TORONTO, Aug. 9 /CNW/ - Cyberplex Inc. (TSX:CX) a leader in building and promoting on-line business solutions, today announced its financial results for the second quarter ended June 30, 2007.
Revenue for the three month period ended June 30, 2007 was $4.44 million up 243% from the $1.29 million generated a year earlier and an increase of 46% from the $3.04 million recognized in the previous quarter. During the quarter, the Company invested heavily in its sales and marketing initiatives which helped generate the revenue growth and set the foundation for future performance. On an operational basis, the loss before amortization and interest income for the quarter was $4,000 compared to a $54,000 operating loss for the same period a year earlier and a loss of $153,000 generated in the previous quarter. Included in this figure for the quarter was a foreign exchange loss of $130,000, a one time non-recurring charge of $41,000, and stock-based compensation expense of $30,000.
Gross margin for the quarter was 42%, up from the 36% recorded in the previous quarter, primarily resulting from the improved margins realized from our advertising division. The Company's top five clients accounted for approximately 34% of the quarterly revenue with 78% of the revenue derived from clients in the United States. The company finished the quarter with cash and cash equivalents of $2.02 million compared to $3.12 million at March 31, 2007.
"We are very pleased with our performance this quarter and the overall growth for 2007," said Geoffrey Rotstein, chief executive officer of Cyberplex. "Our strategy of building a recurring revenue model is unfolding successfully and our increased investments in sales and marketing are helping fuel our growth to establish a critical mass across the organization."
Operational Results:
Revenue from on-line advertising grew significantly on sequential basis and year over year. For the three month period ended June 30, 2007, revenue from on-line advertising increased to $3.39 million, compared to the $2.04 million recorded in the previous quarter, an increase of $1.35 million. Gross margin for the period was 41%, an increase from the 35% realized in the previous quarter. Revenue from technology services of $1.05 million was up from the $1.00 million recorded during the previous quarter. Gross margin for the quarter also increased to 43%, up from 40% in the previous quarter.
About Cyberplex
Cyberplex Inc. (www.cyberplex.com) is a technology firm focused on providing technology and web based solutions to its clients. The Company's specialized team of technology, design, usability and solution specialists assist clients with all aspects of their web based applications as they design, develop and promote solutions that improve business. With over 12 years of experience serving Fortune 1000 clients including Thomson, Atlantic Lottery Corporation, Xerox, Advanced Micro Devices (AMD), 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.
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
June 30, December 31,
2007 2006
------------- -------------
(unaudited) (unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 600,190 $ 610,337
Short-term investments 1,421,130 2,825,068
Accounts receivable, net of allowance
for doubtful accounts of $288,978
(December 31, 2006 $272,665) 2,917,110 1,340,884
Prepaid expenses and sundry assets 144,680 500,254
------------- -------------
5,083,110 5,276,543
Capital assets 914,255 841,271
Goodwill 4,692,870 3,851,507
Intangible assets 295,248 490,469
------------- -------------
TOTAL ASSETS $ 10,985,483 $ 10,459,790
------------- -------------
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 2,466,350 $ 1,717,341
Deferred lease inducement 19,429 45,383
Note payable 96,783 143,566
Future income taxes 106,675 137,347
Unearned revenue 49,329 36,742
------------- -------------
2,738,566 2,080,379
Future income taxes - 39,842
Deferred Lease inducements 282,943 198,484
------------- -------------
282,943 238,326
SHAREHOLDERS' EQUITY
Capital stock 9,012,180 8,918,941
Contributed surplus 411,967 361,174
Accumulated other comprehensive income 46,417 -
Deficit (1,506,588) (1,139,029)
------------- -------------
7,963,975 8,141,087
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 10,985,483 $ 10,459,790
------------- -------------
------------- -------------
CYBERPLEX INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
Three Month Period Ended Six Month Period Ended
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited) (unaudited)
------------ ------------ ------------ ------------
Revenue $ 4,435,563 $ 1,293,075 $ 7,474,479 $ 2,510,188
Cost of sales 2,591,266 649,110 4,530,582 1,328,848
------------ ------------ ------------ ------------
Gross Profit 1,844,297 643,965 2,943,897 1,181,340
Expenses
Sales and marketing
expenses 986,742 181,863 1,476,799 365,167
General and
administrative
expenses 861,059 516,176 1,623,857 1,001,571
------------ ------------ ------------ ------------
1,847,801 698,039 3,100,658 1,366,738
Loss before the
undernoted (3,504) (54,074) (156,761) (185,398)
Amortization of
capital assets 61,151 67,525 116,275 142,824
Amortization of
Intangible assets 97,611 10,000 195,222 -
------------ ------------ ------------ ------------
Loss from operations (162,266) (131,599) (468,258) (328,222)
Interest income 15,478 49,841 41,893 95,979
Loss before income taxes (146,788) (81,758) (426,365) (232,243)
Income tax recovery
Current - - - -
Future 35,257 - 70,514 -
------------ ------------ ------------ ------------
Net income (loss) $ (111,531) $ (81,758) $ (355,851) $ (232,243)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Other comprehensive
Income (loss)
Unrealized gain
on marketable
securities (13,923) - 2,216 -
------------ ------------ ------------ ------------
Total comprehensive
income (125,454) (81,758) (353,635) (232,243)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Deficit - beginning
of the period (1,367,211) (64,997,231) (1,139,030) (64,846,746)
Reduction in stated
capital 64,997,231 64,997,231
Deficit - end of
period $(1,492,665) $ (81,758) $(1,492,665) $ (81,758)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Weighted average
number of common
shares - basic 42,130,545 32,648,219 42,107,595 32,542,820
Weighted average
number of common
shares - diluted 42,130,545 32,648,219 42,107,595 32,542,820
Basic earnings (loss)
per share $ (0.00) $ (0.00) $ (0.01) $ (0.01)
Diluted earnings
(loss) per share $ (0.00) $ (0.00) $ (0.01) $ (0.01)