TORONTO, Aug. 14 /CNW/ - Cyberplex Inc. (TSX : CX) today announced
financial results for its second quarter ended June 30, 2006.
Revenue for the three month period ended June 30, 2006 was $1.29 million
up from the $1.22 million generated in the previous quarter and lower than the
$1.86 million recorded during the same period a year ago. The loss before
amortization and interest income for the quarter was $54,000 compared to a
$131,000 operating loss recorded in the previous quarter and the $55,000 of
operating income generated during the same period a year earlier.
Gross margin for the quarter was 50%, up from the 44% recorded in the
previous quarter, and higher than the 45% recorded during the same period a
year ago. The Company's top five clients accounted for approximately 57% of
the quarterly revenue with 40% of the revenue derived from clients in the
United States. The company finished the quarter with cash and cash equivalents
of $8.14 million compared to $5.13 million at June 30, 2005.
Two exciting developments previously disclosed during the quarter
included:
<<
1. the acquisition of WebAffairs Inc., which increased the Company's
recurring revenue, and
2. the closing of a $3.25 million private placement resulting in over
$8.14 million in cash at quarter end.
>>
The acquisition of WebAffairs was completed on June 07, 2006. As
disclosed in the press release, WebAffairs is unique in its ability to offer
complex technology solutions to small and midsized organizations through long
term, recurring licenses by using internally built solutions and interfaces.
As a result of these technologies, WebAffairs has been able to leverage their
intellectual property into a recurring revenue model that the Company hopes to
build upon in the coming quarters.
On June 29, 2006, Cyberplex successfully completed a non-brokered private
placement for gross proceeds of $3.25 million. As a result of this financing,
Cyberplex further strengthened its balance sheet with over $8.14 million in
cash. As a result of this transaction, the Company is well positioned to
continue searching for value creating acquisitions.
"The second quarter of 2006 was significant for Cyberplex." said Geoffrey
Rotstein, chief executive officer of Cyberplex. "By stabilizing the revenue,
moving closer to operational profitability, completing an acquisition and
closing a financing, we have positioned ourselves well for the remainder of
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),
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, Chicago and
Halifax.
About WebAffairs
WebAffairs Inc. (www.webaffairs.com) based in Toronto, provides Internet
solutions to companies in Canada and abroad. Established in 1999, it offers a
full-spectrum of creative and technical services to a wide range of
industries. From custom and template website development to Search Engine
Optimization, WebAffairs combines fresh design, open & available
communication, and practical strategies to meet business targets. WebAffairs
also owns and operates ArtAffairs, the leading Internet solutions developer
and business to business portal for the Art and Framing Industry in North
America.
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CYBERPLEX INC.
CONSOLIDATED BALANCE SHEETS
as at as at
June 30, December 31,
2006 2005
(unaudited) (unaudited)
------------- -------------
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 472,096 $ 449,786
Short-term investments 7,663,132 4,834,644
Accounts receivable, net of allowance
for doubtful accounts of $134,581
(December 31, 2005 - $92,575) 1,008,424 1,461,381
Prepaid expenses and sundry assets 246,550 160,587
------------- -------------
9,390,202 6,906,398
Capital assets 1,376,964 1,478,489
Goodwill 657,226 -
Intangible assets, net 230,658 -
------------- -------------
TOTAL ASSETS $ 11,655,050 $ 8,384,887
------------- -------------
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 1,108,085 $ 1,249,241
Unearned revenue 27,968 8,967
Note payable - short term 150,000 -
------------- -------------
1,286,053 1,258,208
Future income taxes 39,000 39,000
Other long-term liabilities 1,347,197 1,292,798
------------- -------------
1,386,197 1,331,798
SHAREHOLDERS' EQUITY
Capital stock 8,731,224 70,334,560
Contributed surplus 333,334 307,067
Deficit (81,758) (64,846,746)
------------- -------------
8,982,800 5,794,881
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 11,655,050 $ 8,384,887
------------- -------------
------------- -------------
CYBERPLEX INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
Three Month Period Ended Six Month Period Ended
--------------------------- ---------------------------
June 30, 2006 June 30, 2005 June 30, 2006 June 30, 2005
(unaudited) (unaudited) (unaudited) (unaudited)
------------- ------------- ------------- -------------
Revenue $ 1,293,075 $ 1,858,878 $ 2,510,188 $4,122,183
Cost of sales 649,110 1,013,416 1,328,848 2,150,255
------------- ------------- ------------- -------------
Gross profit 643,965 845,462 1,181,340 1,971,928
Sales and
marketing
expenses 181,863 175,724 365,167 342,864
General and
administrative
expenses 516,176 614,692 1,001,571 1,275,383
Amortization of
capital assets
& intangibles
assets 77,525 72,275 142,824 145,038
------------- ------------- ------------- -------------
775,564 862,691 1,509,562 1,763,285
Income(loss) from
operations (131,599) (17,229) (328,222) 208,643
------------- ------------- ------------- -------------
Interest income 49,841 27,334 95,979 56,930
------------- ------------- ------------- -------------
Income(loss)
before income
taxes (81,758) 10,105 (232,243) 265,573
------------- ------------- ------------- -------------
Net income $ (81,758) $ 10,105 $ (232,243) $ 265,573
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Deficit -
beginning of the
period (64,997,231) (63,460,022) (64,846,746) (63,715,490)
Reduction in
stated capital 64,997,231 - 64,997,231 -
------------- ------------- ------------- -------------
Deficit - end of
period $ (81,758) $(63,449,917) $ (81,758) $(63,449,917)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Weighted average
number of common
shares - basic 32,648,219 32,370,738 32,542,820 32,289,832
Weighted average
number of common
shares - diluted 32,648,219 33,183,536 32,542,820 33,128,853
Basic earnings
(loss) per share $ (0.00) $ 0.00 $ (0.00) $ 0.01
Diluted earnings
(loss) per share $ (0.00) $ 0.00 $ (0.00) $ 0.01
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