Epicore earns $203,500 (U.S.) in Q3
2005-05-25 09:52 ET - News Release
Mr. William Long reports
EPICORE FISCAL 2005 THIRD QUARTER RESULTS FOR THE PERIOD ENDED 31 MARCH 2005
Epicore Bionetworks Inc. had a significant increase in sales in the third quarter of its current fiscal year compared with the previous quarter and compared with prior year quarter three ($798,700 (U.S.) versus $251,600 (U.S.) and $487,500 (U.S.), respectively). The period was the highest sales quarter in Epicore history. Gross margin also was higher than prior year quarter three ($514,800 (U.S.) versus $395,600 (U.S.)). Expenses were slightly higher than prior year level ($311,300 (U.S.) versus $271,800 (U.S.)) primarily due to increased marketing effort. The company recorded a higher net income than the prior year period ($203,500 (U.S.) versus $124,100 (U.S.)). Net income per share for the quarter was one U.S. cent. Because of this strong quarter the company has profits of $110,500 (U.S.) year-to-date for the fiscal year.
Sales for the quarter reflected the company's commitment to aquaculture and its strong position in the Latin American market. Aquaculture represented over 90 per cent of sales and Latin America accounted for approximately 75 per cent of sales. Mexico took the lead as the company's largest sales area with a strong program of hatchery and pond sales. Asian sales increased substantially over prior year period with especially strong contributions from India and Vietnam. Epicore's shrimp hatchery technology continues to find strong acceptance with existing customers. Ecuadorian sales growth was from the company's new method of applying Epicin in grow-out ponds. Sales of non-aquaculture products also were strong in quarter three. Several good-sized orders of Epicore grease digesting products were made. Agricultural product sales also significantly exceeded forecast.
Total expenses for the quarter increased 15 per cent over prior year quarter three. The company invested in additional marketing staff in Ecuador and was rewarded with significantly higher sales than prior year. Increased effort in Southeast Asia increased expenses. Quarter three historically is a period of heavier than normal corporate expense. Elimination of part of Epicore's compensation deferment program increased expenses compared with prior year quarter three.
There was no non-operational income in the quarter. Cash decreased $113,000 (U.S.) from quarter two ($269,100 (U.S.) compared with $382,100 (U.S.)) because of an increase in receivables and inventory. Collections are expected to improve in quarter four as hatchery customers collect from their farm customers. The company's cash position is manageable.
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