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Earnings per share of 1.2 cents while revenue more than doubles year- over-year
TORONTO, Nov. 12 /CNW/ - Cyberplex Inc. (TSX: CX) a leader in web advertising solutions, online customer acquisition strategies and technology development, today announced record third-quarter results and its 8th consecutive quarter of revenue growth. Cyberplex's total revenue for the third quarter of 2008 was $11.0 million, an increase of 134% over the $4.7 million reported for third quarter of 2007.
Financial Highlights
--------------------
- Online advertising revenue, through the CX Digital Media division,
increased by 172% to $9.9 million, compared to the same period in
2007
- Earnings before amortization, interest and other items increased by
115%, to over $750,000, compared to the previous quarter
- Net income increased by 207%, to over $633,000 for the quarter which
translates into 1.2 cents a share
- Sequential quarterly revenue growth of 16%
- Positive operating cash flow of over $355,000 for the quarter
- No outstanding debt
"It was another outstanding quarter," said Geoffrey Rotstein, President
and CEO, Cyberplex Inc. "Overall demand for our performance-based marketing
solutions continues to grow and we are starting to demonstrate the significant
operating leverage and profitability inherent within our business model."
Third Quarter Highlights
------------------------
- Creation of an Integration Marketing Solutions team within the CX
Digital Media division
- Significant technology investment within CX Digital Media's
proprietary affiliate network, providing enhanced stability and
scalability including a move to a tier one hosting facility
- Recurring customers accounting for approximately 75% of CX Digital
Media's active customer base
- Average revenue per customer, in the CX Digital Media division, grew
by over 9% quarter-over-quarter
During the third quarter, the Company launched a new offering by creating
a team that focuses solely on integrated marketing solutions. The mandate of
this team is to optimize the conversion potential for all campaigns that run
through CX Digital Media's Affiliate Network and to work with advertisers to
best position their offers for online performance based marketing. This team
focuses on messaging, creative optimization, conversion optimization,
usability, and provides insight into the overall competitive landscape
associated within targeted verticals.
"We believe that our third quarter and year-to-date results reflect the
continued focus that we place on delivering measurable results to our
clients," Rotstein added. "Despite the difficult economic times, we have
continued to deliver tremendous results and believe that our focus on
performance based marketing positions us extremely well in the industry."
Operational Results:
--------------------
For the quarter ended September 30, 2008, the Company generated revenue of
$11.0 million, an increase of $6.3 million or 134% when compared to the $4.7
million generated in the third quarter of 2007. This increase resulted
directly from the online advertising division, which generated $9.9 million in
revenue and a year-over-year revenue growth rate of 172%. Revenue from the
technology services division of approximately $1.2 million grew by 18% from
last quarter.
Gross profit for the quarter ended September 30, 2008 was $3.7 million
resulting in a gross margin of 34% compared to $3.2 million or 34% gross
margin last quarter. Earnings before amortization, interest and other items
was over $750,000, an increase of 115% over last quarter.
Outlook:
--------
As the Company continues to bolster its advertising division and develop
its unique offers and proprietary technologies, the trend of greater operating
leverage should continue. Rotstein added, "Going forward, we expect to
continue the momentum of revenue growth and maintain our profitability."
As previously reported, the Company announced a Normal Course Issuer Bid.
"We believe that the common shares have been trading at prices that are below
the underlying value of the Corporation," said Isaac Osiel, CFO, Cyberplex
Inc. "As a result, we believe that the common shares are a great investment
for the Company."
Conference Call Details:
------------------------
In conjunction with this announcement, Cyberplex will host a conference
call today, Wednesday, November 12, 2008 at 4:30pm EST to discuss the results
and the financial performance. To access the call, please dial 888-892-3255.
Please call five minutes prior to the call. A replay of the conference call
will be available as of 12:00pm EST the same day, until midnight November 31,
2008. To access the replay dial 1-800-937-6305 followed by the passcode
741749.
About Cyberplex
---------------
Cyberplex Inc. (www.cyberplex.com) is a leader in providing web
advertising solutions, online customer acquisition strategies and technology
development. The Company, through its subsidiaries, leverages its proprietary
affiliate network, robust advertising relationships and experience, and
technology design, development and solutions specialists to develop and
implement web-based programs and solutions that deliver results.
