Immunotec Inc. (TSX VENTURE:IMM), a Canadian based company and a leader in the wellness industry (the "Company"), reported financial results for the first quarter of fiscal year 2011. Revenues totaled $10.4 million, compared to $10.5 million for the corresponding period last fiscal year. Net loss and comprehensive loss were ($1,323) thousand compared to earnings of $209 thousand last year.
"The annual event held last February was energizing to everybody, while confirming the value of our products" said Bob Henry, Immunotec's Executive Chairman and CEO; "We are committed to develop our leaders and stimulate recruitment by using the new marketing tools just announced at our last event".
Highlights for Q1
The Board of directors approved several appointments during the first quarter, to further strengthen its management team following recent departures. These new appointees have more than 100 years of experience in the Network marketing industry:
Mr. Robert Henry is assuming the additional role of Chief Executive Officer ("CEO") in addition to his current Executive Chairman role. In light of this, M. Henry has stepped down from both the Audit and the Human Resources and Compensation Committees.
Mr. Stuart A. MacMillan is the new President of the Corporation.
Mr. Robert Felton is appointed as Chief Operating Officer ("COO") of the Corporation.
Mr. Rod Milne is appointed as Vice-President, Field Development and Marketing of the Corporation.
Network sales reached $9.1M in 2011 compared to $8.9M for the same period in 2010, a small increase of 2% including incremental revenues in Mexico of $1.3M despite the strengthening of the Canadian currency over the US dollar. Total consolidated revenues remained steady reaching $10.4M in 2011 vs. $10.5M in 2010.
Sales incentives increased significantly to reach a rate of 53%, compared with 48% in the previous period, as a result of strong new recruitment and moving up bonuses paid as part of the compensation plan. This increase in commission payout, although a positive element for the Network as negatively impacted the margins and the overall profitability of the Company for this quarter to 29% for the period compared with 37% last year.
Expenses were $4.4M for the period compared to $2.9M last year. The increase of $1.5M this quarter include restructuring charges of $0.7M and other administrative and marketing expenses associated with the modernization effort and new tools deployed to the field at the last annual event subsequent to quarter. The Company also invested into Development costs and launched in February 2011, two new products.
Restructuring charges negatively impacted the results of this first quarter. These restructuring provisions are associated with recent departures and in accordance with a termination agreement.
Subsequent to the quarter, in February 2011, the Company renewed the loans and the credit facilities with the bank.
Net loss and comprehensive loss totaled $1,3M for the quarter ending January 31, 2011, compared to earnings of $209 thousand for 2010. The total basic and fully diluted loss per share for the period in 2011 was ($0.019) compared to earnings of $0.003 for the same period in Fiscal 2010.
About Immunotec Inc.
Immunotec is a world-class business opportunity supported by unique scientifically proven products that improve wellness. Headquartered with manufacturing facilities near Montreal, Canada, the Company also has distribution capacities to support its commercial activities in Canada and internationally to the United States, Europe, Mexico and The Caribbean.
The Company files its consolidated financial statements, its management and discussion analysis report, its press releases and such other required documents on the SEDAR database at www.sedar.com and on the Company's website at www.immunotec.com. The common shares of the Company are listed on the TSX Venture Exchange under the ticker symbol IMM.