(Filed Under Financial and General Interest News). iFabric reported a loss of CAD 431,778 (Canadian dollars, about $327,000 at today’s exchange rates) in its fiscal first quarter 2019, as its sales dropped 52% to CAD 2,471,881 (about $1.87 million).
In the same quarter a year ago the company had earned
CAD 964,262 (about $730,000) on sales of CAD 5,136,771 (about $3.9 million).
The Ontario-based firm has two subsidiaries, one of which, Coconut Grove Pads Inc., an intimates supplier, recently eliminated its sizable sleepwear division, a move to which it “mainly” attributed the parent company’s dramatic decline in sales. The division had licensed the Maidenform brand for its sleepwear.
The other subsidiary, Intelligent Fabric Technologies (North America) Inc. (IFTNA), which also suffered substantial declines, “is focused on performance apparel as well as proprietary chemical formulations that render fabrics, foams, plastics and numerous other surfaces intelligent.”
“We are now in the execution phase of our strategy for longer term growth,” explained Hylton Karon, president and CEO, of the results. “Our first target was to eliminate less profitable and low future potential products. This quarter shows the effect of our discontinuance of sleepwear. Our move to focus on the higher potential products such as performance apparel has resulted in the addition of a major U.S. retailer to our customer portfolio. Programs for this customer are expected to add approximately $10 million in annual revenues, with the first products anticipated to commence shipping around the end of our third quarter. Negotiations with several other retailers are ongoing and I am confident that our portfolio of customers for performance apparel will expand. In addition, the previously advised clinical trials for our Protx2 antibacterial technology have been confirmed for the summer. A positive outcome for these trials should result in additional Protx2 licenses being concluded in the medical space.”
The company reported that first quarter sales in the apparel division were CAD 1,304,322 (about $987,000) in the quarter ended December 31, 2018 compared to CAD 3,479,795 in the same quarter the previous year, a decrease 63%.
Sales at the Intelligent Fabrics Division were CAD 1,141,959 in the quarter, representing a decrease of 30% from the previous year. “The decrease is mainly attributable to no milestone license receipts in Q1 2019.” — NM
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