IBR Loses $576,719 in 2nd QuarterInt'l Bio Recovery loses $576,719 in second quarter
International Bio Recovery Corp IBR
Shares issued 22,528,061 Feb 24 2004 close $ 0.42
Wednesday February 25 2004 News Release
Mr. Elmer Friesen reports
INTERNATIONAL BIO RECOVERY CORPORATION ANNOUNCES FISCAL 2004 SECOND QUARTER FINANCIAL RESULTS - COMPANY ALSO CLOSES PRIVATE PLACEMENT ANNOUNCED FEBRUARY 12, 2004 -
International Bio Recovery has released fiscal 2004 second quarter financial results for the three-month and six-month periods ended Dec. 31, 2003.
Second quarter revenue was $11,571 compared with $1,115,429 in the second quarter of fiscal 2003. The decrease in revenue is due to the recognition in the second quarter of fiscal 2003 of $1.1-million in technology fees related to the sale of IBR's technology rights in China. Since IBR derives the majority of its revenue from large technology licence sales, quarterly revenue will be earned in "lumpy" patterns with high numbers posted in those quarters where sales are made. Revenue for the six-month period ended Dec. 31, 2003, was $29,462 compared with $1,179,522 for the same period in fiscal 2003.
IBR's net loss for the second quarter was $576,719 or two cents per share, compared with net income of $588,989 or three cents per share, in the second quarter of fiscal 2003 and a net loss of $596,611 or three cents per share, in the first quarter of fiscal 2004. The year-over-year reduction is due to the previously mentioned technology licence revenue earned in the second quarter of fiscal 2003. Net loss year-to-date is $1,173,300 or five cents per share, compared with a net loss of $557,671 or three cents per share, in the same period of fiscal 2003.
Management recognizes that anticipated expansion of new business in the second half of fiscal 2004 may require increased expenditures as staff is added and higher demands are placed on management and outside services. In addition, IBR is undertaking sales and marketing initiatives to shorten its sales cycle, while continuing research and development efforts continue to focus on increasing the efficiency of the technology process and enhancing the fertilizer products. However, higher revenues from technology sales would be expected to offset such increased expenditures.
"We remain focused on building our sales pipeline for new plant licences and on translating those opportunities into new contracts," said Elmer B. Friesen, president and chief executive officer of IBR. "A recent high-level visit with Mexican government officials, along with other initiatives in North America, China, Indonesia and the Middle East, are further building awareness of IBR's unique value proposition. We appreciate our shareholders' patience as we move these prospects along the sales pipeline and we believe that in the second half of 2004 sales activity will accelerate and these efforts will be rewarded with contract wins."
The company's period end working capital position was negative $140,757 compared with positive working capital of $477,802 at June 30, 2003. During the second quarter $400,000 was raised through a private placement issue of common shares at 50 cents. Complete financial statements have been filed at www.sedar.com and posted to the company's Web site, www.ibrcorp.com.
Private placement closes
IBR is pleased to announce that further to its press in Stockwatch Feb. 12, 2004, it has completed a non-brokered private placement for 1,162,791 common share units at a price of 43 cents per unit for gross proceeds of $500,000. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at 54 cents for a period of 12 months. Proceeds will be used for general corporate purposes. The securities will be restricted from trading until June 14, 2004.
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