for the period ended 31 March 2009
CALGARY, May 22 /CNW/ - Epicore BioNetworks Inc. reports lower sales in
quarter three compared to prior period but thanks to a strong start in
quarters one and two year-to-date sales are 1% higher than prior year. The
full effect of the bear economy left its mark on Epicore in quarter three
fiscal 2009. Revenues fell sharply in quarter three as shrimp processors,
especially in Central America, reacted to higher than normal frozen inventory
and delayed starting the 2009 season. Epicore revenue decreased by 28%
compared to last quarter and by 30% from prior year quarter three. Some
- Revenue for the quarter (at $0.65 million) 30% lower than Q3 last
- Year-to-date revenue (at $2.4 million) 1% higher than prior year.
- Net income this quarter (at $0.005 million) 97% lower than last
- Basic and diluted earnings from $0.01 per share in prior year to
$0.00 per share.
- Shareholders' equity (at $2.3 million) 27% over prior year and 1%
over prior quarter.
- Quarterly cash flow $0.2 million over prior quarter and $0.1 million
over Q3 last year.
- Year-to-date cash flow $0.2 million lower than prior year.
- Cash balance (at $0.7 million) 120% higher than prior year Q3.
Aquaculture remains the Company's strongest market sector, producing 98%
of total sales. Epicore biotechnology and specialty feed technology offer
answers to problems of pollution, disease and poor nutrition in aquaculture
operations around the world and the Epicore product range offers strong value
to a growing customer base. While Epicore sales revenue decreased 30% compared
to prior year quarter three, the shortfall was primarily from Central America.
Other sales regions made small gains on prior year. Ecuador, where Epicore has
invested many years of market development effort and has an excellent team of
people, remains our largest sales country. Epicore municipal sales also
increased over prior year Q3.
Gross profit decreased largely in proportion to the sales decrease.
Operating expenses were 3% lower than prior year because of delays in planned
expenditures. Lower net income resulted in a lower provision for income taxes,
which were partially decreased by our accumulated net operating losses. The
Company generated a net income of $5K versus $210K in prior year quarter
three, as summarized below:
(US$) 2009 2008
Sales 654,000 940,000
Gross Profit 409,000 634,000
Expenses 389,000 400,000
Other Income (Expense) (9,000) (8,000)
Income Taxes 5,000 15,000
Net Income 5,000 210,000
Cash at the end of March was $0.7 million, an increase of $0.4 million
compared to prior year and an increase of $0.1 million from fiscal 2009
quarter two. This was mainly due to exercising our line of credit. 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. Additional funds will go toward expansion of Epicore's
scientific resources, a process begun in Q3. The Company has made a major
commitment to R&D with the hiring of another laboratory microbiologist and
contracting with a world expert environmental microbiology consultant. With
these added resources the Epicore technical team should be able to
significantly expand our new product development program to support our
aquaculture business and to open doors into other environmental biotech areas.
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 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
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 Calgary, Alberta, Canada,
Epicore has its U.S. headquarters in Eastampton, New Jersey and a Latin
America office in Ecuador. Visit www.epicorebionetworks.com or phone
1-877-374-2673 for more information.
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
For further information:
For further information: William P. Long, Chief Executive Officer,
Epicore BioNetworks Inc., (609) 267-9118, William.Long@EpicoreBioNetworks.com