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IT&Amp;E International Group Reports Second Quarter Results

Posted on: Wednesday, 16 August 2006, 18:00 CDT

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)                        ===========  ===========  ============  =========== 

 For more information, contact:  Hulus Alpay (212) 508-9600 Makovsky + Company  

SOURCE: IT & E International Group, Inc.

Source: MARKET WIRE

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