ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com
online resource and business for engineers today announced its financial results
for the fourth quarter and year ended December 31, 2007.
ENGINEERING.com revenue was $2,214,221 for the fiscal year 2007, compared to
revenue of $2,295,301 for the year 2006. Revenue for the three months ended
December 31, 2007 was $572,273 compared to $563,969 for the fourth quarter of
2006. The net loss for the year ended December 31, 2007 totaled ($217,425) and
($0.01) per Common Share compared with a net loss of ($262,090) and ($0.01) for
the same period a year ago.
Operating income (EBITDA) measured as earnings before interest, taxes,
amortization and stock-based compensation, was $49,036 or $0.00 per Common Share
for the fourth quarter of 2007 compared with a operating profit of $20,253 or
$0.00 per Common Share for the three month period ended December 31, 2006.
Operating income for fiscal 2007 was $58,804 or $0.00 per Common Share compared
to an operating profit of $30,477 or $0.00 per Common Share for fiscal 2006. The
operating expenses in the latest period were $321,000 and for the year were
$1,412,958 compared to $354,683 for the fourth quarter a year earlier and
$1,523,000 for fiscal 2006.
"During 2007 the company experienced revenue growth in our software business and
began to drive revenue in Internet advertising. These reported revenue gains
were made against the headwind of a declining currency in the United States, our
largest market," said John Hayes, President of ENGINEERING.com. "Revenue gains
in software and advertising were largely offset by a decline in the IT services
we provided to RAND Worldwide, a related company."
As at December 31, 2007, the Company had a cash balance of $288,916 compared to
a cash balance of $187,190 as at December 31, 2006.
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
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 operating 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. The Company's ability to continue as a going concern is dependent
upon its ability to generate future profitable operations and/or to obtain the
necessary financing to meet its obligations and repay its liabilities arising
from normal business operations when they come due. 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 Incorporated
Balance Sheets
(Cdn. $)
(audited) (audited)
As at As at
Dec. 31, 2007 Dec. 31, 2006
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ASSETS
Current Assets
Cash 288,916 187,190
Accounts Receivable 146,063 209,012
Prepaid Expenses and Deposits 58,044 55,938
Due from Related Parties 330,557 232,470
---------------------------------------------------------------------------
Total Current Assets 823,580 684,610
Property and Equipment, net 29,567 32,300
Intangible Assets, net 770,063 948,598
---------------------------------------------------------------------------
TOTAL ASSETS 1,623,210 1,665,508
---------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
-----------
Current Liabilities
Accounts Payable and Accrued Liabilities 768,878 511,706
Deferred Revenue 70,745 30,725
Promissory Note - Short-term 47,582 160,812
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Total Current Liabilities 887,205 703,243
Promissory Note - Long Term 69,179 155,763
---------------------------------------------------------------------------
TOTAL LIABILITIES 956,384 859,006
---------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
--------------------
Share Capital 14,759,008 14,759,008
Contributed Surplus 346,063 268,314
Deficit (14,438,245) (14,220,820)
---------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 666,826 806,502
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,623,210 1,665,508
---------------------------------------------------------------------------
ENGINEERING.com Incorporated
Statements of Income
(Cdn. $) (unaudited) (unaudited) (audited) (audited)
Three Months Three Months Year Year
Ended Ended Ended Ended
Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2006
---------------------------------------------------------------------------
Revenue 572,273 563,969 2,214,221 2,295,301
Cost of Sales 202,237 189,033 742,459 741,824
---------------------------------------------------------------------------
GROSS PROFIT 370,036 374,936 1,471,762 1,553,477
---------------------------------------------------------------------------
Expenses
Salaries & Benefits 152,057 194,574 727,687 835,444
Marketing Expenses 6,302 3,772 24,352 10,533
Development Costs 58,197 72,309 238,126 277,876
General &
Administrative 104,444 84,028 422,793 399,147
---------------------------------------------------------------------------
321,000 354,683 1,412,958 1,523,000
---------------------------------------------------------------------------
Operating Income
/(Loss) before
Under-noted Items: 49,036 20,253 58,804 30,477
Stock Based
Compensation (13,348) (15,955) (77,749) (77,299)
Amortization
Expense (48,405) (51,823) (198,480) (220,266)
Other income -
tax recovery - (11,002) - 4,998
---------------------------------------------------------------------------
Net Loss (12,717) (58,527) (217,425) (262,090)
---------------------------------------------------------------------------
Basic and Diluted
(Loss) per Share (0.00) (0.00) (0.01) (0.01)
Weighted Average
Number of
Common Shares 29,496,499 29,496,499 29,496,499 29,496,499
(basic and diluted)
---------------------------------------------------------------------------
Consolidated Statements
of Deficit
---------------------------------------------------------------------------
Deficit, beginning
of period (14,425,529) (14,162,293) (14,220,820) (13,958,730)
---------------------------------------------------------------------------
Net Income (Loss) (12,717) (58,527) (217,425) (262,090)
Deficit, end
of period (14,438,245) (14,220,820) (14,438,245) (14,220,820)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
ENGINEERING.com Incorporated
Cash Flow Statements
(Cdn. $)
(unaudited) (unaudited) (audited) (audited)
Three Months Three Months Year Year
Ended Ended Ended Ended
Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2006
---------------------------------------------------------------------------
OPERATING ACTIVITIES
Net Loss (12,717) (58,525) (217,425) (262,090)
ADD - Items Not
Affecting Cash
Stock Based
Compensation 13,348 15,955 77,749 77,299
Amortization 48,404 49,105 198,480 217,549
Changes in
operating
assets and
liabilities
other than cash 69,613 586 259,948 (124,007)
---------------------------------------------------------------------------
CASH FROM OPERATING
ACTIVITIES 118,648 7,121 318,752 (91,249)
---------------------------------------------------------------------------
FINANCING ACTIVITIES
Promissory Notes (11,355) (64,396) (199,814) (178,530)
---------------------------------------------------------------------------
CASH FROM FINANCING
ACTIVITIES (11,355) (64,396) (199,814) (178,530)
---------------------------------------------------------------------------
INVESTING ACTIVITIES
Note Receivable - 74,091 - 296,363
Additions to
Property and
Equipment (1,899) (10,258) (17,212) (18,741)
---------------------------------------------------------------------------
CASH FROM INVESTING
ACTIVITIES (1,899) 63,832 (17,212) 277,622
---------------------------------------------------------------------------
Net Increase
(Decrease) in Cash 105,394 6,557 101,726 (7,843)
CASH, beginning
of period 183,522 180,633 187,190 179,347
---------------------------------------------------------------------------
CASH, end of period 288,916 187,190 288,916 187,190
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