MONTREAL, QUEBEC--(Marketwired - Sep 13, 2013) - IBEX Technologies Inc. ("IBEX" or the "Company") (TSX VENTURE:IBT) today reports a significant decrease in its expected earnings for the fiscal year ending July 31, 2014.
IBEX was recently advised by a major customer of its IBEX Pharmaceuticals subsidiary that it will significantly cut back its purchases over the next two years. Although IBEX is not currently in a position to precisely quantify this reduction in sales, it is expected to have a materially negative impact on the profitability of IBEX Pharmaceuticals and hence IBEX.
"One of IBEX Pharmaceuticals' inherent risks has been its reliance on a few products and a few key customers. The possibility that there might be a short or long-term change in the needs of one of those customers has always been apparent to us and was one of the reasons IBEX sought to expand its product line and customer base via acquisitions, such as the recent acquisition of Bio-Research Products Inc.", said Paul Baehr, President and CEO of IBEX.
As at the date of its last publicly-filed disclosure (Q3/Fiscal 2013), IBEX reported cash, cash equivalents & short-term investments of $1,367,333 and working capital of $2,570,941. IBEX expects that it has sufficient resources to withstand the impact of this sales reduction throughout Fiscal 2014.
IBEX, through its wholly owned subsidiaries IBEX Pharmaceuticals Inc. (Montreal, QC) and the recently acquired Bio-Research Products Inc. (North Liberty, IA), manufactures and markets proteins for biomedical use. IBEX Pharmaceuticals 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 three products and five customers, the loss of any of which could have a material effect on its profitability.