MARKHAM, ONTARIO--(Marketwire - Mar 1, 2013) - iFabric Corp (TSX VENTURE:IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for the first quarter ended December 31, 2012. iFabric has a year end of September 30.
For the quarter ended December 31, 2012, revenues increased to $1,185,751 compared to $1,104,230 for the first quarter of 2011, representing an increase of 7%. Gross profit for the quarter was $652,248 compared to $613,223 for the corresponding quarter of 2011. Gross profit margins of 55% were achieved in both the current and comparable quarter for 2011.
Net profit for the quarter was $12,411, compared to a profit of $128,696 in the corresponding first quarter of 2011. The reduction in net profit is largely attributable to selling, design and administrative costs of approximately $142,000 in respect of the new "Splendid Intimates" and "Ella Moss" programs, which have been expensed ahead of initial sales of these products which commenced shipping subsequent to the quarter end.
The Company''s Balance Sheet remains strong. With working capital of $3,745,329 and no operating debt, the Company is well capitalized to fund its operations. Shareholders'' Equity increased to $4,784,974 during the quarter.
Positive cash flow for the current quarter amounted to $290,323 as compared to negative cash flow of $331,164 in 2011 and is attributable to strong collections of receivables during the quarter.
"I am pleased to say that the investment that the company has made in the past year in the company''s core business, namely intimate apparel which, includes bras, panties, day wear and sleepwear and in particular, the launch of "Splendid Intimates", is already showing significant results, with shipments having commenced in early February 2013. Sales for the two months ended February 28th 2013 have already surpassed sales for the entire comparable quarter in the previous year. Furthermore, we have received extremely encouraging reports of initial sell through results from our major customers evidencing how well their customers are receiving the new products", said Mr. Hylton Karon, President and CEO.
"Our intelligent fabric technology division continues to be a key component and focus of the company and has attracted global brands as potential customers, who have shown keen interest in Cliniweave. Additionally, the Company has developed several new key products and innovative applications for Cliniweave. We are confident that the Company''s investment in the intelligent fabric division will show meaningful results in the near future", added Mr. Karon.
CLINIWEAVE is effective against a wide range of micro-organisms including mold, mildew, fungi and odor causing bacteria. It provides long-term, effective control of microorganisms. This efficacy and safety has been documented in numerous peer reviewed publications, trade articles and certified tests. It is durable to deterioration through repeated washing and is clinically proven to kill bacteria associated with hospital acquired infections. Medical facility uses for Cliniweave include bedding, curtaining, air filters, scrubs, masks and surfaces amongst others.
Complete Financial Statements are available on www.sedar.com.
|3 months ended December 31|
|Net income (loss)||12,411||128,696|
|Net income (loss) per share||0.00||0.01|
ABOUT iFABRIC CORP:
iFABRIC CORP currently has 25.2 million shares issued and outstanding. iFABRIC is a manufacturer, distributor, licensor and licensee of ladies intimate apparel products and accessories as well proprietary chemical compounds that render fabrics intelligent, thereby improving the safety and well-being of the wearer.
FORWARD LOOKING STATEMENTS
Forward-looking statements provide an opinion as to the effect of certain events and trends on the business. Certain statements contained in this news release constitute forward looking statements. The use of any words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Forward-looking information includes, but is not limited to, statements with respect to the development potential of the Company''s products.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Readers are cautioned not to place undue reliance on these statements as the Company''s actual results, performance, or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company''s business, or if the Company''s estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason except as required by applicable securities laws.
Any financial outlook or future oriented financial information in this news release, as defined by applicable securities legislation, has been approved by management of iFabric. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management''s reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward -looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.