Immunotec Inc. - Financial information for the quarter and the nine month period ended July 31, 2007



    Immunotec Inc. (TSX: IMM) (the "Company" or "Immunotec"), is engaged
    primarily in the development, manufacturing and marketing of health and
    wellness products which are classified as dietary supplements or natural
    health products. These products are distributed and sold in Canada and
    the United States through a network marketing system and in other
    countries under exclusive distributorship agreements.

    VAUDREUIL-DORION, QC, Sept. 28 /CNW Telbec/ - Since Immunotec Research
Ltd. realized a reverse take-over transaction (the "RTO") with Magistral
Biotech Inc. effective December 20, 2006, the financial information contained
in Immunotec's consolidated unaudited financial statements for the nine month
period ended July 31, 2007 is a combination of the results of operations of
Immunotec and of Magistral from December 20, 2006, the date of the business
combination. The comparative consolidated figures for the quarter ended
July 31, 2006 are from Immunotec Research Ltd. since, for accounting purposes,
Immunotec Inc. is considered to be a continuation of Immunotec Research Ltd.
    For the nine-month period ended July 31, 2007, net sales were $26,016,559
($8,526,260 for the quarter) compared to the previous year where they were at
$28,327,190 ($8,542,608 for the quarter). The Company's net sales have
decreased compared to the previous year. This decrease mainly reflects a drop
in volume during the nine month period in Canada of $1,436,284, in the United
States of $798,454 and in other countries of $75,893.
    For the third quarter ended July 31, 2007, net sales were comparable to
prior year. Both the Canadian and US markets resulted in an increase in net
sales of $105,481 and $34,168, respectively, whereas sales to other countries
decreased by $155,997.
    For the nine-month period ended July 31, 2007, cost of sales as a
percentage of net sales was 17.3% (17.9% for the quarter), compared to 16.7%
(17.1% for the quarter) for the corresponding periods of 2006. The increase in
the cost of sales percentage to net sales, for the quarter and the nine-month
period, resulted from the sales mix of products.
    Sales incentives are the largest operating expenses of the Company and
depend directly on the sales volume of each independent distributor. Sales
incentives include both commissions related to commissionable net sales and
various incentives which can be earned by independent distributors.
    Sales incentives were 41.5% of net sales for the nine-month period ended
July 31, 2007 (41.5% for the quarter), compared to 41.6% (40.5% for the
quarter) of net sales for the corresponding period of 2006. For the quarter,
the increase in sales incentives results from decreased sales in other
countries in relation to sales in Canada and the United States, since sales
incentives are assumed by the exclusive distributors in each country from
their own product sales.
    The selling, general and administrative expenses were $8,613,550 for the
nine-month period ended July 31, 2007 ($2,760,170 for the quarter), compared
to $7,631,893 ($2,308,923 for the quarter) for the corresponding period of
2006, representing an increase of 12.9% (19.5% for the quarter). The increase
is largely attributable to expenses relating to the RTO completed by the
Company, including the stock option compensation of $521,336 ($213,664 for the
quarter), a non-cash expense.
    Net earnings were $1,497,579 for the nine-month period ended July 31,
2007 ($566,751 for the quarter), compared to $2,808,241 ($882,603 for the
quarter) for the corresponding period of 2006. For the nine-month period
compared to 2006, the decrease is largely attributable to the decline in net
sales and additional costs related to the RTO completed by the Company which
includes stock option compensation offset partly by the reversal of income tax
provisions.

    FINANCIAL SITUATION AND LIQUIDITY

    As at July 31, 2007, the Company had a cash position of $2,185,972
compared to $244,990 as at July 31, 2006. At the end of the quarter the
working capital was $4,649,737 with a ratio of 2.73 compared to a working
capital of $2,565,312 with a ratio of 1.72 as at October 31, 2006.

    OUTLOOK

    Immunotec benefits from a solid balance sheet, skilled and motivated
employees, well established suppliers, repeat customers and a dedicated
network of distributors. Management believes that the new measures and sales
and marketing initiatives implemented to date will continue to have a positive
effect on sales in Canada and United States:

    
    - Hiring of three Regional Sales Directors. Two in the United States and
      one in Canada;
    - Creating a Communications and Public Relations group;
    - Hiring a new Marketing Director;
    - Implementing changes in our Distributor training programs;
    - Hiring Spanish speaking customer service agents, translation of our
      brochures and our web site in Spanish for our growing U.S. Spanish
      speaking market.

    Management is of the opinion, that its investment in current research in
such areas as cancer cachexia, prostate health, aging and aging related
conditions will enable Immunotec to produce and bring to market more value
added products which will continue to differentiate its products from
competing products.
    Immunotec, following recommendations from its Product Development
Committee, is constantly developing new products that are appropriate for its
health and wellness markets.

