TORONTO, May 4 /CNW/ - Cyberplex Inc. (TSX : CX) today announced
financial results for its first quarter ended March 31, 2006.
Sales for the three month period ended March 31, 2006 were $1.21 million,
down from the $1.39 million generated in the previous quarter and lower than
the $2.26 million recorded during the same period a year ago. The loss before
amortization and interest income for the quarter was $131,000 compared to a
$346,000 operating loss generated in the previous quarter and the $298,000 of
operating income generated during the same period a year earlier. The loss in
the fourth quarter of 2005 included a one-time restructuring accrual and other
various one-time related expenses. The net loss for the first quarter of 2006
was $150,000.
Gross margin for the quarter was 44%, up from the 42% recorded in the
previous quarter, and lower than the 50% recorded during the same period a
year ago. The Company's top five clients accounted for approximately 65% of
the quarterly revenue with 52% of the revenue derived from clients in the
United States. The company finished the quarter with cash and cash equivalents
of $5.41 million compared to $5.28 million at December 31, 2005. Days sales
outstanding improved to 46 days, down significantly from the 80 days noted at
December 31, 2005.
"The first quarter of 2006 was a rebuilding quarter for the Company."
said Geoffrey Rotstein chief executive officer of Cyberplex. "During the
quarter, we focused on many different initiatives to help further define and
grow our professional services practice, while at the same time actively
pursued opportunities to differentiate our revenue stream. With a strong
balance sheet - over $5.4 million in cash - and an experienced team, we will
continue to search for value creating acquisitions in 2006."
About Cyberplex
Cyberplex Inc. (www.cyberplex.com) is a specialized team of management
and technology consultants who are dedicated to helping clients enhance,
automate and manage technology solutions that improve business processes.
With over 12 years of experience serving Fortune 1000 clients including
Thomson, Atlantic Lottery Corporation, Advanced Micro Devices (AMD), Bank of
Montreal (BMO), Scotiabank, SunTrust Banks and the Royal Bank of Canada,
Cyberplex is frequently the firm of choice for business leaders looking for
reliable solutions. Cyberplex serves clients across Canada and the US, and is
headquartered in Toronto, Canada with offices in Arlington, Austin and
Halifax.
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CYBERPLEX INC.
CONSOLIDATED BALANCE SHEETS
as at as at
March 31, December 31,
2006 2005
-------------- -------------
(unaudited) (unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 430,319 $ 449,786
Short-term investments 4,977,485 4,834,644
Accounts receivable, net of allowance for
doubtful accounts of $92,644
(December 31, 2005 - $92,575) 619,717 1,461,381
Prepaid expenses and sundry assets 347,190 160,587
-------------- -------------
6,374,711 6,906,398
Capital assets 1,428,982 1,478,489
-------------- -------------
TOTAL ASSETS $ 7,803,693 $ 8,384,887
-------------- -------------
-------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabil $ 844,569 $ 1,249,241
Unearned revenue 300 8,967
-------------- -------------
844,869 1,258,208
Future income taxes 39,000 39,000
Other long-term liabilities 1,260,598 1,292,798
-------------- -------------
1,299,598 1,331,798
SHAREHOLDERS' EQUITY
Capital stock 70,334,560 70,334,560
Contributed surplus 321,897 307,067
Deficit (64,997,231) (64,846,746)
-------------- -------------
5,659,226 5,794,881
-------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,803,693 $ 8,384,887
-------------- -------------
-------------- -------------
CYBERPLEX INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
Three Month Period Ended
----------------------------
March 31, 2006 March 31, 2005
(unaudited) (unaudited)
-------------- -------------
Revenue $ 1,217,113 $ 2,372,305
Cost of sales 679,738 1,245,839
-------------- -------------
Gross profit 537,375 1,126,466
Sales and marketing expenses 183,304 167,140
General and administrative expenses 485,395 660,691
Amortization of capital assets 65,299 72,763
-------------- -------------
733,998 900,594
Income(loss) from operations (196,623) 225,872
Interest income 46,138 29,596
-------------- -------------
Income(loss) before income taxes (150,485) 255,468
Provision for Income tax - -
-------------- -------------
Net income $ (150,485) $ 255,468
-------------- -------------
Deficit - beginning of the period (64,846,746) (63,715,490)
-------------- -------------
Deficit - end of period $(64,997,231) $(63,460,022)
-------------- -------------
-------------- -------------
Weighted average number of common
shares - basic 32,436,250 32,358,027
Weighted average number of common
shares - diluted 32,436,250 33,323,342
Basic earnings (loss) per share $ (0.00) $ 0.01
Diluted earnings (loss) per share $ (0.00) $ 0.01
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