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ITRONICS
REPORTS 2007 FINANCIAL RESULTS: INCREASED GROSS PROFIT; FERTILIZER SALES UP 28
PERCENT; SALES TOTAL $2.34 MILLION
RENO,
Nevada, April 16, 2008 -- Itronics Inc. (OTCBB: ITRO; Frankfurt and Berlin
Stock Exchanges: ITG)
today reported a positive gross profit of $124,160 for 2007, up from $75,193 in
2006, an increase of 65 percent. Total sales increased by 25 percent to
$2.34 million from $1.87 million for the full year.
The annual report for the
year 2007 on Form 10KSB is available on the U.S. Securities & Exchange web
site at http://www.sec.gov .
GOLD’n
GRO liquid fertilizer sales were up 28 percent in 2007 compared to the prior
year despite sales growth in the 2007 fourth quarter being flat due to water
shortages and related fertilization curtailment in California’s Central
Valley. Sales growth resumed in the first quarter 2008 and is expected to
continue for the entire year.
Silver sales in the
fourth quarter of 2007 declined by 17 percent and total sales for 2007
decreased by 24 percent compared to the prior year primarily due to electrical
power fluctuations outside the Company’s control. Silver sales
expanded in the first quarter 2008 and this expansion is expected to continue
through the year. The silver price is at historical highs and is
contributing to the 2008 sales increase.
Photo
Service sales increased 162 percent for the full year 2007 due to three new
spent photochemical supply contracts and the sale of a photochemical silver
concentrator. In 2008 the Company expects to continue to expand used
photochemical supplies and to sell another photochemical silver concentrator to
produce an increase for the year.
Mining
Technical Services were flat in 2007 while the division was making a transition
from deriving its income from technical services to an Internet based revenue
model through the newly launched Insidemetals.com internet information
portal. In 2008 Mining Technical Services is continuing to advance its
web based InsideMetals.com Gold Producer Stocks information portal: www.insidemetals.com , and it is
obtaining and completing new technical services contracts. Both
initiatives are significantly increasing revenues in 2008.
During the year the
Company obtained $2.1 million in financing to fund operations and to continue
its expansion. While additional funding will be necessary in 2008, the
Company said it has begun efforts to seek alternative methods that have less
impact on the stock price and number of shares outstanding.
Goals outlined for 2008
are to continue to expand GOLD’n GRO liquid fertilizer sales and silver
sales; expand used photochemical raw material supplies by acquiring new
photoservices contracts; implement the GOLD’n GRO Guardian liquid deer
repellent fertilizer manufacturing and marketing; and continue to acquire
financing to support growth. On-going sales growth is expected to produce
a significant increase in Gross Profit in 2008.
The
report reviews progress in implementing the Company’s eight part long
term growth plan. The Company’s primary focus is on building the
GOLD’n GRO brand by expanding fertilizer sales which are now the driver
for overall sales growth in the fertilizer segment, and to begin manufacturing
and selling GOLD’n GRO Guardian Deer Repellent. Silver refining is
being expanded to accommodate increased volumes of silver produced by
fertilizer sales expansion. InsideMetals.com is rapidly gaining
recognition as a global internet brand and is now receiving visits from more
than 170 countries world-wide.
Operating
loss increased 32 percent compared to the prior year, primarily due to
increased sales and marketing expenses. Net loss increased by 175 percent
due primarily to increased loss on derivative instruments.
Results
for the year 2007 and the fourth quarter ended December 31, 2007, together with
comparative figures for 2006, are summarized below:
ITRONICS
INC.
For
the Quarter
For the 12 Months
Ended
December 31
Ended December
31
2007
2006
2007
2006
REVENUE
Fertilizer
$ 251,919 $251,179 $1,663,361
$1,297,282
Silver
$ 108,524 $131,455 $
316,815 $
418,265
Photo Services
$ 40,722 $
67,723 $
334,965
$
128,033
Mining
Technical Services
$
12,198 $
3,127 $
27,155
$
28,338
Total Revenues
$413,363 $453,484 $2,342,296
$1,871,918
Gross Profit(Loss)
($27,774) ($45,971) $
124,160 $
75,193
Operating Income(Loss)
($784,747)
($632,626)
($2,943,428)
($2,224,506)
Other Income(Expense)
($145,774)
($257,377)
( $740,892)
($1,043,905)
(including interest)
Gain(Loss) on Derivative
Instruments
($8,392,358) $188,930
($6,798,204)
($ 541,474)
(non cash item related to
financing)
Net Income(Loss)
($9,322,879)
($701,073)
($10,482,524) ($3,809,885)
About
Itronics
Itronics, through its
subsidiary, Itronics Metallurgical, Inc., is the only company in the world with
a fully permitted "Beneficial Use Photochemical, Silver, and Water
Recycling" plant located in the United States which can convert
used photoliquids into pure silver and liquid fertilizers. At the
Company’s Reno, Nevada factory more than 99 percent of the silver and
virtually all the other toxic heavy metals are extracted from used photoliquids. The purified liquids are
converted into environmentally beneficial, chelated, micronutrient
and multinutrient liquid fertilizers sold under the GOLD'n GRO trademark.
The silver is refined and sold as bullion and 5 troy ounce, 0.999 pure, Silver
Nevada Miner numismatic bars. The environmentally friendly liquid
fertilizers can be used for lawns and houseplants, and are available, along
with GOLD'n GRO liquid fertilizer injectors, at the Company's
"e-store" catalog at http://goldngro.com . The popular
Silver Nevada Miner bars are available at the Company's “e-store”
catalog at http://www.itromet.com ..
Headquartered in Reno,
Nevada, Itronics Inc. is a "Creative Environmental Technology"
company and a world leader in photochemical recycling. The Company also
provides environmentally compatible mining technology development, project
planning, and technical services to the gold mining industry and operates the
popular InsideMetals.com web site, http://www.insidemetals.com.
which provides a value-added WORLD VIEW of Gold Producer Stocks, Mineral
Producer Stocks, Junior Gold Stocks, and Junior Mineral Stocks. Itronics
has received numerous domestic and international awards that recognize its ability
to successfully create and implement new environmentally compatible recycling
and fertilizer technologies.
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VISIT
OUR WEB SITE: http://www.itronics.com
("Safe
Harbor" Statement
under the Private Securities Litigation Reform Act of 1995: This press release
contains or may contain forward-looking statements such as statements regarding
the Company's growth and profitability, growth strategy, liquidity and access
to public markets, operating expense reduction, and trends in the industry in
which the Company operates. The forward-looking statements contained in
this press release are also subject to other risks and uncertainties, including
those more fully described in the Company's filings with the Securities and
Exchange Commission. The Company assumes no obligation to update these
forward-looking statements to reflect actual results, changes in risks,
uncertainties or assumptions underlying or affecting such statements, or for
prospective events that may have a retroactive effect.)