    FINANCIAL HIGHLIGHTS
                                                          2007
                                         ------------------------------------
                                                  Q3          Q2          Q1
                                             July 31    April 30  January 31
                                                2007        2007        2007
                                                  ($)         ($)         ($)
                                         ------------------------------------
    Net Sales                              8,526,260   8,835,156   8,655,143

    Cost of Sales                          1,526,082   1,600,740   1,368,427

    Sales Incentives                       3,538,010   3,628,354   3,642,096

    Selling, General and
     Administrative                        2,760,170   2,958,419   2,894,961

    Earnings before income taxes             701,998     647,643     749,659

    Net Earnings                             566,751     425,065     505,763

    Net Earnings per share:
      Basic                                    0,008       0,006       0.008
      Diluted                                  0,008       0,006       0.007
    Weighed average number of
     common shares outstanding:
      Basic                               69,994,300  69,994,300  62,869,951
      Diluted                             69,994,300  69,994,300  68,325,721
    Cash Dividends Declared                        -           -           -
    -------------------------------------------------------------------------

                                                     2006
                             ------------------------------------------------
                                      Q4          Q3          Q2          Q1
                              October 31     July 31    April 30  January 31
                                    2006        2006        2006        2006
                                      ($)         ($)         ($)         ($)
                             ------------------------------------------------

    Net Sales                  8,580,622   8,542,608  10,157,573   9,627,009

    Cost of Sales              1,484,128   1,459,783   1,787,894   1,489,240

    Sales Incentives           3,500,505   3,458,245   4,193,049   4,120,962

    Selling, General and
     Administrative            2,683,841   2,308,923   2,609,701   2,713,269

    Earnings before income
     taxes                       921,148   1,315,657   1,566,927   1,303,538

    Net Earnings                 639,776     882,603   1,032,720     892,918

    Net Earnings per share:
      Basic                        0.010       0.013       0.015       0.013
      Diluted                      0.010       0.013       0.015       0.013
    Weighed average number
     of common shares
     outstanding:
      Basic                   64,850,922  66,924,115  66,924,115  66,924,115
      Diluted                 66,924,115  66,924,115  66,924,115  66,924,115
    Cash Dividends Declared      441,300           -   1,592,470           -
    -------------------------------------------------------------------------


                                   As at       As at       As at       As at
                                 July 31,   April 30, January 31, October 31,
                                    2007        2007        2007        2006
                               Unaudited   Unaudited   Unaudited     Audited
                                      ($)         ($)         ($)         ($)

                              ----------- ----------- ----------- -----------
    ASSETS:
    -------
    Current Assets             7,343,624   8,252,679   8,698,123   6,113,835
    Other Assets              12,233,183  12,559,823  13,156,430   9,081,735
                              ----------- ----------- ----------- -----------
        TOTAL                 19,576,807  20,812,502  21,854,553  15,195,570
                              ----------- ----------- ----------- -----------
    LIABILITIES:
    ------------
    Current Liabilities        2,693,887   4,709,997   6,058,074   3,548,523

    Long Term Liabilities              -           -     328,673  11,571,590

                              ----------- ----------- ----------- -----------
        TOTAL                  2,693,887   4,709,997   6,386,747  15,120,113
                              ----------- ----------- ----------- -----------
    SHAREHOLDERS' EQUITY:
    ---------------------
      Share Capital            3,465,548   3,465,548   3,465,548       1,700
      Other Equity-Stock
       Options                   521,336     307,672      98,038           -
      Contributed surplus     11,326,406  11,326,406  11,326,406       1,706
      Retained Earnings        1,569,630   1,002,879     577,814      72,051
                              ----------- ----------- ----------- -----------

      TOTAL                   19,576,807  20,812,502  21,854,553  15,195,570
                              ----------- ----------- ----------- -----------
    

    FORWARD LOOKING STATEMENTS

    Certain statements included in this press release contain forward looking
information about Immunotec's future financial position, operating results and
sales. They may be based on market expectations, management opinions and
assumptions. Such information involves significant risks and uncertainties
that are difficult to predict and rely on assumptions that may prove
inaccurate. Actual results and events may differ materially from these forward
looking statements.

    ABOUT IMMUNOTEC

    Immunotec operates out of a 37,000 square foot facility located in
Vaudreuil-Dorion, Quebec, Canada as well as a manufacturing facility located
in Blainville, Quebec, Canada and a distribution centre located in Swanton,
Vermont, USA. Immunotec is engaged primarily in the development and marketing
of dietary supplements, food, vitamins, personal care products and natural
health products, some of which are manufactured on its behalf by third
parties. Immunotec's products are distributed and sold in Canada and the
United States through a network marketing system and in other countries under
exclusive distributorship agreements.

    The TSX Venture does not accept responsibility for the adequacy or
    accuracy of this release.




For further information:

For further information: Richard Patte, CA, Executive Vice-President and
Chief Financial Officer, (450) 510-4445

Organization Profile

IMMUNOTEC INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890