IT&Amp;E International Group Reports Second Quarter Results
IT&E International Group, Inc. (OTCBB: ITER), a clinical research organization (“CRO”) with substantial regulatory support, today reported results for the second quarter ended June 30, 2006. On July 31, 2006, IT&E, which will be renamed Averion International Corp. pending stockholder approval, completed a series of transactions under the Agreement and Plan of Merger announced on July 6, 2006, with privately held Averion Inc., a Massachusetts corporation. The results for the second quarter do not reflect contributions from Averion Inc.
For the second quarter, IT&E reported total revenue of $4.9 million compared with $4.4 million for the same period a year earlier. The company recorded a gross profit of $1.5 million, which compares with a gross profit of $1.3 million for the same period in 2005. Net operating loss for the recently ended quarter was $0.91 million, as compared with $0.42 million in the year ago period. IT&E reported a net loss of $0.85 million, or $(0.01) per basic and fully-diluted share, for the second quarter of 2006 versus a net loss of $0.59 million, or $(0.03) per basic and fully-diluted share, in the 2005 second quarter.
Dr. Philip T. Lavin, founder and former Chief Executive Officer of Averion and now Chief Executive Officer of the combined company, said, “We have formulated an integration plan across the combined operations inclusive of processes, systems, and cross-training to best serve the needs of our existing as well as future clients. For the balance of the year, we expect to realize expanded revenues deriving from our increased backlog in oncology — most notably in our Millennix Oncology Division, which produced a significant increase in revenues and backlog during the first half of the year. Additionally, we believe that we have a strong management team and plans in place to establish Averion International Corp. as a world class CRO with unique therapeutic areas of expertise in the fields of oncology, dermatology, nephrology and medical devices. Looking ahead, we intend to expand our capabilities worldwide, initiating in Europe.”
About Averion Inc.
Headquartered in Framingham, Massachusetts, Averion Inc., and its European division located in Darmstadt, Germany, is a full-service CRO in business for 23 years with a therapeutic focus in dermatology, medical devices, nephrology, and oncology and core competence in FDA and product registration support, site selection, project management, medical and site monitoring, data management, biometrics, pharmacovigilance, medical writing, and full clinical trial management services throughout the clinical trials lifecycle. The company has supported more than 40 FDA approvals to date with no refusals among submissions accepted for filing; in addition, the company has helped achieve approvals for six oncology-related product approvals. (http://www.averioninc.com)
About IT&E International Group, Inc. and its Millennix Oncology Division
Headquartered in San Diego, IT&E International and its Millennix division in Rye Brook, NY, is a full-service CRO that provides pharmaceutical and biotechnology companies with FDA and global regulatory compliance and validation services as well as full-service CRO support with an oncology focus throughout the product development lifecycle. The company’s team of industry veterans utilizes the latest tools and procedures to help its clients move quickly and effectively from drug development through the FDA approval process. Consulting services throughout the product development lifecycle include regulatory planning, providing skilled personnel for development operations, enterprise software and training to manage data and ensure FDA compliance and validation of new pharmaceutical manufacturing facilities. Oncology CRO services support Phase I – IV trials, and include regulatory and strategic planning, study design and implementation, site identification and management, safety reporting, data management, biometrics and reporting. (http://www.iteinternational.com) (www.millennix-inc.com)
Forward Looking Statement
