ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the
ENGINEERING.com online resource and business for engineers today
announced its financial results for the second quarter of 2010.
ENGINEERING.com revenue was $412,667 for the three months ended
June 30, 2010, compared to revenue of $329,396 for the second
quarter of 2009. The increase in overall revenue is the result of
revenue growth in the Internet advertising business. The net loss
for the three months ended June 30, 2010, totaled ($112,767) and
($0.00) per Common Share compared with a net loss of ($145,478) and
($0.00) for the same period a year ago.
Operating losses (EBITDA) measured as earnings before interest,
taxes, amortization and stock-based compensation, was ($58,402) or
$0.00 per Common Share for the second quarter of 2010 compared with
an operating loss of ($87,257) or ($0.00) per Common Share for the
three months ended June 30, 2009. The operating expenses in the
latest period were $285,875, down from $308,594 in the second
quarter a year earlier.
"During the second quarter our Internet advertising revenue grew
by 88% compared to the same period last year. Unfortunately,
software revenues and gross profit margins were under pressure
during that time," said John Hayes, President of ENGINEERING.com.
"We also experienced increasing numbers of visitors, pages viewed
and member registrations."
As at June 30, 2010, the Company had a cash balance of $197,445
compared to a cash balance of $383,412 as at June 30, 2009.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (TSX VENTURE: EGN) is the
developer-owner of the www.ENGINEERING.com Web site and
Internet-based business. ENGINEERING.com offers engineering content
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
Unaudited Audited
June 30, December 31,
2010 2009
ASSETS
Current Assets
Cash 197,445 106,118
Accounts Receivable 277,311 291,761
Prepaid Expenses and Deposits 24,707 30,391
------------ ------------
Total Current Assets 499,463 428,270
------------ ------------
Capital Assets, net 23,429 27,916
Intangible Assets, net 328,346 412,993
------------ ------------
TOTAL ASSETS 851,238 869,179
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Accounts Payable & Accrued Liabilities 913,445 707,147
Deferred Income 64,161 46,614
Promissory notes - short-term 4,031 24,999
------------ ------------
TOTAL LIABILITIES 981,637 778,760
------------ ------------
------------ ------------
SHAREHOLDERS EQUITY
Share Capital 15,113,752 15,113,752
Contributed Surplus 430,439 417,959
Deficit (15,674,590) (15,441,292)
------------ ------------
TOTAL SHAREHOLDERS EQUITY (130,399) 90,419
------------ ------------
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 851,238 869,179
------------ ------------
------------ ------------
Engineering.Com
Statements of Operations and Deficit
Three Three
(Unaudited) months months
ended ended
June 30, June 30,
2010 2009
REVENUE 412,667 329,396
COST OF SALES 185,194 108,059
----------- -----------
GROSS PROFIT 227,473 221,337
GROSS PROFIT % 55.1% 67.2%
EXPENSES (INCOME)
Salaries & benefits 145,179 133,931
Marketing expenses 28,702 22,579
Development costs 56,154 67,166
General & Administrative 55,840 84,918
----------- -----------
285,875 308,594
----------- -----------
Operating Income (Loss) (EBITDA) before under
noted items: (58,402) (87,257)
Stock based compensation (6,239) (9,061)
Amortization Expense (48,126) (49,160)
----------- -----------
(54,365) (58,221)
----------- -----------
----------- -----------
NET LOSS (112,767) (145,478)
----------- -----------
----------- -----------
BASIC AND DILUTED LOSS PER SHARE (0.00) (0.00)
Weighted Average Number of Common Shares (basic
and diluted) 36,870,623 36,870,623
Consolidated Statements of Deficit
----------- -----------
DEFICIT, beginning of period (15,561,823) (15,153,206)
----------- -----------
Net Loss (112,767) (145,478)
DEFICIT, end of period (15,674,590) (15,298,684)
----------- -----------
----------- -----------
Engineering.Com Inc.
Cash Flow Statements
(Unaudited)
Three Three
Months Months
Ended Ended
June 30, June 30,
2010 2009
OPERATING ACTIVITIES
Net Loss (112,767) (145,478)
ADD - Items not affecting cash
Stock based compensation 6,239 9,061
Amortization 48,126 49,160
Changes in operating assets and liabilities other
than cash 122,906 56,292
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES 64,504 (30,965)
--------- ---------
FINANCING ACTIVITIES
Promissory notes (12,004) (19,863)
Proceeds of share issuance -- (2,962)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES (12,004) (22,825)
--------- ---------
INVESTING ACTIVITIES
Fixed Assets (3,076) (3,271)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES (3,076) (3,271)
--------- ---------
Net increase (decrease) in cash 49,424 (57,061)
CASH, beginning of period 148,021 440,473
--------- ---------
CASH, end of period 197,445 383,412
--------- ---------
--------- ---------
The TSX Venture Exchange Inc. has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release.
Contacts: ENGINEERING.com, Inc. John Hayes President & CFO
905-273-9991, ext. 3280 or Toll Free: 1-877-997-9917 905-273-6691
(FAX) jhayes@engineering.com www.engineering.com
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