TORONTO, Nov. 4 /CNW/ - Cyberplex Inc. (TSX : CX) today announced
financial results for its third quarter ended September 30, 2005.
Revenue of $1.41 million was down from the $1.86 million generated in the
previous quarter and lower than the $2.30 million recorded during the same
period a year ago. The loss before amortization and interest income for the
quarter was $335,000 compared to a $55,000 operating profit generated in the
previous quarter and the $388,000 generated during the same period a year
earlier. The resulting net loss for the quarter was $374,000. Incorporated
into these third quarter figures, as part of the general and administrative
expenses, was a significant foreign exchange loss, due to the devaluation of
the U.S. dollar, totaling $92,000 and a one-time charge resulting from various
strategic acquisition related initiatives totaling $142,000.
Gross margin for the quarter was 49%, up from the 45% recorded the
previous quarter, and lower than the 55% recorded during the same period a
year ago. The Company's top five clients accounted for approximately 62% of
the quarterly revenue with 31% of the revenue derived from clients in the
United States. The company finished the period ended September 30, 2005 with
cash and short-term investments of $5.21 million compared to $5.13 million at
June 30, 2005. Days sales outstanding were improved to 69 days, an improvement
of 10 days while compared to 79 days at the end of third quarter of 2004.
"Although the third quarter was a difficult one for our professional
services business, we continue to make progress shifting our business toward
the attractive, higher growth and recurring revenue oriented managed services
segment" said Dean Hopkins, Chief Executive Officer of Cyberplex, "The initial
response from our customers regarding our Managed Monitoring offer has been
encouraging."
Subsequent to the end of the quarter, Cyberplex's Board of Directors
authorized management to seek TSX acceptance of a Normal Course Issuer Bid.
This proposed share repurchase program, which is subject to TSX approval, will
authorize the Company to repurchase, from time to time, on the Toronto Stock
Exchange, up to approximately 10% of Cyberplex's public float over a 12 month
period. Any common shares purchased by Cyberplex during the course of the
Normal Course Issuer Bid will be cancelled.
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 10 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 Atlanta, Austin and Halifax.
<<
CYBERPLEX INC.
CONSOLIDATED BALANCE SHEETS
as at as at
September 30, December 31,
2005 2004
------------- -------------
(unaudited) (unaudited)
ASSETS
Current Assets:
Cash, cash equivalents and short-term
investments $ 5,208,662 $ 5,200,226
Accounts receivable, net of allowance for
doubtful accounts of $ 137,389
(December 31, 2004 - $ 210,996) 1,396,805 2,128,001
Prepaid expenses and sundry assets 551,446 291,933
------------- -------------
7,156,913 7,620,160
Capital assets 1,538,586 1,684,526
Goodwill 449,136 449,136
------------- -------------
TOTAL ASSETS $ 9,144,635 $ 9,753,822
------------- -------------
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 834,444 $ 1,313,548
Deferred lease inducements - 10,482
Unearned revenue 7,260 11,157
------------- -------------
841,704 1,335,187
Future income taxes 162,019 162,019
Other long-term liabilities 1,373,398 1,413,042
------------- -------------
1,535,417 1,575,061
SHAREHOLDERS' EQUITY
Capital stock 70,591,330 70,559,064
Deficit (63,823,816) (63,715,490)
------------- -------------
6,767,514 6,843,574
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,144,635 $ 9,753,822
------------- -------------
------------- -------------
CYBERPLEX INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
Three Month Period Ended Nine Month Period Ended
--------------------------- ---------------------------
September 30, September 30, September 30, September 30,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)
------------- ------------- ------------- -------------
Revenue $ 1,405,099 $ 2,304,196 $ 5,527,282 $ 6,713,669
Cost of sales 714,582 1,038,201 2,864,837 3,072,191
------------- ------------- ------------- -------------
Gross profit 690,517 1,265,995 2,662,445 3,641,478
Sales and
marketing
expenses 139,904 159,738 482,768 475,873
General and
administrative
expenses 885,669 718,216 2,161,052 1,964,295
------------- ------------- ------------- -------------
1,025,573 877,954 2,643,820 2,440,168
Income before
the undernoted (335,056) 388,041 18,625 1,201,310
Amortization (69,081) (89,932) (214,119) (272,955)
Gain on settlement
of long-term notes
payable - - - -
Interest income 30,238 13,853 87,168 46,874
Interest on long-
term debt - - - -
------------- ------------- ------------- -------------
Income before
income taxes (373,899) 311,962 (108,326) 975,229
Provision for
income tax - - - -
------------- ------------- ------------- -------------
Net income $ (373,899) $ 311,962 $ (108,326) $ 975,229
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Deficit - beginning
of the period (63,449,917) (64,323,667) (63,715,490) (64,818,034)
Adjustment for
stock based
compensation - - - (168,900)
------------- ------------- ------------- -------------
Deficit - end of
period $(63,823,816) $(64,011,705) $(63,823,816) $(64,011,705)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Weighted average
number of common
shares - basic 32,425,858 31,803,679 32,335,672 30,641,997
Weighted average
number of common
shares - diluted 33,132,724 33,203,987 33,144,167 32,042,305
Basic earnings
per share $ (0.01) $ 0.01 $ (0.00) $ 0.03
Diluted earnings
per share $ (0.01) $ 0.01 $ (0.00) $ 0.03
>>
%SEDAR: 00005639E
