IPICO Inc. announces improved first quarter results

Fri May 22, 9:07 AM

BURLINGTON, ON, May 22 /CNW/ - IPICO Inc. (TSX-V: RFD.V) today announced results for the three months ended March 31, 2009. Revenue for the first quarter increased 83% to $1,862,693 compared to $1,019,113 in the first quarter of 2008. Gross margin increased 116% to $888,568 compared with $411,937 in 2008. Net loss for the quarter was $2,127,404 ($0.04 per share) compared to $2,478,764 ($0.05 per share) in 2008.

Operating costs in the first quarter of 2009 were $2,948,821 compared to $2,756,491 in 2008. The benefits of cost savings measures realized in the first quarter were more than offset by the operating costs associated with the Company's exclusive Sports Timekeeping distributor acquired in the fourth quarter of 2008. The benefits of ongoing cost savings measures being implemented across all of the Company's operations will continue to be realized in the coming quarters.

    
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                                                 Three months ended March 31
    (in Canadian dollars, except per share)               2009          2008
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    Revenue                                        $ 1,862,693   $ 1,019,113
    Gross margin                                       888,568       411,937
    Gross margin %                                        47.7%         40.4%
    Total operating expenses                         2,948,821     2,756,491
    Net loss                                        (2,127,404)   (2,478,764)
    Net loss per share (basic and diluted)               (0.04)        (0.05)
    -------------------------------------------------------------------------

The Company's cash and cash equivalents at March 31, 2009 were $2,964,032 compared with $4,371,557 at December 31, 2008 a reduction of $1,407,525 benefiting from strong working capital and cash flow management.

The Company's unaudited interim consolidated financial statements for the first quarter ended March 31, 2009 along with management's discussion and analysis thereon can be on found on SEDAR at www.sedar.com under the trading symbol TSX-V:RFD.

ABOUT IPICO Inc.

IPICO Inc. is an RFID solution supplier with operations in Canada, USA, South Africa, Europe, Asia and Australia. IPICO produces smart labels, tags and readers based on the IP-X communication protocol. Its products are designed to conform to regulatory requirements in most major geographical regions, to excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations, and to allow for multi-reader rollout in close proximity. IPICO's products are used to optimize the management of products, equipment, people, animals and processes within the logistics and other value chains. For further information, go to www.ipico.com.

    
    THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
    OR THE ACCURACY OF THIS RELEASE.

Contacts

Gordon Westwater
President & CEO
IPICO Inc.
Tel: (905) 631-6310
Email: gordon.westwater@ipico.com

Ted Irwin
Chief Financial Officer
IPICO Inc.
Tel: (905) 631-6310
Email: ted.irwin@ipico.com