With over 14 years of experience serving Fortune 1000 clients including
FTD, Xerox, Sony Canada, IAC, Atlantic Lottery Corporation, Vista Print,
Aecon, Ontario Power Generation, Scotia Bank and the Royal Bank of Canada,
Cyberplex is frequently the firm of choice for business leaders looking for
effective and reliable online solutions. Cyberplex serves clients across
Canada and the US, and is headquartered in Toronto, Canada with offices in San
Diego and Halifax.
Forward-Looking Statements
This news release may contain forward-looking statements that are based on
management's current expectations and are subject to known and unknown
uncertainties and risks, which could cause actual results to differ materially
from those contemplated or implied by such forward-looking statements.
Cyberplex is under no obligation to update any forward-looking statements
contained herein should material facts change due to new information, future
events or otherwise.
CYBERPLEX INC.
CONSOLIDATED BALANCE SHEETS
as at as at
September 30, 2008 December 31, 2007
------------------- ------------------
(unaudited) (unaudited)
ASSETS
Current Assets:
Cash, cash equivalents and
short-term investments $ 1,368,783 $ 473,177
Accounts receivable, net
of allowance for doubtful
accounts of $1,014,865
(2007 - 752,015) 5,613,773 4,264,373
Prepaid expenses and other
assets 786,649 338,024
------------------- ------------------
7,769,205 5,075,574
Capital assets 1,000,759 1,019,496
Goodwill 10,382,409 5,959,615
Intangible assets 4,814 187,157
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$ 19,157,187 $ 12,241,842
------------------- ------------------
------------------- ------------------
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Bank indebtedness $ - $ 678,967
Accounts payable and accrued
liabilities 3,940,238 3,185,545
Deferred lease inducements 12,893 51,582
Unearned revenue 239,392 149,535
------------------- ------------------
4,192,523 4,065,629
Deferred lease inducements 216,097 216,097
------------------- ------------------
216,097 216,097
Shareholders' equity 14,748,567 7,960,116
------------------- ------------------
$ 19,157,187 $ 12,241,842
------------------- ------------------
------------------- ------------------
CYBERPLEX INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended Nine months ended
September September September September
30, 2008 30, 2007 30, 2008 30, 2007
(unaudited) (unaudited) (unaudited) (unaudited)
------------- ------------- ------------- -------------
Revenue $ 11,017,514 $ 4,715,515 $ 28,385,998 $ 12,189,994
Cost of revenue 7,318,380 2,771,737 18,911,217 7,302,318
------------- ------------- ------------- -------------
3,699,134 1,943,778 9,474,781 4,887,676
Sales and
marketing 2,090,279 1,090,959 5,419,431 2,567,757
General and
administrative 1,057,858 787,917 2,977,633 2,269,547
Foreign
exchange
(gain) loss (201,516) 210,214 (246,103) 352,446
2,946,621 2,089,090 8,150,961 5,189,750
Income (loss)
before
undernoted items 752,513 (145,312) 1,323,820 (302,074)
Amortization of
capital assets 81,068 72,151 230,096 188,426
Amortization of
intangible
assets 26,442 107,220 182,343 302,442
Income (loss)
from operations 645,003 (324,683) 911,381 (792,942)
Interest
expense (15,765) - (48,584) -
Interest
income 3,929 8,850 28,750 50,743
Income (loss)
before income
taxes 633,167 (315,833) 891,547 (742,199)
Income tax
recovery:
Future - (35,257) - (105,771)
------------- ------------- ------------- -------------
Income (loss) 633,167 (280,576) 891,547 (636,428)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Other comprehensive
income (loss)
Unrealized gain
on marketable
securities - (2,970) - (753)
------------- ------------- ------------- -------------
Income (loss)
and other
comprehensive
income (loss) $ 633,167 $ (283,546) $ 891,547 $ (637,182)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Basic and diluted
earnings (loss)
per share $ 0.01 $ (0.01) $ 0.02 $ (0.02)
Weighted average
number of common
shares used in:
Basic 53,002,000 42,717,839 50,822,465 42,297,860
Diluted 53,749,235 42,717,839 51,550,427 42,297,860