Epicore 2008 Second Quarter Results for the period ended 31 December 2007; currency in US Dollars

    CALGARY, Feb. 28 /CNW/ - Epicore BioNetworks Inc. reports the results of
its second quarter of fiscal year 2008 operations. Epicore's business
continued its good start to fiscal 2008 with sales increasing over a record
prior year quarter two. Epicore's first half fiscal year was stronger than
normal because of increasing southern hemisphere sales. Revenues increased
10% over prior year ($782,300 versus $711,100). Gross profit decreased
11% ($476,900 versus $534,500) because of product mix, higher raw material
costs and increased conversion costs. Expenses at $391,100 were 2% above prior
year quarter two as the Company increased marketing expenses and continued to
invest in enhancing future opportunities. The Company recorded net income of
$65,700 versus $138,400 in prior year quarter two. Net income per share for
the current quarter was $0.003 versus $0.006 in prior year quarter two. Cash
reserves were $0.33 million versus $0.24 million in prior year quarter two.
    Epicore sales revenue increased $71,200 over prior year quarter two,
building on the strongest quarter two in Company history. Quarterly sales
reflected the Company's commitment to aquaculture and its strong position in
the world shrimp aquaculture markets. Aquaculture represented over 97% of
sales. Latin America was the largest sales region with the non-Ecuador
hatchery sector substantially ahead of prior year. Ecuador remained our
largest sales country despite lower sales in the farm sector due to intense
competition. Our EPICIN-in-feed farm program continued to offer Ecuadorian
farmers the best performance for the money but lower unit-priced probiotics
took market share. Our Ecuadorian hatchery sales benefited from new products,
such as our low cost EPILITE liquid feeds and new EPICIN-G2 probiotic. Sales
grew in Central and the rest of South America as our EPIFEED-MBF maturation
feed gained popularity and as Brazil began to cope with IMNV virus.
    Sales increased in Asia as major hatcheries employed Epicore products in
their switch from Penaeus monodon to Penaeus vannamei. Epicore's experience
and contacts in Latin America opened doors with important Asian groups. The
region represents 80% of world shrimp aquaculture potential and now
contributes a significant percentage of Epicore sales. Recent Asian success
shows that the Company's years of effort and investments are starting to
generate strong results.
    Non-aquaculture sales benefited from the RootX municipal distribution
deal signed last year.
    Quarterly operating expenses were slightly higher than prior year
($0.39 versus $0.38 million) due to increased marketing efforts and higher
corporate expenses.
    Cash at the end of September was $0.33 million versus $0.24 million in
prior year and $0.50 in quarter one. Operating activities, including changes
in non-cash working capital balances, consumed $0.2 million of cash during
quarter two mainly due to higher accounts receivable. While market conditions
remain difficult in several regions, the Company has positioned itself well to
succeed in the important markets. Long-term prospects for Epicore aquaculture
technology remain attractive as the opportunities for developing new areas of
potential are developed.
    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). (The TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of this

    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 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:

For further information: Mr. William P. Long (Chief Executive Officer),
USA. Tel: (609) 267-9118, Eastampton, NJ, 08060

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