Business
Cyberplex Announces Fourth Quarter and Year-End Financial Results for 2006
Cyberplex Announces Fourth Quarter and Year-End Financial Results for 2006.
About this update from Eq Inc.
[{"type":"text","content":"\n\n\n\nTORONTO, March 22 /CNW/ - Cyberplex Inc. (TSX : CX), announced its\nfinancial results for the fourth quarter and the fiscal year ended\nDecember 31, 2006.\n\n\nBusiness highlights for 2006:\n\n\n- Acquisition of WebAffairs Inc. which enabled the Company to service\n small and medium sized organizations with leading creative\n technologies and proprietary solutions\n- Secured a private placement of $3.25 million which further\n strengthened the Company's balance sheet\n- Elimination of a $13.5 million lease obligation by negotiating a\n termination agreement for the leased facility in Toronto\n- Acquisition of Incentaclick Media Group Inc. which diversified the\n Company's business model into on-line advertising, creating a\n different and more scaleable revenue model leveraging one of the\n largest growth areas of the Internet\n\n\nFourth quarter revenue of $1.58 million was an increase of 27% over the\n$1.24 million generated in the previous quarter and an increase of 14% over\nthe $1.39 million recorded during the same period a year ago. The revenue\nincrease is attributed to consistent revenue performance from the technology\nservices division and the incremental revenue relating to acquisition of\nIncentaclick, completed at the beginning of December. The loss before\namortization and interest income for the fourth quarter was $163,000, higher\nthan the loss of $114,000 realized in the previous quarter and a significant\nimprovement over the $647,000 in losses generated during the same period a\nyear earlier.\n\n\nGross margin for the quarter was 40%, down from 51% generated in the\nprevious quarter. The significant change in gross margin resulted from the\ninclusion of Incentaclick, as the margin from the services business was\nrelatively consistent at 47%. The largest five accounts in the quarter\naccounted for approximately 61% of revenue and 32% of the Company's revenue\nwas generated from clients located in the United States.\n\n\nRevenue for the year ended December 31, 2006 was $5.33 million, down 26%\nfrom the $7.24 million recorded during 2005. The loss before amortization and\ninterest income was $463,000 compared with a loss of $628,000 generated a year\nearlier. The net loss for the year, after accounting for an additional\n$784,000 of accelerated amortization due to the relocation of our Toronto\noffices, ...