SAN DIEGO, Nov. 22, 2005 (PRIMEZONE) -- IPEX, Inc. (OTCBB:IPEX) (the "Company") today announced that sales for the quarter ended Sept. 30, 2005 were $3,530,598, an increase of 17% from its previous quarter and 35% from the prior year's quarter ended Sept. 30, 2004. Gross profit for the quarter was $124,894, an increase of 162% and 12%, respectively.
For the nine months ended Sept. 30, 2005, the company's sales rose by 91% to $8,346,775 as compared to sales of $4,387,882 for the same period a year ago. The cost of sales for the nine month period rose by 84% to $8,106,974, up from $4,403,416 the previous year. The cost of sales as a percentage of total revenues for the nine month period was 97% as compared to 100% for the same period last year.
The company attributes its substantial revenue gains to the easing of capital constraints that had previously limited its ability to sell to Tier 1 and Tier 2 carriers. The additional working capital provided by the private placement in March 2005 has allowed the Company to extend credit to five Tier 2 carriers and two Tier 1 carriers, thereby increasing the number of overall customers. Management believes the Company is in a position to continue increasing future sales by accepting additional Tier 1 and Tier 2 customers.
"We are pleased that the organizational and strategic changes initiated during the third quarter have increased sales and expanded the margins of our VoIP exchange," commented IPEX CEO, Jerry Beckwith.
Net loss for the quarter was $1,345,091 compared to a net loss of $1,164,167 for the quarter ended June 30, 2005. The increased net loss is attributable primarily to expenses related to the growth of the business, stock-based compensation and to one-time legal and consulting charges related to the Company's independent investigation and management reorganization.
Gross profit for the quarter rose by 162% to $124,894 as compared to a gross profit of $47,704 from the quarter ended June 30, 2005. The gross profit as a percentage of sales for the quarter ended Sept. 30, 2005 was 3.5%, up from 1.6% for the quarter ended June 30, 2005.
About IPEX, Inc.
IPEX, Inc. operates a wholesale exchange for international, IP-based telecom traffic and is developing a peering fabric with ENUM connectivity to terminate calls based on Voice over Internet Protocol (VoIP). The exchange carriers, primarily consisting of communications service providers, exchange traffic according to route quality and pricing criteria through an interactive, software-based system. IPEX's automated VoIP platform updates, routes and executes its capacity using software that also invoices and processes payments for its carriers and provides them dynamic access to routes and related information worldwide. The company is also developing digital imaging technology for use over the internet and in wireless transmission that enhances the quality of traditional RGB (red, green, blue) still and video images, while reducing their file size. IPEX, Inc. is based in San Diego, California.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as IPEX, Inc. "expects," "should," "believes," "anticipates" or words of similar import. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in the IPEX filings with the Securities and Exchange Commission, including IPEX annual report on Form 10-KSB, quarterly reports on Form 10-QSB and current reports on Form 8-K. These forward-looking statements are only made as of the date of this press release and IPEX does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.