Financial information for the quarter and the six month period ended April 30, 2007

    VAUDREUIL-DORION, QC, June 29 /CNW Telbec/ - 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
    Since Immunotec Research Ltd. realized a reverse take-over transaction
(the "RTO") with Magistral Biotech Inc. completed on January 23, 2007, the
financial information contained in Immunotec's consolidated unaudited
financial statements for the second quarter ended April 30, 2007 is a
combination of the results of operations of Immunotec Inc. (formerly Magistral
Biotech Inc.) and of Immunotec Research Ltd. The comparative consolidated
figures for the quarter ended April 30, 2006 are from Immunotec Research Ltd.
since, for accounting purposes, Immunotec Inc. is considered to be a
continuation of Immunotec Research Ltd.
    For the six-month period ended April 30, 2007, net sales were $17,490,299
($8,835,156 for the quarter) compared to $19,784,582 ($10,157,573 for the
quarter) for the corresponding period of 2006. The Company's net sales have
decreased compared to the previous year. This decrease mainly reflects a drop
in volume during the six month period in Canada of $1,541,765 and in the
United States of $832,622 offset by higher sales of $80,104 to other
    For the second quarter ended April 30, 2007, net sales showed a decrease
of 13.0% compared to 2006. Both the Canadian and US markets resulted in a
decrease in net sales of approximately 14.6%, whereas, sales to other
countries increased by 7.2%. An important factor contributing to this decrease
in sales was the classification of certain products as taxable items effective
May 1, 2006. As a result, a number of distributors and customers increased
their purchases by approximately $600,000 in April 2006 to benefit from the
non-taxable status of these products.
    For the six-month period ended April 30, 2007, cost of sales as a
percentage of net sales was 17.0% (18.1% for the quarter), compared to 16.6%
(17.6% for the quarter) for the corresponding periods of 2006. The increase in
the cost of sales percentage to net sales, for these periods, 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 41.6% of net sales for the six-month period ended
April 30, 2007 (41.1% for the quarter), compared to 42.0% (41.3% for the
quarter) of net sales for the corresponding period of 2006. This decrease in
sales incentives results from increased 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 $5,853,380 for the
six-month period ended April 30, 2007 ($2,958,419 for the quarter), compared
to $5,322,970 ($2,609,701) for the corresponding period of 2006, representing
an increase of 10.0% (13.4% for the quarter). The increase is largely
attributable to expenses relating to the RTO, its new Board of Directors and
stock option compensation.
    Net earnings were $930,828 for the six-month period ended April 30, 2007
($425,065 for the quarter), compared to $1,925,638 ($1,032,720) for the
corresponding period of 2006. The decrease is largely attributable to the
decline in net sales and additional costs related to the RTO which includes
stock option compensation of $307,672 ($209,634 for the quarter), a non-cash


    As at April 30, 2007, the Company had a cash position of $1,736,703
compared to $982,484 as at April 30, 2006. At the end of the quarter the
working capital was $3,542,682 with a ratio of 1.75 compared to a working
capital of $2,565,312 with a ratio of 1.72 as at October 31, 2006.


    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 being implemented will help increase sales in the
next two quarters.
    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.
    At the end of May, the Company held its Annual Distributor Event in
Scottsdale, Arizona and launched the following two new products.

    a) Vitamin/Mineral Supplement with Chlorella (USA and Canada) a natural
       source of micronutrients and Resveratrol (Canada). This new product
       also contains optimal dosage of vitamin D; studies suggest vitamin D
       deficiency may explain higher cancer rates

    b) Omega-3 with Turmeric, research has convincingly shown the potential
       benefits of omega-3 fatty acids (DHA and EPA) to:

       - Promote optimal cardiovascular health
       - Support proper brain and neural development
       - Maintain good joint health
       - Help retain normal blood pressure & triglyceride levels
       - Support immune system function
       - Support breast, colon, and prostate health

    Turmeric shows exciting promise due to its anti-inflammatory activity and
antioxidant properties. The potential effect of turmeric on neurodegenerative
diseases such as Alzheimer's may help account for the active lives enjoyed by
so many Asian Indians.


                          2007                          2006
                  ------------------- ---------------------------------------
                   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter
                         2         1         4         3         2         1
                     April   January   October      July     April   January
                        30,       31,       31,       31,       30,       31,
                      2007      2007      2006      2006      2006      2006
                     ($000)    ($000)    ($000)    ($000)    ($000)    ($000)
                  --------- --------- --------- --------- --------- ---------
    Net Sales        8,835     8,655     8,581     8,543    10,158     9,627
    Cost of Sales    1,601     1,368     1,484     1,460     1,788     1,489
     Incentives      3,628     3,642     3,501     3,458     4,193     4,121
     General and
     Administrative  2,958     2,895     2,684     2,309     2,610     2,713
    Earnings before
     income taxes      648       750       921     1,316     1,567     1,304
    Net Earnings       425       506       640       883     1,033       893
    Net Earnings
     per share:
      Basic          0.006     0.008     0.010     0.013     0.015     0.013
      Diluted        0.006     0.007     0.010     0.013     0.015     0.013
    Average number
     shares           (000)     (000)     (000)     (000)     (000)     (000)
      Basic         69,994    62,870    64,851    66,924    66,924    66,924
      Diluted       69,994    68,326    66,924    66,924    66,924    66,924
    Cash Dividends
     ($000)              -         -       441         -     1,592         -

                                         As at          As at          As at
                                      April 30,    January 31,    October 31,
                                          2007           2007           2006
                                     Unaudited      Unaudited        Audited
                                            ($)            ($)            ($)
                                 -------------- -------------- --------------
    Total Assets                    20,812,502     21,854,553     15,195,570

    Long Term Liabilities:
      Class A shares redeemable
       at the option of the holder           -              -     11,325,000

      Future Income Taxes                    -        328,673        246,590
                                 -------------- -------------- --------------
                                             -        328,673     11,571,590
    Shareholders' Equity:
      Share Capital                  3,465,548      3,465,548          1,700
      Contributed surplus           11,326,406     11,326,406          1,706
      Other Capital-Stock Options      307,672         98,038              -
      Retained Earnings              1,002,879        577,814         72,051


    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.


    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

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