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Cyberplex Revenue Increases 150 Percent Year-over-Year
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Location: Blogs News |
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| Posted by: ITNovaScotia Admin |
Tuesday, May 15, 2007 |
TORONTO, May 14 /CNW/ - Cyberplex Inc. (TSX:CX) a leader in building and
promoting on-line business solutions, today announced its financial results
for the first quarter ended March 31, 2007.
Revenue for the three month period ended March 31, 2007 was $3.04 million
up 150% from the $1.22 million generated a year earlier and an increase of 92%
from the $1.58 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 $153,000 compared to a $131,000 operating
loss for the same period a year earlier and a loss of $163,000 generated in
the previous quarter. Included in the 2007 figure, is a one time non-recurring
charge of $100,000 and stock based compensation expense of $20,000.
Gross margin for the quarter was 36%, down from the 40% recorded in the
previous quarter, as a result of the significant growth of our advertising
division, which has traditionally operated with lower gross margins. The
Company's top five clients accounted for approximately 37% of the quarterly
revenue with 70% of the revenue derived from clients in the United States. The
company finished the quarter with cash and cash equivalents of $3.12 million
compared to $5.41 million at March 31, 2006.
"We are very pleased with the revenue growth from the first quarter,"
said Geoffrey Rotstein, chief executive officer of Cyberplex. "Our investment
in sales and marketing to drive growth was successful and as we reach a
critical mass in revenue we expect to be profitable at an enterprise level."
Operational Results:
Revenue from our advertising division grew significantly. For the three
month period ended March 31, 2007, revenue from on-line advertising increased
to $2.04 million, compared to the $362,000 recorded in the previous quarter
(only one month of revenue was recorded in the fourth quarter as the
acquisition was completed on November 30, 2006). Gross margin for the period
was 35%, a significant increase from the 18% realized in the previous quarter.
Revenue from our services business of $1.00 million was down from the
$1.22 million recorded during the previous quarter and as a result, the gross
margin also decreased to 40%.
Cyberplex's unique ability to offer clients a full suite of solutions to
be successful on-line, from software development to customer acquisition and
promotion, has positioned it well in the marketplace. With the integration our
acquisitions now completed, a solid foundation has been set for 2007.
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, 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
March 31, December 31,
2007 2006
-------------- --------------
(unaudited) (unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 708,688 $ 610,337
Short-term investments 2,409,185 2,825,068
Accounts receivable, net of allowance
for doubtful accounts of $292,719
(December 31, 2006 $272,665) 1,839,840 1,340,884
Prepaid expenses and sundry assets 288,840 500,253
-------------- --------------
5,246,552 5,276,542
Capital assets 842,660 841,271
Goodwill 4,179,106 3,851,506
Intangible assets 392,859 490,469
-------------- --------------
TOTAL ASSETS $ 10,661,177 $ 10,459,787
-------------- --------------
-------------- --------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued
liabilities $ 2,124,175 $ 1,717,338
Deferred lease inducement 32,406 45,383
Note payable 145,175 143,566
Future income taxes 137,347 137,347
Unearned revenue 42,236 36,742
-------------- --------------
2,481,339 2,080,376
Future income taxes 4,585 39,842
Deferred Lease inducements 198,484 198,484
-------------- --------------
203,069 238,326
SHAREHOLDERS' EQUITY
Capital stock 8,918,942 8,918,942
Contributed surplus 380,839 361,174
Accumulated other comprehensive income 60,340 -
Deficit (1,383,351) (1,139,029)
-------------- --------------
7,976,770 8,141,087
-------------- --------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 10,661,177 $ 10,459,787
-------------- --------------
-------------- --------------
CYBERPLEX INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
Three Month Period Ended
-------------------------------
March 31, 2007 March 31, 2006
(unaudited) (unaudited)
-------------- --------------
Revenue $ 3,038,916 $ 1,217,113
Cost of sales 1,939,316 679,738
-------------- --------------
Gross profit 1,099,600 537,375
Expenses
Sales and marketing expenses 490,057 183,304
General and administrative expenses 762,799 485,395
-------------- --------------
1,252,857 668,699
Loss before the undernoted (153,257) (131,324)
Amortization of capital assets 55,124 65,299
Amortization of intangible assets 97,611 -
-------------- --------------
Loss from operations (305,992) (196,623)
Interest income 26,415 46,138
Loss before income taxes (279,577) (150,485)
Income tax recovery
Current - -
Future 35,257 -
-------------- --------------
Net income (loss) $ (244,320) $ (150,485)
-------------- --------------
-------------- --------------
Other comprehensive Income (loss)
Unrealized gain on marketable securities 16,139 -
-------------- --------------
Total comprehensive income (228,181) (150,485)
-------------- --------------
-------------- --------------
Deficit - beginning of the period (1,139,030) (64,846,746)
Deficit - end of period $ (1,367,211) $ (64,997,231)
-------------- --------------
-------------- --------------
Weighted average number of common
shares - basic 42,024,392 32,436,250
Weighted average number of common
shares - diluted 42,024,392 32,436,250
Basic earnings (loss) per share $ (0.01) $ (0.00)
Diluted earnings (loss) per share $ (0.01) $ (0.00)
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