Epicore BioNetworks Inc. Strong Start to Fiscal Year 2011 for the period
ended 30 September 2010
CALGARY, Nov. 29 /CNW/ - As the world slowly recovers from a severe economic downturn Epicore has grown strongly. Sales at $1.0 million set a quarter one Company record and were 47% above prior year quarter one. Demand for shrimp has been high throughout 2010. Shrimp prices have risen significantly due to supply shortages caused by disease and natural disasters. Producers have relied on Epicore products to deliver higher productivity from hatcheries and farms. The Epicore sales team and our distributors continued to add new customers and to pursue new applications for Epicore products. Epicore continued a major initiative to improve its science resources, which should position the Company for significant future growth and increase the reliability of its manufacturing operations. Some highlights versus prior fiscal year were:
- Increased sales from $0.7 million to $1.0 million (a 47% increase).
- Increased gross profit from $0.4 million to $0.6 million (a 44% increase).
- Generated another year of positive net income ($0.09 million or 411% above prior year).
- Increased net income as a percentage of sales revenue from 2.8% to 9.2%.
- Achieved basic and diluted earnings per share of $0.004, up from $0.001.
- Increased shareholders' equity from $2.3 million to $3.8 million (a 61% increase).
- Higher cash of $1.2 million compared to $0.9 million in prior year quarter one (a 40% increase).
Gross profit grew 44% primarily due to the sales increase. Because of sales mix Epicore gross margin decreased slightly. Operational expenses increased by 4% due to inflationary increases. In fiscal 2010 Epicore recognized its $0.89 million of net operating loss as a future income tax asset. Because the NOL was no longer available to offset income before tax, these quarter one fiscal 2011 results include a US federal income tax expense of $0.07 million, along with $0.03 million for New Jersey and Ecuadorian taxes. Even with this booked expense, Epicore recorded net income growth of 411% over fiscal 2010, as the following results show:
(US$) | 2010 | 2009 | |
Sales | 1,024,000 | 696,000 | |
Gross Profit | 621,000 | 432,000 | |
Operating Expenses | 418,000 | 401,000 | |
Other Income (Expense) | (8,000) | (9,000) | |
Income Tax Expense | 104,000 | 4,000 | |
Net Income (Loss) | 91,000 | 18,000 |
Cash at the end of September was $1.2 million, an increase of 40% over prior year quarter one. With these funds, expected sales revenue growth and continued relatively low operating costs, management expects there will be sufficient cash to meet the fiscal year's financial requirements, to fund expansion of aquaculture and environmental remediation marketing efforts and to pursue new strategies for enhancing shareholder value. In support of its growth strategy, the Company anticipates additional expenditure during fiscal 2011 in property, plant and equipment, through the addition of capital equipment and enhancements to its production facility in New Jersey, and in product development through its ongoing R&D programs. This is expected to be financed by a combination of the Company's cash reserves, continued positive earnings and third-party financing.
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 Calgary, Alberta, Canada and with shares listed on the TSX Venture Exchange (symbol EBN). [Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.]
This press release contains forward-looking statements that involve significant risks and uncertainties. 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 future growth of the Company, expected improvements in the quality and reliability of manufacturing operations, acceleration of the Company's penetration into new business areas, the development plans of the company, the expected timing and results of such development and the expectation by management that there will be sufficient cash to meet the fiscal year's financial requirements. We can provide no assurance that such development will proceed as currently anticipated, that the expected timing or results of such development will be realized or that the company will be able to generate sufficient cash to meet its obligations. 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:
please contact: Mr. William P. Long (Chief Executive Officer) USA. Tel: 609-267-9118, Email: [email protected]
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