ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com
online resource and business for engineers today announced its financial results
for the first quarter of 2009.
ENGINEERING.com revenue was $250,926 for the three months ended March 31, 2009,
compared to revenue of $387,754 for the first quarter of 2008. The net loss for
the three months ended March 31, 2009, totaled ($194,708) and ($0.01) per Common
Share compared with a net loss of ($105,358) and ($0.00) for the same period a
year ago. The decrease in revenue is attributed primarily to the termination of
an outsourcing agreement with a former related party. The decline in revenue was
mitigated by an increase in the Company's Internet advertising revenue, which
rose by 82% as compared to the same period a year ago.
Operating losses measured as earnings before interest, taxes, amortization and
stock-based compensation, was ($133,975) or $0.00 per Common Share for the first
quarter of 2009 compared with an operating loss of ($40,174) or ($0.00) per
Common Share for the three months ended March 31, 2008. The operating expenses
in the latest period were $302,423, down from $305,575 in the first quarter a
year earlier. The reduction in operating expense resulted from lower salaries
and administrative expenses.
"During the first quarter of 2009 we saw growth at our primary web site of more
than 2.5 times last year's first quarter traffic," said John Hayes, President of
ENGINEERING.com. "We plan to introduce more online services in 2009 to build
site traffic and related advertising revenue."
As at March 31, 2009, the Company had a cash balance of $440,473 compared to a
cash balance of $274,800 as at March 31, 2008.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (TSX VENTURE:EGN) is the developer-owner of the
www.ENGINEERING.com Web site and Internet-based software and business.
ENGINEERING.com offers hosted and deployed engineering software and services to
manufacturers, design consultants and engineering academia around the world. The
ENGINEERING.com Incorporated head office is located in Mississauga, Ontario,
Canada and can be reached toll-free at 1-877-997-9917, by facsimile at
905-273-6691 or through the Internet at www.ENGINEERING.com.
EBITDA
Operating Income (EBITDA) is defined by the Company as operating income before
interest expense, income taxes, amortization stock-based compensation, asset
dispositions and provision for discontinued operations. The Company has included
information concerning EBITDA because it believes that EBITDA is used by certain
investors as one measure of the Company's financial performance. EBITDA is not a
measure of financial performance under Canadian generally accepted accounting
principles and is not necessarily comparable to similarly titled measures used
by other companies. EBITDA should not be construed as an alternative to net
income or to cash flows from operating activities (as determined in accordance
with Canadian generally accepted accounting principles) as a measure of
liquidity.
Forward Looking Statements
This press release may contain forward-looking statements based on management's
current projections, beliefs and opinions at the date of this press release.
Actual results could differ materially from those anticipated in these
statements. ENGINEERING.com Incorporated undertakes no responsibility to update
forward-looking statements if circumstances or management's projections, beliefs
or opinions change.
The contents of this News Release have been reviewed and approved by the Audit
Committee and the Board of Directors.
ENGINEERING.com
Balance Sheet
As at March 31, 2008
Unaudited Audited
March 31, 2009 December 31, 2008
ASSETS
Current Assets
--------------
Cash 440,473 311,988
Accounts Receivable 186,288 189,109
Prepaid Expenses and Deposits 38,867 29,707
--------------- -----------------
Total Current Assets 665,628 530,804
--------------- -----------------
Capital Assets, net 28,408 29,865
Intangible Assets, net 546,894 591,528
--------------- -----------------
TOTAL ASSETS 1,240,930 1,152,197
--------------- -----------------
--------------- -----------------
LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
-------------------
Accounts Payable & Accrued Liabilities 660,592 787,594
Deferred Income 137,394 84,247
Promissory notes - short-term 60,566 58,464
--------------- -----------------
Total current liabilities 858,552 930,305
--------------- -----------------
Promissory notes - long-term 14,872 28,971
--------------- -----------------
TOTAL LIABILITIES 873,424 959,276
--------------- -----------------
--------------- -----------------
SHAREHOLDERS EQUITY
Share Capital 15,116,714 14,759,008
Contributed Surplus 403,998 392,411
Deficit (15,153,206) (14,958,498)
--------------- -----------------
TOTAL SHAREHOLDERS EQUITY 367,506 192,921
--------------- -----------------
--------------- -----------------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,240,930 1,152,197
--------------- -----------------
--------------- -----------------
ENGINEERING.com
Statements of Income
(Unaudited) Three months Three months
ended ended
March 31, 2009 March 31, 2008
REVENUE 250,926 387,754
COST OF SALES 82,478 122,353
--------------- ---------------
GROSS PROFIT 168,448 265,401
GROSS PROFIT % 67.1% 68.4%
EXPENSES (INCOME)
Salaries & benefits 145,284 151,079
Marketing expenses 22,079 5,374
Development costs 66,697 55,235
General & Administrative 68,363 93,887
--------------- ---------------
302,423 305,575
--------------- ---------------
Operating Income (Loss) (EBITDA) before
under noted items: (133,975) (40,174)
Stock based compensation (11,587) (16,847)
Amortization Expense (49,146) (48,337)
--------------- ---------------
(60,733) (65,184)
--------------- ---------------
--------------- ---------------
NET LOSS (194,708) (105,358)
--------------- ---------------
--------------- ---------------
BASIC AND DILUTED LOSS PER SHARE (0.01) (0.00)
Weighted Average Number of Common Shares
(basic and diluted) 31,872,606 29,496,499
Consolidated Statements of Deficit
--------------- ---------------
DEFICIT, beginning of period (14,958,498) (14,438,245)
--------------- ---------------
Net Loss (194,708) (105,358)
DEFICIT, end of period (15,153,206) (14,543,603)
--------------- ---------------
--------------- ---------------
ENGINEERING.com Inc.
Cash Flow Statements
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 2009 March 31,2008
OPERATING ACTIVITIES
Net loss (194,708) (105,358)
ADD - Items not affecting cash
Stock based compensation 11,587 16,847
Amortization 49,146 48,337
Changes in operating assets and liabilities
other than cash (80,194) 38,807
--------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES (214,169) (1,367)
--------------- --------------
FINANCING ACTIVITIES
Promissory notes (11,997) (6,119)
Proceeds from share issuance 357,706 --
--------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES 345,706 (6,119)
--------------- --------------
INVESTING ACTIVITIES
Fixed assets (3,055) (6,630)
--------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES (3,055) (6,630)
--------------- --------------
Net increase (decrease) in cash 128,485 (14,116)
CASH, beginning of period 311,988 288,916
--------------- --------------
CASH, end of period 440,473 274,800
--------------- --------------
--------------- --------------
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