months ended January 31, 2014 as compared to same period year ago.
|Balance Sheet Summary as at||January 31, |
|July 31, |
|Cash and cash equivalents||$1,389,262||$1,579,639|
|Outstanding shares at report date (Common shares)||24,703,244||24,703,244|
Fiscal 2014 and Fiscal 2015 will be challenging years for the Company. As previously announced, there is a hiatus in sales from one of our major customers (due to excess inventory on their side) resulting in a cut back in their purchases over the next two years. In the event the Company is not able to replace the sales from this major customer with new contracts, it will not be in a cash flow positive position in Fiscal 2014, and possibly in Fiscal 2015.
The Company has been working on a number of projects with major customers, some of which it hopes will result in significant revenue in Fiscal 2015. However, we cannot be certain that any of these projects will in fact come to fruition.
Management believes that the Company has sufficient funds to meet its obligations and planned expenditures for the ensuing twelve months as they fall due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period.
IBEX, through its wholly owned subsidiaries IBEX Pharmaceuticals Inc. (Montreal, QC) and Bio-Research Products, Inc. (North Liberty, IA), manufactures and markets proteins for biomedical use. IBEX Pharmaceuticals Inc. also manufactures and markets a series of arthritis assays which are widely used in osteoarthritis research.
For more information, please visit the Company's website at www.ibex.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts 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, as they are based on the current assessment or 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, except if required by applicable laws.
In addition to the risk factors identified above, IBEX is, and has been in the past, heavily reliant on a few key products and customers, the loss of any of which could have a material effect on profitability.