IPICO Inc. announces second quarter results



    BURLINGTON, ON, Aug. 27 /CNW/ - IPICO Inc. (TSX-V: RFD) today announced
results for the three months ended June 30, 2009. Revenue for the second
quarter increased 53% to $1,806,018 compared to $1,180,958 in the second
quarter of 2008. Gross margin was $483,313 compared with $518,950 in 2008. Net
loss for the quarter was $2,737,798 ($0.05 per share) compared to $2,528,051
($0.05 per share) in 2008. Prior to the impact of the stock based compensation
charge the net loss was $2,423,838 down from $2,528,051 in the prior year
quarter.
    Total operating expenses for the quarter ended June 30, 2009 were
$3,148,109 and this included non-cash stock based compensation charges of
$313,960 related to the release of shares held by a trust during the second
quarter. There was no such charge in the prior year quarter where total
operating expenses were $3,040,469. The benefits of cost savings realized in
the second quarter of 2009 more than offset the operating costs associated
with the Company's exclusive Sports Timekeeping distributor acquired in the
fourth quarter of 2008. The benefits of ongoing cost savings measures being
implemented across all of the Company's operations will continue to be
realized in the coming quarters.

    
    -------------------------------------------------------------------------
                                                  Three months ended June 30
    (in Canadian dollars, except per share)                2009         2008
    -------------------------------------------------------------------------
    Revenue                                         $ 1,806,018  $ 1,180,958
    Gross margin                                        483,313      518,950
    Gross margin %                                          27%          44%
    Total operating expenses                          3,148,109    3,040,469
    Net loss                                         (2,737,798)  (2,528,051)
    Net loss per share (basic and diluted)                (0.05)       (0.05)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Company's cash and cash equivalents at June 30, 2009 were $1,391,870
compared with $4,371,557 at December 31, 2008 a reduction of $2,997,687.
    The Company's unaudited interim consolidated financial statements for the
second quarter ended June 30, 2009 along with management's discussion and
analysis thereon can be on found on SEDAR at www.sedar.com under the trading
symbol TSX-V:RFD.

    ABOUT IPICO Inc.

    IPICO Inc. is an RFID solution supplier with operations in Canada, USA,
South Africa, Europe, Asia and Australia. IPICO produces smart labels, tags
and readers based on the IP-X communication protocol. Its products are
designed to conform to regulatory requirements in most major geographical
regions, to excel at long read range, fast multi-read anti-collision and high
thru-beam read-speeds of dynamic tag populations, and to allow for
multi-reader rollout in close proximity. IPICO's products are used to optimize
the management of products, equipment, people, animals and processes within
the logistics and other value chains. For further information, go to
www.ipico.com.

    
    THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
    OR THE ACCURACY OF THIS RELEASE.
    
    %SEDAR: 00023515E




For further information:

For further information: Gordon Westwater, President & CEO, IPICO Inc.,
Tel: (905) 631-6310, Email: gordon.westwater@ipico.com; Ted Irwin, Chief
Financial Officer, IPICO Inc., Tel: (905) 631-6310, Email:
ted.irwin@ipico.com

Organization Profile

IPICO INC.

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