IBEX Reports Results for the Six Months Ended January 31, 2012

Marketwired

MONTREAL, QUEBEC--(Marketwire -03/28/12)- IBEX Technologies Inc. (TSX-V: IBT.V - News) today reported its financial results for the six months ended January 31, 2012.

FINANCIAL RESULTS FOR THE YEAR TO DATE

Sales for the six months ended January 31, 2012 totaled $1,344,892, an increase of 51% as compared to $888,625 for the same period in the prior year. As mentioned previously, this increase in sales is principally due to a return to a normal pattern in orders in the enzymes product lines.

Net earnings for the six months ended January 31, 2012 were $86,186, compared to a net loss of $331,218, for the same period in previous fiscal year. This increase is mainly attributable to 51% increase in sales.

Expenses (excluding interest, depreciation and amortization) for the six months ended January 31, 2012 increased 6%, to $1,191,212 from $1,125,036, principally due to a higher inventory allocation (inventory allocation is the transfer of non-variable labour and fixed overheads to and from the balance sheet as a result of producing in current quarter for sale in future quarters).

"We are pleased to see enzyme related sales resume a normal pattern", said Paul Baehr, IBEX President and CEO "and we anticipate that the current new arthritis assays will return that product line to at least the same strong levels we experienced in 2010".

FINANCIAL RESULTS FOR THE SECOND QUARTER OF FISCAL 2012

Sales for the quarter ended January 31, 2012 totaled $592,428, an increase of 58% as compared to $375,650 in the same period of the prior year. The increase in sales can be attributed to a return to a normal ordering pattern for our enzymes products.

The Company recorded a net loss of $58,566 in its second quarter ended January 31, 2012 compared to a net loss of $153,280 for the same period year ago.

Expenses (excluding interest depreciation and amortization) increased to $683,146 from $506,100. This increase in expenses is attributable to a higher business activity level as well as a lower inventory allocation.

Cash, cash equivalents, and marketable securities remained unchanged during the quarter ended January 31, 2012 at $2,436,587 from $2,425,920 as of October 31, 2011. The Company's working capital was also essentially unchanged at $2,951,373 versus $2,988,091 as at the end of the prior quarter ending October 31, 2011.

 

Financial Summary for the six months ending
----------------------------------------------------------------------------
                                                  January 31,   January 31,
                                                         2012          2011
                                                ----------------------------
Revenues                                        $   1,344,892  $    888,625
Earnings (Loss) Before Interests, Tax,
 Depreciation & Amortization                    $     147,786  $   (268,816)
Depreciation & Amortization                     $      83,692  $     67,659
Net earnings (Loss)                             $      86,186  $   (331,218)
Earnings (Loss) per Share                       $        0.00  $      (0.01)
Cash, Cash Equivalents & Marketable Securities  $   2,436,587  $  2,231,287
Working Capital                                 $   2,951,373  $  2,598,828
Outstanding shares at report date (Common
 Shares)                                           24,703,244    24,703,244

LOOKING FORWARD

Despite the return to relative normalcy in the enzyme line, sales in the arthritis line remain volatile. Over the next few months IBEX will be introducing two new osteoarthritis assays. These assays will be more suitable for use by our customers in pre-clinical and clinical osteoarthritis studies. While IBEX anticipates successful market introduction of these assays, we do not expect to see financial benefit until the later part of 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.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact:

Paul Baehr
President & CEO
IBEX Technologies Inc.
514-344-4004 x 143

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