307% revenue growth and earnings per share of 8 cents
TORONTO, May 7 /CNW/ - Cyberplex Inc. (TSX:CX) a leader in online performance-based advertising solutions, customer acquisition strategies and technology development, today announced its first quarter financial results for the period ended March 31, 2009.
- Revenue of $32 million increased 307% from the same quarter in the
previous year
- Earnings before amortization, interest and other items increased by
$4.0 million to $4.2 million
- Net income of $4.1 million
- Net cash balance of $4.7 million and $7.1 million of available credit
facilities
- Working capital of $8.9 million
Cyberplex continued the trend of producing record results despite the challenging global economic conditions. The compelling value proposition of measurable, ROI-based results continues to win over advertisers.
"We are pleased to see continued validation and adoption of our business model by advertisers and publishers alike. We look forward to building upon this foundation through continued investment in our technology platform and distribution capabilities to deliver enhanced value to our clients," said Geoffrey Rotstein, President and Chief Executive Officer of Cyberplex.
2009 First Quarter Highlights
- Delivered the highest revenue in the history of the Company
- Ranked 2nd by Branham Group as 'Top 20 Movers and Shaker', and ranked
as one of the 'Fastest Growing Technology Companies' in Canada
- Launched ShopCauses.com, a proprietary, innovative social media
application delivered through Facebook
- Grew international traffic sources and advertising relationships
- Continued to integrate the Technology Services division with the web
advertising platform to improve the capacity of distribution channels
and to better position the Company for future growth
Results for the First Quarter of 2009
First quarter revenue of $32.1 million was an increase of 307% over the $7.9 million generated last year. This growth was achieved primarily from the Web Advertising division through the addition of new publishers, the increase in campaign budgets and the continued momentum of proprietary publishing initiatives. Income before amortization, interest and income taxes for the quarter increased to $4.3 million, up from $221,000 in the first quarter of 2008. Gross margin for the quarter was 31% compared to 32% in the first quarter of 2008, which are in line with Company expectations.
Conference Call Details
In conjunction with the release, Cyberplex will host a conference call on Thursday, May 7th, 2009 at 4:30 p.m. EST to discuss the financial results. To access the call, please dial 1-888-892-3255. Please call five minutes prior to the call.
A replay of the conference call will be available as of 12:00 a.m. the same day, until midnight May 14th, 2009. To access the replay dial 1-800-937-6305 followed by the pass-code 214817.
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, along with technology design, development and solutions specialists to develop and implement web-based programs and solutions that have a proven record in delivering 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.
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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
March 31, 2009 December 31, 2008
---------------- ----------------
(unaudited) (audited)
ASSETS
Current Assets:
Cash, cash equivalents and
short-term investments $ 5,650,377 $ 5,364,384
Accounts receivable, net of allowance
for doubtful accounts of $1,787,159
(2008 - $1,531,229) 13,218,190 14,079,236
Prepaid expenses and other assets 2,952,734 668,503
---------------- ----------------
21,821,301 20,112,123
Capital assets 1,123,919 993,868
Goodwill 14,031,813 13,936,813
---------------- ----------------
$ 36,977,033 $ 35,042,804
---------------- ----------------
---------------- ----------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Bank indebtedness $ 953,720 $ 3,535,264
Accounts payable and accrued
liabilities 11,584,416 11,529,047
Unearned revenue 334,835 153,813
Deferred lease inducements 62,323 62,323
---------------- ----------------
12,935,294 15,280,447
Deferred lease inducements 140,877 153,774
Shareholders' equity 23,900,862 19,608,583
---------------- ----------------
$ 36,977,033 $ 35,042,804
---------------- ----------------
---------------- ----------------
CYBERPLEX INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended
March 31, 2009 March 31, 2008
(unaudited) (unaudited)
---------------- ----------------
Revenue $ 32,141,538 $ 7,896,880
Cost of revenue 22,287,473 5,336,946
---------------- ----------------
9,854,065 2,559,934
Expenses
Sales and marketing 4,311,216 1,493,314
General and administrative 1,763,974 919,803
Foreign exchange (gain) (472,584) (74,363)
---------------- ----------------
5,602,606 2,338,754
Income before the undernoted 4,251,459 221,180
Amortization of capital assets 77,609 74,197
Amortization of intangible assets - 86,330
Income from operations 4,173,850 60,653
Interest expense (41,879) (21,379)
Interest income 1,138 12,584
---------------- ----------------
Net income 4,133,109 51,858
Unrealized gain on available for sale
securities 50,740 -
---------------- ----------------
Comprehensive income 4,183,849 51,858
---------------- ----------------
---------------- ----------------
Basic earnings per share $ 0.08 $ 0.00
Diluted earnings per share $ 0.07 $ 0.00
Weighted average number of common
shares used in income per share
Basic 53,623,995 47,120,956
Diluted 56,775,060 47,856,746
%SEDAR: 00005639E