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IBEX Reports First Quarter Fiscal 2014 Results

MONTREAL, QUEBEC--(Marketwired - Dec 19, 2013) - IBEX Technologies Inc. (TSX VENTURE:IBT) today reported its financial results for the quarter ended October 31, 2013.

"Sales for the period were up 16% versus year ago due to a positive quarter for arthritis assays (up 90%), heparinase-based diagnostic components (up 3%) and the inclusion of sales from the newly acquired Bio-Research Products Inc. (acquired on December 31, 2012). Sales for enzyme reagents however were down 50% due to the previously reported hiatus in purchasing by a major customer", said Paul Baehr, IBEX President and CEO."As a consequence, the Company reports a significant loss in the quarter compared to year ago".


Sales for the quarter ended October 31, 2013 totaled $879,116 compared to $754,338 in the same period of the prior year. This year's figure included sales of $282,121 from Bio-Research Products Inc. (BRP) which did not appear in the year ago results.

The Company recorded a net loss of $404,019 compared to net earnings of $68,670 for the same period year ago. This decrease in net earnings is attributable to a loss in IBEX Pharmaceuticals Inc. of $199,609 (due to lower sales of IBEX enzyme reagents) and a loss of $204,410 at BRP.

Operating Summary for the Quarters Ended October 31,
October 31,
Revenues $879,116 $754,338
(Loss) earnings before interests, tax, depreciation & amortization ($292,405 ) $100,243
Depreciation & amortization $102,330 $40,467
Net (loss) earnings ($404,019 ) $68,670
(Loss) earnings per share basic and diluted ($0.02 ) $0.00

Cash and cash equivalents increased $146,717 during the quarter ended October 31, 2013 as compared to the year ended July 31, 2013. The Company's net working capital decreased $333,415 during the quarter ended October 31, 2013 as compared to previous quarter, mainly due to a reduction in trade and other recievables.

Balance Sheet Summary as at October 31,
July 31,
Cash and cash equivalents $1,726,356 $1,579,639
Working capital $2,179,492 $2,512,907
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 will be hiatus in sales from one of our major customers (due to excess inventory on their side) resulting in a cut back in 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 expects that its new acquisition, BRP, will be cash neutral in Fiscal 2014 and cash positive 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 the latter part of Fiscal 2014. 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 the recently acquired 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 three products and five customers, the loss of any of which could have a material effect on its profitability.