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 2009, year
ended December 31, 2009 and first quarter 2010 results.
ENGINEERING.com revenue was $1,433,566 for the fiscal year 2009,
compared to revenue of $1,444,768 for the year 2008. Revenue for
the three months ended December 31, 2009 was $489,163 compared to
$340,828 for the fourth quarter of 2008. The net loss for the year
ended December 31, 2009 totaled ($482,794) and ($0.01) per Common
Share compared with a net loss of ($520,253) and ($0.02) for the
same period a year ago. During 2008, the Company had revenues of
$279,305 from the provision of services to a former related party
while corresponding revenues from related parties for 2009 declined
to $4,800.
For the three months ended March 31, 2010, Engineering.com
revenues were $317,771 as compared to revenue of $250,926 for the
first quarter of 2009. The net loss for the three months ended
March 31, 2010, totaled ($120,531) and ($0.00) per Common Share
compared with a net loss of ($194,708) and ($0.01) for the same
period a year ago. The increase in revenue is the result of
increasing Internet advertising revenue. This revenue growth is
derived from higher traffic to the Company's web sites and to
growth in the Company's network of advertising partner web
sites.
Operating earnings (EBITDA) measured as earnings before
interest, taxes, amortization and stock-based compensation, was
$7,099 or $0.00 per Common Share for the fourth quarter of 2009
compared with a operating loss of ($93,830) or $0.00 per Common
Share for the three month period ended December 31, 2008. Operating
loss for fiscal 2009 was ($259,247) or ($0.01) per Common Share
compared to an operating loss of ($278,935) or ($0.01) per Common
Share for fiscal 2008. The operating expenses in the fourth quarter
were $289,323 and for the year were $1,193,078 compared to $289,264
for the fourth quarter a year earlier and $1,228,355 for fiscal
2008.
Operating losses for the first quarter of 2010 were ($64,718) or
($0.00) per Common Share compared with an operating loss of
($133,975) or ($0.00) per Common Share for the three months ended
March 31, 2009. The operating expenses in the latest period were
$272,124, down from $302,423 in the first quarter a year earlier.
The reduction in operating expense resulted from lower salaries,
marketing expenses and development costs.
"During 2009 and into the first quarter of 2010 the company's
primary web site experienced a significant increase in page views
and corresponding growth in Internet advertising revenue," said
John Hayes, President of ENGINEERING.com.
As at December 31, 2009, the Company had a cash balance of
$106,118 compared to a cash balance of $311,988 as at December 31,
2008. On March 31, 2010, the Company had a cash balance of $148,017
compared to a cash balance of $440,473 as at March 31, 2009.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (TSX VENTURE: EGN) is the developer
and 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, 2009 Dec. 31, 2008
----------------------------------------------------------------------------
ASSETS
Current Assets
Cash 106,118 311,988
Accounts Receivable 291,761 189,109
Prepaid Expenses and Deposits 30,391 29,707
----------------------------------------------------------------------------
Total Current Assets 428,270 530,804
Property and Equipment, net 27,916 29,865
Intangible Assets, net 412,993 591,528
----------------------------------------------------------------------------
TOTAL ASSETS 869,179 1,152,197
----------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Liabilities 707,147 787,594
Deferred Revenue 46,614 84,247
Promissory Note - Short-term 24,999 58,464
----------------------------------------------------------------------------
Total Current Liabilities 778,760 930,305
Promissory Note - Long Term -- 28,971
----------------------------------------------------------------------------
TOTAL LIABILITIES 778,760 959,276
----------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Share Capital 15,113,752 14,759,008
Contributed Surplus 417,959 392,411
Deficit (15,441,292) (14,958,498)
----------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 90,419 192,921
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 869,179 1,152,197
----------------------------------------------------------------------------
ENGINEERING.com Incorporated
Statements of Income
(Cdn. $) (unaudited) (unaudited) (audited) (audited)
Three Months Three Months Year Year
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2009 2008 2009 2008
----------------------------------------------------------------------------
Revenue 489,163 340,828 1,433,566 1,444,768
Cost of Sales 192,741 145,394 499,735 495,348
----------------------------------------------------------------------------
GROSS PROFIT 296,422 195,434 933,831 949,420
----------------------------------------------------------------------------
Expenses
Salaries & Benefits 135,350 163,579 535,903 643,082
Marketing Expenses 18,803 10,946 86,905 38,556
