ITNovaScotia.com - Where IT's at in Nova Scotia > News - Cyberplex Announces Fourth Quarter and Year-End Financial Results for 2006

Location: Blogs News
Posted by: ITNovaScotia Admin	Tuesday, March 27, 2007
TORONTO, March 22 /CNW/ - Cyberplex Inc. (TSX : CX), announced its financial results for the fourth quarter and the fiscal year ended December 31, 2006. Business highlights for 2006: << - Acquisition of WebAffairs Inc. which enabled the Company to service small and medium sized organizations with leading creative technologies and proprietary solutions - Secured a private placement of $3.25 million which further strengthened the Company's balance sheet - Elimination of a $13.5 million lease obligation by negotiating a termination agreement for the leased facility in Toronto - Acquisition of Incentaclick Media Group Inc. which diversified the Company's business model into on-line advertising, creating a different and more scaleable revenue model leveraging one of the largest growth areas of the Internet >> Fourth quarter revenue of $1.58 million was an increase of 27% over the $1.24 million generated in the previous quarter and an increase of 14% over the $1.39 million recorded during the same period a year ago. The revenue increase is attributed to consistent revenue performance from the technology services division and the incremental revenue relating to acquisition of Incentaclick, completed at the beginning of December. The loss before amortization and interest income for the fourth quarter was $163,000, higher than the loss of $114,000 realized in the previous quarter and a significant improvement over the $647,000 in losses generated during the same period a year earlier. Gross margin for the quarter was 40%, down from 51% generated in the previous quarter. The significant change in gross margin resulted from the inclusion of Incentaclick, as the margin from the services business was relatively consistent at 47%. The largest five accounts in the quarter accounted for approximately 61% of revenue and 32% of the Company's revenue was generated from clients located in the United States. Revenue for the year ended December 31, 2006 was $5.33 million, down 26% from the $7.24 million recorded during 2005. The loss before amortization and interest income was $463,000 compared with a loss of $628,000 generated a year earlier. The net loss for the year, after accounting for an additional $784,000 of accelerated amortization due to the relocation of our Toronto offices, was $1.39 million, or $0.03 per share. "2006 was an important year for Cyberplex as we continued to transition the organization," said Geoffrey Rotstein, President and CEO of Cyberplex. "By completing two very strategic acquisitions, raising $3.25 million in capital and reducing our long term commitments by over $13.5 million, we have positioned ourselves very well for 2007. Our balance sheet remains strong, with over $3.4 million in cash and no debt, and our focus continues to be on growing the business profitably. Management is committed to building a stronger company, both through organic growth and selected acquisitions that will deliver value to its shareholders." About Cyberplex Cyberplex Inc. (www.cyberplex.com) is a technology firm focused on providing application expertise and web based solutions to its clients. The Company's specialized team of technology consultants and 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 11 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 Arlington, Austin and Halifax. << CYBERPLEX INC. CONSOLIDATED BALANCE SHEETS as at as at December 31, December 31, 2006 2005 ------------- ------------- (unaudited) (unaudited) ASSETS Current Assets: Cash, cash equivalents, and short term investments $ 3,435,405 $ 5,284,430 Accounts receivable, net of allowance for doubtful accounts of $272,665 (December 31, 2005 - $92,575) 1,340,884 1,461,381 Prepaid expenses and sundry assets 500,254 160,587 ------------- ------------- 5,276,543 6,906,398 Capital assets 841,271 1,478,489 Intangible assets 490,469 - Goodwill 3,851,507 - ------------- ------------- TOTAL ASSETS $ 10,459,790 $ 8,384,887 ------------- ------------- ------------- ------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued liabilities $ 1,717,339 $ 1,249,241 Short term note payable 143,566 - Unearned revenue 36,742 8,967 Future income taxes 137,347 - Deferred lease inducements 45,383 - ------------- ------------- 2,080,377 1,258,208 Future income taxes 39,842 39,000 Deferred lease inducements 198,484 - Other long-term liabilities - 1,292,798 ------------- ------------- 238,326 1,331,798 SHAREHOLDERS' EQUITY 8,141,087 5,794,881 ------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 10,459,790 $ 8,384,887 ------------- ------------- ------------- ------------- CYBERPLEX INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT Three Month Period Ended Twelve Month Period Ended --------------------------- --------------------------- December 31, December 31, December 31, December 31, 2006 2005 2006 2005 (unaudited) (unaudited) (unaudited) (unaudited) ------------- ------------- ------------- ------------- Revenue $ 1,582,086 $ 1,388,719 $ 5,333,221 $ 7,241,945 Cost of sales 941,725 811,586 2,879,533 4,002,367 ------------- ------------- ------------- ------------- Gross profit 640,361 577,133 2,453,688 3,239,578 Sales and marketing expenses 279,287 158,868 875,362 736,089 General and administrative expenses 524,126 1,065,018 2,041,180 3,131,616 ------------- ------------- ------------- ------------- 803,413 1,223,886 2,916,542 3,867,705 Loss before interest, amortizations and other items (163,053) (646,753) (462,854) (628,127) Interest income (71,303) (45,056) (244,498) (136,047) Interest expense 3,425 17 4,300 3,840 Amortization of capital assets 853,636 95,100 1,054,613 309,219 Amortization of intangible assets 59,277 - 109,637 - Goodwill impairment - 449,136 - 449,136 ------------- ------------- ------------- ------------- Loss before income taxes (1,008,088) (1,145,950) (1,386,906) (1,254,275) Income Taxes (recovery) Current (20,618) - (20,618) - Future (76,775) (123,019) (76,775) (123,019) ------------- ------------- ------------- ------------- Net loss $ (910,695) $ (1,022,931) $ (1,289,513) $ (1,131,256) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Deficit - beginning of the period (228,335) (63,823,816) (64,846,746) (63,715,490) Deficit reduction - - 64,997,231 - ------------- ------------- ------------- ------------- Deficit - end of period $ (1,139,029) $(64,846,746) $ (1,139,029) $(64,846,746) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Weighted average number of common shares - basic 41,816,260 32,436,249 37,183,511 32,361,023 Weighted average number of common shares - diluted 41,816,260 32,436,249 37,183,511 32,361,023 Basic earnings (loss) per share $ (0.02) $ (0.03) $ (0.03) $ (0.03) Diluted earnings (loss) per share $ (0.02) $ (0.03) $ (0.03) $ (0.03) >> For further information: investor@cyberplex.com

Permalink \| Trackback

Comments (2)

Re: Cyberplex Announces Fourth Quarter and Year-End Financial Results for 2006	By Tom R. on Tuesday, April 17, 2007
These guys seem to buy at least one other small company a year - didn't they buy a company in new brunswick a couple years back?

Re: Cyberplex Announces Fourth Quarter and Year-End Financial Results for 2006	By John Walters on Tuesday, April 17, 2007
Yes, they purchased CyberSecure in 2004. That company was based out of New Brunswick's technology incubator in Fredericton, which is similar to the Nova Scotia one in Dartmouth. They don't list a New Brunswick office in those financials, so perhaps they moved the staff to Halifax or Toronto.