Included in this release are “forward-looking statements.” Statements in this press release that are forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,”"should,”"potential,”"continue,”"expects,”"anticipates,”"intends,”"plans,”"believes,”"estimates” and similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The Company’s actual results could differ materially from those anticipated in the forward-looking statements. The Company refers you to the cautionary statements and risk factors set forth in the documents it files with the Securities and Exchange Commission, including its most recent 10-KSB. The Company is not under any obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
IT&E INTERNATIONAL GROUP, INC. Consolidated Balance Sheets June 30, December 31, 2006 2005 ———— ———— (unaudited) Cash $ 5,441,041 $ 6,414,770 Accounts receivable (net of allowance for doubtful accounts of $90,000 for 2006 and $75,000 in 2005) 2,884,355 2,989,646 Unbilled revenue 422,428 183,938 Prepaid and other current assets 220,538 181,823 ———— ———— Total Current Assets 8,968,362 9,770,177 Property and equipment, net 396,436 275,263 Deposits 114,860 11,679 Finite life intangibles (net of accumulated amortization of $198,876 and of $39,625 in 2006 and 2005, respectively) 832,873 991,375 Goodwill 3,192,239 3,196,813 ———— ———— Total Assets $ 13,504,770 $ 14,245,307 ============ ============ Accounts payable $ 799,697 $ 585,590 Accrued payroll and employee benefits 450,657 351,238 Current portion of capital lease obligations 29,754 3,250 Current portion of notes payable to employees 244,113 101,437 Accrued relocation costs to officers 220,000 220,000 Deferred revenue – Initiation fees 790,115 922,484 Customer Advances 742,277 143,520 Deferred rent 84,629 22,670 Other accrued liabilities 411,311 433,745 ———— ———— Total Current Liabilities 3,772,553 2,783,934 Long-term capital lease obligations, less current portion 52,921 12,765 Notes payable to employees, less current portion 481,154 654,384 ———— ———— Total Liabilities 4,306,628 3,451,083 Stockholders’ equity: Preferred stock, $.001 par value, 10,000,000 shares authorized: Series D Convertible Preferred stock, $.001 par value, 16,500 shares authorized 11,500 shares issued and outstanding with a stated value of $11,500,000 8,105,938 8,105,938 Common stock, $.001 par value, 650,000,000 shares authorized, 60,448,875 shares issued and outstanding 60,449 60,449 Convertible warrants 3,108,944 3,108,944 Call option 170,729 285,118 Additional paid-in capital 2,852,091 2,504,427 Retained deficit (5,100,009) (3,270,652) ———— ———— Total Equity 9,198,142 10,794,224 ———— ———— Total Liabilities and Capital $ 13,504,770 $ 14,245,307 ============ ============ IT&E INTERNATIONAL GROUP, INC. Consolidated Statements of Operations (Unaudited) For the three months ended For the six months ended June 30, June 30, ———————— ————————- 2006 2005 2006 2005 ———– ———– ———— ———– Service revenue $ 4,746,420 $ 4,297,356 $ 9,490,958 $ 8,743,936 Reimbursement revenue 176,591 134,608 391,051 232,955 ———– ———– ———— ———– Total 4,923,011 4,431,964 9,882,009 8,976,891 Cost of revenue 3,469,663 3,141,455 7,292,585 6,254,412 ———– ———– ———— ———– Gross profit 1,453,348 1,290,509 2,589,424 2,722,479 Operating expenses: General and administrative 1,408,242 973,440 2,751,441 1,773,715 Sales and marketing 451,147 470,667 906,531 701,350 Depreciation and amortization 112,465 25,601 222,799 42,749 Officer compensation 393,634 242,096 651,403 448,843 ———– ———– ———— ———– Total Operating Expenses 2,365,488 1,711,804 4,532,174 2,966,657 ———– ———– ———— ———– Net Operating Loss (912,140) (421,295) (1,942,750) (244,178) Other Income (Expense) Interest income 70,409 2,318 134,451 2,318 Interest expense (11,669) (95,067) (21,057) (145,784) Loan fee amortization (72,281) (144,563) Fees on long-term debt (214,043) Non-cash financing costs (62,500) ———– ———– ———— ———– Total Other Income (Expense) 58,740 (165,030) 113,394 (564,572) Loss before income taxes (853,400) (586,325) (1,829,356) (808,750) Income taxes ———– ———– ———— ———– Net Loss $ (853,399) $ (586,325) $ (1,829,356) $ (808,750) =========== =========== ============ =========== Weighted average number of common shares outstanding-basic and fully-diluted 60,448,875 21,344,198 60,448,875 19,938,363 =========== =========== ============ =========== Net loss per share-basic and fully-diluted $ (0.01) $ (0.03) $ (0.03) $ (0.04) =========== =========== ============ ===========
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SOURCE: IT & E International Group, Inc.