Itronics Increases Third Quarter 2007 Sales by 82 Percent, Nine Months Sales Increase 36 Percent
2007-11-14 05:00 ET - News Release
RENO, Nev., Nov. 14 /PRNewswire-FirstCall/ -- Itronics Inc. has filed its third quarter 2007 report on Form 10QSB, and it is now available on the SEC web site at sec.gov. In the third quarter ended September 30, 2007, the Company achieved an 82 percent increase in sales, and a $17,152 gross profit compared to a $11,882 gross operating loss the 2006 third quarter, an improvement of $29,034.
"This is the first time Itronics has achieved a positive gross profit in the third quarter which is normally the lowest sales quarter of the year," said Dr. John Whitney, President. For the nine month period ended September 30, gross profit was $151,934 compared to a gross profit of $121,164 for the same period in 2006, an increase of 25 percent.
A $544,325 net profit was generated in the third quarter. Nine month net loss was reduced to $1,159,645, a reduction of 63 percent. The third quarter net profit and nine month reduction in net loss are due to a reduction in the "loss on derivative instruments," calculated as required by current accounting standards.
Demand for the Itronics' environmentally beneficial recycling services is increasing as restrictions on alternative methods of liquid photochemical disposal continue to tighten throughout the United States. The Company is currently negotiating two additional waste photochemical processing agreements that when completed are expected to provide sufficient photoliquids to support GOLD'n GRO liquid fertilizer and GOLD'n GRO Guardian deer repellent fertilizer sales growth in 2008 and beyond.
Mining Technical Services sales increased by 152 percent in the third quarter as this division continues to advance its web based InsideMetals.com Gold Producer Stocks information portal: http://www.insidemetals.com. Visitor traffic on the InsideMetals.com web page is continuing to increase and the site is beginning to generate subscription income. The Company is now actively marketing paid advertising programs on the web site to Gold & Minerals Exploration Companies.
Itronics continued to expand its development of future revenue streams in the mining segment through approval by its Board of Directors to establish two new subsidiaries. One subsidiary will develop the photochemical based thiosulfate technology for use for mineral extraction, including mine tailings, and reclamation of gold heap leach operations. The other subsidiary will acquire multi-mineral properties and invest in strategic small specialty companies that are in early stage or commercial operation. "The Company's Board of Directors believes that forming and activating these new subsidiaries will allow it to monetize more of its intellectual property and produce a greater increase in income and asset growth for Itronics' shareholders," Dr. Whitney said.
Third quarter operating loss increased 50 percent compared to the prior year, principally due to a combination of the effects of the increased corporate marketing and financing expenses.
Results for the third quarter ended September 30, 2007, together with comparative figures for 2006 are summarized below:
For the Quarter For the 9 Months Ended September 30 Ended September 30 2007 2006 2007 2006 REVENUE Fertilizer $241,693 $145,828 $1,411,442 $1,046,103 Silver $87,394 $126,068 $208,291 $286,810 Photo Services $206,265 $22,953 $294,243 $60,310 Mining Technical Services $8,329 $3,300 $14,957 $25,211
Total Revenues $543,681 $298,149 $1,928,933 $1,418,434
Operating Income (Loss) ($873,542) ($583,549) ($2,158,681) ($1,591,880)
Other Income (Expense) ($345,040) ($297,204) ($595,118) ($786,528) (including interest)
Gain on Derivative Instruments $1,762,907 ($2,222,810) $1,594,154 ($730,404) (non cash item related to financing)
Net Income (Loss) $544,325 ($3,103,563) ($1,159,645) ($3,108,812)
Net Income (Loss) Per Share $0.001 ($0.012) ($0.003) ($0.014)
Average Weighted Outstanding Shares 466,067,000 253,718,000 407,278,000 226,831,000
The Company continues to meet goals outlined for the balance of 2007, which are to continue to expand GOLD'n GRO liquid fertilizer sales and silver sales; increase the number of photowaste services customers to expand photochemical raw material supply; register GOLD'n GRO Guardian liquid animal repellant fertilizer; and continue to acquire financing to support growth. All of this continues implementation of Itronics' eight part 5 year business plan that was summarized in a press release on June 3, 2005.
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