TORONTO, ONTARIO , developer of the ENGINEERING.com online
resource and business for engineers today announced its financial
results for the second quarter of 2008.
ENGINEERING.com revenue was $317,050 for the three months ended
June 30, 2008, compared to revenue of $532,607 for the second
quarter of 2007. The net loss for the three months ended June 30,
2008, totaled ($162,536) and ($0.01) per Common Share compared with
a net loss of ($77,422) and ($0.00) for the same period a year ago.
The decrease in revenue is attributed primarily to decreasing
revenues associated with the provision of information technology
services to a related party. As at June 30, 2008, the Company had a
cash balance of $389,057 compared to a cash balance of $230,268 as
at June 30, 2007.
Operating loss measured as earnings before interest, taxes,
amortization and stock-based compensation, was ($97,180) or $0.00
per Common Share for the second quarter of 2008 compared with an
operating loss of ($5,318) or ($0.00) per Common Share for the
three months ended June 30, 2007. The operating expenses in the
latest period were $323,380, down from $379,325 in the second
quarter a year earlier. The reduction in operating expense resulted
from lower salaries and administrative expenses.
"During the second quarter of this year we saw a significant
increase in the number of visitors, page views and registration for
services at ENGINEERING.com," said John Hayes, President. "We look
forward to sustaining our momentum by building additional features
to increase our web traffic and related advertising revenues."
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
Unaudited Audited
June 30, 2008 December 31, 2007
ASSETS
Current Assets
--------------
Cash 389,057 288,916
Accounts Receivable 119,912 146,063
Due from related parties 30,973 330,557
Prepaids Expenses and Deposits 51,663 58,044
--------------- -----------------
Total Current Assets 591,605 823,580
--------------- -----------------
Capital Assets, net 31,905 29,567
Intangible Assets, net 680,796 770,063
--------------- -----------------
TOTAL ASSETS 1,304,306 1,623,210
--------------- -----------------
--------------- -----------------
LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
-------------------
Accounts Payable & Accrued Liabilities 735,538 768,878
Deferred Income 38,672 70,745
Promissory notes - short-term 48,946 47,582
--------------- -----------------
Total current liabilities 823,156 887,205
--------------- -----------------
Promissory notes - long-term 48,727 69,179
--------------- -----------------
TOTAL LIABILITIES 871,883 956,384
--------------- -----------------
--------------- -----------------
SHAREHOLDERS EQUITY
Share Capital 14,759,008 14,759,008
Contributed Surplus 379,521 346,063
Deficit (14,706,106) (14,438,245)
--------------- -----------------
TOTAL SHAREHOLDERS EQUITY 432,423 666,826
--------------- -----------------
--------------- -----------------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,304,306 1,623,210
--------------- -----------------
--------------- -----------------
Engineering.Com
Statements of Income
(Unaudited) Three months Three months
ended ended
June 30, 2008 June 30, 2007
REVENUE 317,050 532,607
COST OF SALES 90,850 158,600
-------------- --------------
GROSS PROFIT 226,200 374,007
GROSS PROFIT % 71.3% 70.2%
EXPENSES (INCOME)
Salaries & benefits 160,318 193,770
Marketing expenses 13,950 6,309
Development costs 55,934 67,988
General & Administrative 93,178 111,258
-------------- --------------
323,380 379,325
-------------- --------------
Operating Income (Loss) (EBITDA) before
under noted items: (97,180) (5,318)
Stock based compensation (16,611) (21,467)
Amortization Expense (48,745) (50,637)
-------------- --------------
(65,356) (72,104)
-------------- --------------
-------------- --------------
NET LOSS (162,536) (77,422)
-------------- --------------
-------------- --------------
BASIC AND DILUTED LOSS PER SHARE (0.01) (0.00)
Weighted Average Number of Common Shares
(basic and diluted) 29,496,499 29,496,499
Consolidated Statements of Deficit
-------------- --------------
DEFICIT, beginning of period (14,543,603) (14,281,887)
-------------- --------------
Net Loss (162,536) (77,422)
DEFICIT, end of period (14,706,139) (14,359,309)
-------------- --------------
-------------- --------------
Engineering.Com Inc.
Cash Flow Statements
(Unaudited)
Three Months Three Months
Ended Ended
June 30, 2008 June 30,2007
OPERATING ACTIVITIES
Net Loss (162,536) (77,422)
ADD - Items not affecting cash
Stock based compensation 16,611 21,467
Amortization 48,745 50,638
Changes in operating assets and liabilities
other than cash 227,929 (62,329)
-------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES 130,749 (67,646)
-------------- -------------
FINANCING ACTIVITIES
Promissory Notes (12,969) (70,051)
-------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES (12,969) (70,051)
-------------- -------------
INVESTING ACTIVITIES
Fixed Assets (3,523) (11,545)
-------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES (3,523) (11,545)
-------------- -------------
Net increase (decrease) in cash 114,257 (149,242)
CASH, beginning of period 274,800 379,510
-------------- -------------
CASH, end of period 389,057 230,268
-------------- -------------
-------------- -------------
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. 280 or Toll Free: 1-877-997-9917 (905)
273-6691 (FAX) Email: jhayes@engineering.com Website:
www.engineering.com
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