Epicore BioNetworks Inc. Reports Results for 2010 Quarter One
for the period ended
- Revenue for the quarter (at $0.7 million) 14% lower than Q1 last year. - Gross profit lower than last year's Q1 by 18%. - Higher year-on-year quarterly operating expenses by 28%. - Net income 89% lower than Q1 last year. - Basic and diluted earnings per share decreased by $0.01. - Shareholders' equity increased 11% over the prior year's comparative quarter. - Cash inflow of $0.06 million significantly higher than last year's Q1 cash outflow of $0.09 million.
The most severe economic downturn since the Great Depression continues to adversely affect Epicore's business. Aquaculture remains the Company's strongest market sector, producing 97% of total sales. While most Epicore customers adjusted to the economic conditions and reduced inventory levels throughout the year, a few key ones entered quarter one with higher than expected stock of unsold products. Several strong buyers in 2008 have been slow to gear up for 2010. The world shrimp market maintains a cautious approach to 2010. However, USA shrimp imports have been increasing since March.
The Epicore sales team adjusted to changing market conditions and redoubled efforts to add new customers and to explore new applications. One result was a much broader pond sales program in
Gross profit decreased due to the sales revenue decrease and to product mix. Operating expenses increased 28% over prior year. Research and development expenses were
(US$) 2010 2009 ---- ---- Sales 697,000 808,000 Gross Profit 432,000 524,000 Expenses 399,000 313,000 Other Income (Expense) (9,000) (9,000) Income Taxes 4,000 25,000 Net Income 20,000 177,000
Cash at the end of September was
With these funds, expected sales revenue and continued control of operating costs, management expects there will be sufficient cash to meet the fiscal year's financial requirements.
The financial statements of the Company have been prepared in accordance with Canadian GAAP. Epicore BioNetworks Inc. is a public corporation with a registered office in
(Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.)
About Epicore
Epicore BioNetworks Inc. (TSXV: EBN) is a leading developer, manufacturer and marketer of innovative, environmentally responsible biotechnology products based on the use of natural microbes and enzymes. Epicore's product lines are applicable in aquaculture, agriculture, bioremediation and wastewater treatment, municipal services and cleaning. The cost effectiveness, premium quality and customer service offered by Epicore have attracted a growing and devoted customer base of end customers and distributors in twenty-nine countries worldwide. With a registered office in
Forward Looking Statements
This press release contains forward-looking statements that involve significant risks and uncertainties, such as the one about having sufficient cash to meet the fiscal year's financial requirements. This statement is based on the assumption that the Company¡¦s sales will continue as expected. The actual results, performance or achievements of the Company might differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such forward-looking statements include, without limitation, those regarding the development plans of the Company and the expected timing and results of such development. We can provide no assurance that such development will proceed as currently anticipated or that the expected timing or results of such development will be realized. We are subject to various risks, including the uncertainties of product development, markets for our products and regulatory review, our need for additional capital to fund our operations, our reliance on collaborative partners, our history of losses, and other risks inherent in the biotechnology industry.
For further information: Company Contact: William P. Long, Chief Executive Officer, Epicore BioNetworks Inc., (609) 267-9118, [email protected]
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