Revenue More Than Doubles Year-Over-Year
TORONTO, Aug. 7 /CNW/ - Cyberplex Inc. (TSX: CX) a leader in web
advertising solutions, online customer acquisition strategies and technology
development, today announced record second-quarter results and its 7th
consecutive quarter of revenue growth. Cyberplex's total consolidated revenue
for the second quarter of 2008 was $9.5 million, an increase of 114% over the
$4.4 million reported for second quarter of 2007.
Financial Highlights
--------------------
- CX Digital Media, Cyberplex's online advertising division, increased
revenue by 151% to $8.5 million, when compared to the previous year.
- Earnings before amortization, interest and other items increased to
over $350,000, an increase of 58% from $221,000 last quarter.
- Net income grew to $206,522, an increase of 300% from the previous
quarter.
- Sequential quarterly revenue growth of over 20%.
- Secured an operating line of credit of $5.0 million from the Royal
Bank of Canada.
"Cyberplex delivered another outstanding quarter," said Geoffrey
Rotstein, President and CEO, Cyberplex Inc. "The second quarter demonstrated
the strategic value of our performance-based marketing solutions and our
team's ability to deliver in very difficult market conditions. Notwithstanding
the macro-economic cross-currents, our business pipeline remains healthy, and
we are confident in our ability to execute. In addition, by securing the
$5.0 million operating line, we believe we have more than sufficient capital
to fund our business plan for the foreseeable future."
Second Quarter Highlights
-------------------------
- Canadian Business Magazine ranked Cyberplex Inc. as one of the Top
100 Technology Companies in Canada.
- CDN Magazine ranked Cyberplex Inc. as one of Canada's Top 100
Solution Providers.
- Branham Group ranked Cyberplex Inc. as the 3rd top Mover and Shaker
in Canada, and also the 6th fastest growth company in Canada.
- Average revenue per customer grew by over 5% quarter over quarter.
"Looking ahead, we see many growth opportunities for Cyberplex as we
continue to aggressively strengthen our online advertising division - CX
Digital Media, grow into new and adjacent markets and expand our presence
around the globe," Rotstein added. "The power of our performance-based
marketing solution positions us well to extend our leadership and continue
gaining market share."
Operational Results:
--------------------
For the quarter ended June 30, 2008, the Company generated revenue of
$9.5 million, an increase of $5.1 million or 114% when compared to the
$4.4 million generated in the second quarter of 2007. This increase resulted
directly from our online advertising division, which generated $8.5 million in
revenue resulting in a year-over-year revenue growth of 151% combined with
revenue from our technology services division of approximately $1.0 million.
Gross profit for the quarter ended June 30, 2008 was $3.2 million
resulting in a gross margin of 34% compared to $2.6 million or 32% gross
margin last quarter. This increase resulted from the Company executing on
strategic revenue models during the quarter and executing new initiatives to
build and strengthen its network. Earnings before amortization, interest and
other items was over $350,000, an increase of 58% over last quarter. As the
Company continues to bolster its advertising division and develop its unique
offers and proprietary technologies, we expect our trend of revenue growth and
greater operating leverage to continue.
Conference Call Details:
------------------------
In conjunction with this announcement, Cyberplex will host a conference
call Thursday, August 7, 2008 at 4:30pm EST to discuss the results and the
financial performance. To access the call, please dial 888-892-3255. Please
call five minutes prior to the call.
A replay of the conference call will be available as of 12:00pm EST the
same day, until midnight August 16, 2008. To access the replay dial
1-800-937-6305 followed by the passcode 281442.
About Cyberplex
---------------
Cyberplex Inc. (www.cyberplex.com) is a leader in providing web
advertising solutions, online customer acquisition strategies and technology
development. The Company, through its subsidiaries, has developed a
proprietary affiliate network which combined with advertising relationships
and teams of technology consultants and design, usability and solutions
specialists, assist customers with all aspects of their web-based programs as
they design, develop and promote solutions that deliver results.
With over 14 years of experience serving Fortune 1000 clients including
FTD, Xerox, Sony Canada, IAC, Atlantic Lottery Corporation, Vista Print,
Aecon, Ontario Power Generation, Scotia Bank 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 San Diego 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,
2008 2007
------------- -------------
(unaudited) (unaudited)
ASSETS
Current Assets:
Cash, cash equivalents and short-term
investments $ 1,932,775 $ 473,177
Accounts receivable, net of allowance for
doubtful accounts of $827,954 (2007 -
752,015) 4,683,094 4,264,373
Prepaid expenses and other assets 640,284 338,024
------------- -------------
7,256,153 5,075,574
Capital assets 1,000,406 1,019,496
Goodwill 8,637,015 5,959,615
Intangible assets 31,256 187,157
------------- -------------
$ 16,924,830 $ 12,241,842
------------- -------------
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Bank indebtedness $ - $ 678,967
Accounts payable and accrued liabilities 3,190,188 3,185,545
Deferred lease inducements 25,791 51,582
Unearned revenue 72,756 149,535
------------- -------------
3,288,735 4,065,629
Deferred lease inducements 216,097 216,097
------------- -------------
216,097 216,097
Shareholders' equity 13,419,998 7,960,116
------------- -------------
$ 16,924,830 $ 12,241,842
------------- -------------
------------- -------------
CYBERPLEX INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
------------- ------------- ------------- -------------
Revenue $ 9,471,604 $ 4,435,563 $ 17,368,484 $ 7,474,479
Cost of revenue 6,255,891 2,591,266 11,592,837 4,530,582
------------- ------------- ------------- -------------
3,215,713 1,844,297 5,775,647 2,943,897
Sales and
marketing 1,835,838 986,742 3,329,153 1,476,799
General and
administrative 999,972 731,324 1,919,775 1,481,628
Foreign exchange
(gain) loss 29,775 129,735 (44,588) 142,231
------------- ------------- ------------- -------------
2,865,585 1,847,801 5,204,340 3,100,658
Income (loss)
before undernoted
items 350,128 (3,504) 571,307 (156,761)
Amortization of
capital assets 74,833 61,151 149,030 116,275
Amortization of
intangible assets 69,571 97,611 155,901 195,222
Income (loss) from
operations 205,724 (162,266) 266,376 (468,258)
Interest expense (11,439) - (32,818) -
Interest income 12,237 15,478 24,821 41,893
Income (loss)
before income
taxes 206,522 (146,788) 258,379 (426,365)
Income tax
recovery:
Future - (35,257) - (70,514)
------------- ------------- ------------- -------------
Income (loss) 206,522 (111,531) 258,379 (355,851)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Other comprehensive
income (loss)
Unrealized gain on
marketable securities - (13,923) - 2,216
------------- ------------- ------------- -------------
Income (loss) and
other comprehensive
income (loss) $206,522 $(125,454) $258,379 $(353,635)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Basic and diluted
earnings (loss)
per share $0.00 $(0.00) $0.01 $(0.01)
Weighted average
number of common
shares used in:
Basic 52,286,535 42,130,545 49,703,691 42,107,595
Diluted 53,399,226 42,130,545 50,807,817 42,107,595
