TORONTO, March 27 /CNW/ - Cyberplex Inc. (TSX: CX), one of North
America's leading technology consulting firms, today announced financial
results for the fourth quarter and the year ended December 31, 2005.
Fourth quarter revenue of $1.39 million was lower than the $1.51 million
in revenue from the previous quarter and down from the $2.38 million recorded
during the same period a year ago. The loss for the quarter, before
amortization, interest income, goodwill impairment and various one time
accruals was $340,000, consistent with the loss of $335,000 realized in the
previous quarter and down from the operating profit of $362,000 generated
during the same period a year earlier.
Gross margin for the quarter was 42%, down from 46% generated in the
previous quarter and the largest five accounts in the quarter accounted for
approximately 61% of revenue. During the fourth quarter, 43% of the Company's
revenue was derived from accounts located in the United States.
Revenue for the year ended December 31, 2005 was $7.24 million, down 22%
from the $9.37 million recorded during 2004. The loss before amortization and
interest income was $628,000 compared with a profit of $1.56 million generated
a year earlier, and the net loss for the year was $1.13 million, or $0.03 per
share.
"2005 was a transitional year for Cyberplex" said Geoffrey Rotstein,
President and CEO of Cyberplex. "Although the second half of the year was
difficult, our balance sheet is strong. With over $5.28 million in cash and
short-term investments, we believe we are in a position to take advantage of
the opportunities that lie ahead. Our focus continues to be on growing the
business profitably, and management is committed to building a stronger
company, both through organic growth and selected acquisitions, that will
deliver value to its shareholders"
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
December 31, December 31,
2005 2005
------------- -------------
(unaudited) (unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 449,786 $ 2,025,289
Short-term investments 4,834,644 3,174,937
Accounts receivable, net of allowance for
doubtful accounts of $92,575
(December 31, 2004 - $210,996) 1,461,381 2,128,001
Prepaid expenses and sundry assets 160,587 291,933
------------- -------------
6,906,398 7,620,160
Capital assets 1,478,489 1,684,526
Goodwill - 449,136
------------- -------------
TOTAL ASSETS $ 8,384,887 $ 9,753,822
------------- -------------
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 1,249,241 $ 1,313,548
Deferred lease inducements - 10,482
Unearned revenue 8,967 11,157
------------- -------------
1,258,208 1,335,187
Future income taxes 39,000 162,019
Other long-term liabilities 1,292,798 1,413,042
------------- -------------
1,331,798 1,575,061
SHAREHOLDERS' EQUITY
Capital stock 70,334,560 70,286,139
Contributed surplus 307,067 272,925
Deficit (64,846,746) (63,715,490)
------------- -------------
5,794,881 6,843,574
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,384,887 $ 9,753,822
------------- -------------
------------- -------------
CYBERPLEX INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
Three Month Period Ended Twelve Month Period Ended
-------------------------------------------------------
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)
--------------------------- ---------------------------
Revenue $ 1,388,719 $ 2,382,215 $ 7,241,945 $ 9,372,198
Cost of sales 811,586 1,177,801 4,002,367 4,526,305
------------- ------------- ------------- -------------
Gross profit 577,133 1,204,414 3,239,578 4,845,893
Sales and
marketing
expenses 158,868 150,734 736,089 554,067
General and
administrative
expenses 1,065,017 691,768 3,131,616 2,728,604
Amortization of
capital assets 95,100 92,571 309,219 365,526
------------- ------------- ------------- -------------
1,318,985 935,073 4,176,924 3,648,197
Income (loss)
before the
undernoted (741,852) 269,341 (937,346) 1,197,696
Goodwill
impairment 449,136 - 449,136 -
Income (loss)
from operations (1,190,988) 269,341 (1,386,482) 1,197,696
Interest income 45,039 36,307 132,207 83,181
------------- ------------- ------------- -------------
Income(loss)
before income
taxes (1,145,949) 305,648 (1,254,275) 1,280,877
Income Taxes
(recovery)
Current - 9,433 - 9,433
Future (123,019) - (123,019) -
------------- ------------- ------------- -------------
Net income (loss) $ (1,022,930) $ 296,215 $ (1,131,256) $ 1,271,444
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Deficit -
beginning of
the period (63,823,816) (64,011,705) (63,715,490) (64,818,034)
Adjustment for
stock based
compensation - (168,900)
------------- ------------- ------------- -------------
Deficit - end
of period $ (64,846,746) $(63,715,490) $(64,846,746) $(63,715,490)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Weighted average
number of common
shares - basic 32,436,249 32,208,027 32,361,023 31,035,644
Weighted average
number of common
shares - diluted 32,436,249 33,223,254 32,361,023 32,162,122
Basic earnings
(loss) per
share $ (0.03) $ 0.01 $ (0.03) $ 0.04
Diluted earnings
(loss) per
share $ (0.03) $ 0.01 $ (0.03) $ 0.04
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%SEDAR: 00005639E
