TORONTO, Nov. 13 /CNW/ - Cyberplex Inc. (TSX:CX) today announced
financial results for its third quarter ended September 30, 2006.
Revenue for the three month period ended September 30, 2006 was
$1.24 million, down slightly from the $1.29 million generated in the previous
quarter and lower than the $1.51 million recorded during the same period a
year ago. The loss before amortization and interest income for the quarter was
$114,000 compared to a $54,000 operating loss recorded in the previous quarter
and the $335,000 operating loss generated during the same period a year
earlier.
Gross margin for the quarter was 51%, up from the 50% recorded in the
previous quarter, and higher than the 46% recorded during the same period a
year ago. The Company's top five clients accounted for approximately 66% of
the quarterly revenue with 20% of the revenue derived from clients in the
United States. The company finished the quarter with cash and cash equivalents
of $8.15 million compared to $5.21 million at September 30, 2005.
As previously announced, the Company has successfully negotiated a
termination agreement for its current leased facility in Toronto. This
termination resulted in a reduction to its long-term commitments of
approximately $13.5 million. As a result of the termination agreement,
Cyberplex will move to a new location in December 2006 and has agreed to pay
the landlord a one-time charge of $1.27 million. The Company does not expect
this one-time charge to have any impact on its profit and loss statement as a
provision for the leased facility had been accounted for in the past.
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.
This news release may contain certain forward-looking statements that
reflect the current views and/or expectations of Cyberplex Inc. with respect
to its performance, business and future events. Such statements are subject to
a number of risks, uncertainties and assumptions. Actual results and events
may vary significantly.
<<
CYBERPLEX INC.
CONSOLIDATED BALANCE SHEETS
as at as at
September 30, December 31,
2006 2005
------------- -------------
(unaudited) (unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 615,189 $ 449,786
Short-term investments 7,534,868 4,834,644
Accounts receivable, net of allowance for
doubtful accounts of $134,638
(December 31, 2005 - $92,575) 854,085 1,461,381
Prepaid expenses and sundry assets 327,990 160,587
------------- -------------
9,332,132 6,906,398
Capital assets 1,316,575 1,478,489
Goodwill 657,226 -
Intangible assets, net 190,298 -
------------- -------------
TOTAL ASSETS $ 11,496,231 $ 8,384,887
------------- -------------
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 812,600 $ 1,007,646
Current portion of obligations under
building leases 1,452,131 241,595
Unearned revenue 94,208 8,967
Note payable - short term 150,000 -
------------- -------------
2,508,939 1,258,208
Future income taxes 39,000 39,000
Other long-term liabilities 94,065 1,292,798
------------- -------------
133,065 1,331,798
SHAREHOLDERS' EQUITY
Capital stock 8,749,228 70,334,560
Contributed surplus 333,334 307,067
Deficit (228,335) (64,846,746)
------------- -------------
8,854,227 5,794,881
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 11,496,231 $ 8,384,887
------------- -------------
------------- -------------
CYBERPLEX INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
Three Month Period Ended Nine Month Period Ended
--------------------------- ---------------------------
September 30, September 30, September 30, September 30,
2006 2005 2006 2005
(unaudited) (unaudited) (unaudited) (unaudited)
------------- ------------- ------------- -------------
Revenue $ 1,240,947 $ 1,513,747 $ 3,751,135 $ 5,853,226
Cost of sales 608,960 823,230 1,937,808 3,190,781
------------- ------------- ------------- -------------
Gross profit 631,987 690,517 1,813,327 2,662,445
Sales and
marketing
expenses 230,908 139,904 596,075 482,768
General and
administrative
expenses 515,484 885,669 1,517,055 2,161,052
Amortization of
capital assets
& intangibles
assets 108,513 69,081 251,337 214,119
------------- ------------- ------------- -------------
854,905 1,094,654 2,364,467 2,857,939
- -
Income(loss) from
operations (222,918) (404,137) (551,140) (195,494)
------------- ------------- ------------- -------------
Interest income 76,341 30,238 172,320 87,168
------------- ------------- ------------- -------------
Income(loss) before
income taxes (146,577) (373,899) (378,820) (108,326)
------------- ------------- ------------- -------------
Net income $ (146,577) $ (373,899) $ (378,820) $ (108,326)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Deficit -
beginning of the
period (81,758) (63,449,917) (64,846,746) (63,715,490)
Reduction in
stated - - 64,997,231 -
------------- ------------- ------------- -------------
Deficit - end of
period $ (228,335) $(63,823,816) $ (228,335) $(63,823,816)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Weighted average
number of common
shares - basic 41,682,251 32,425,858 35,622,774 32,335,672
Weighted average
number of common
shares - diluted 41,682,251 32,425,858 35,622,774 32,335,672
Basic earnings
(loss) per share $ (0.00) $ (0.01) $ (0.01) $ (0.00)
Diluted earnings
(loss) per share $ (0.00) $ (0.01) $ (0.01) $ (0.00)
>>
%SEDAR: 00005639E