Development Costs 55,528 72,212 263,067 233,187
General &
Administrative 79,642 42,527 307,203 313,530
----------------------------------------------------------------------------
289,323 289,264 1,193,078 1,228,355
----------------------------------------------------------------------------
Operating Income/(Loss)
before Under-noted
Items: 7,099 (93,830) (259,247) (278,935)
Stock Based
Compensation (1,057) 3,444 (25,548) (46,348)
Amortization Expense (50,106) (48,970) (197,999) (194,970)
----------------------------------------------------------------------------
Net Loss (44,063) (139,356) (482,794) (520,253)
----------------------------------------------------------------------------
Basic and Diluted (Loss)
per Share (0.00) (0.00) (0.01) (0.02)
Weighted Average Number
of Common Shares (basic
and diluted) 36,870,623 29,496,499 36,638,235 29,496,499
----------------------------------------------------------------------------
Consolidated Statements
of Deficit
----------------------------------------------------------------------------
Deficit, beginning
of period (15,397,229) (14,819,142) (14,958,498) (14,438,245)
----------------------------------------------------------------------------
Net Income (Loss) (44,063) (139,356) (482,794) (520,253)
Deficit, end of
period (15,441,292) (14,958,498) (15,441,292) (14,958,498)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ENGINEERING.com Incorporated
Cash Flow Statements
(Cdn. $)
(unaudited) (unaudited) (audited) (audited)
Three Months Three Months Year Year
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2009 2008 2009 2008
----------------------------------------------------------------------------
OPERATING ACTIVITIES
Net Loss (44,063) (139,356) (482,794) (520,253)
ADD - Items Not Affecting
Cash
Stock Based Compensation 1,057 (3,444) 25,548 46,348
Amortization 50,106 48,970 197,999 194,970
Changes in operating assets
and liabilities other than
cash (82,329) 126,119 (221,416) 348,066
----------------------------------------------------------------------------
CASH FROM OPERATING
ACTIVITIES (75,230) 32,289 (480,663) 69,131
----------------------------------------------------------------------------
FINANCING ACTIVITIES
Promissory Notes (13,317) (1,730) (62,436) (29,326)
Proceeds of Share issuance 354,744
----------------------------------------------------------------------------
----------------------------------------------------------------------------
CASH FROM FINANCING
ACTIVITIES (13,317) (1,730) 292,308 (29,326)
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Additions to Property and
Equipment (4,905) (446) (17,515) (16,733)
----------------------------------------------------------------------------
CASH FROM INVESTING
ACTIVITIES (4,905) (446) (17,515) (16,733)
----------------------------------------------------------------------------
Net Increase (Decrease) in
Cash (93,452) 30,113 (205,870) 23,072
CASH, beginning of period 199,570 281,875 311,988 288,916
----------------------------------------------------------------------------
CASH, end of period 106,118 311,988 106,118 311,988
----------------------------------------------------------------------------
Engineering.Com
Balance Sheet
As at March 31, 2008
Unaudited Audited
March 31, December 31,
2010 2009
ASSETS
Current Assets
--------------
Cash 148,017 106,118
Accounts Receivable 229,634 291,761
Prepaid Expenses and Deposits 26,706 30,391
------------ -------------
Total Current Assets 404,357 428,270
------------ -------------
Property & Equipment, net 26,588 27,916
Intangible Assets, net 370,237 412,993
------------ -------------
TOTAL ASSETS 801,182 869,179
------------ -------------
------------ -------------
LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
-------------------
Accounts Payable & Accrued Liabilities 743,205 707,147
Deferred Income 65,818 46,614
Promissory notes - short-term 16,035 24,999
------------ -------------
TOTAL LIABILITIES 825,058 778,760
------------ -------------
SHAREHOLDERS EQUITY
Share Capital 15,113,752 15,113,752
Contributed Surplus 424,196 417,959
Deficit (15,561,824) (15,441,292)
------------ -------------
TOTAL SHAREHOLDERS EQUITY (23,876) 90,419
------------ -------------
------------ -------------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 801,182 869,179
------------ -------------
------------ -------------
ENGINEERING.com
Statements of Income
Three Three
(Unaudited) months months
ended ended
March 31, March 31,
2009 2009
REVENUE 317,771 250,926
COST OF SALES 110,365 82,478
------------ -----------
GROSS PROFIT 207,406 168,448
EXPENSES (INCOME)
Salaries & benefits 134,018 145,284
Marketing expenses 19,797 22,079
Development costs 50,083 66,697
General & Administrative 68,226 68,363
------------ -----------
272,124 302,423
------------ -----------
Operating Income (Loss) (EBITDA) before under noted
items: (64,718) (133,975)
Stock based compensation (6,240) (11,587)
Amortization Expense (49,573) (49,146)
------------ -----------
(55,813) (60,733)
------------ -----------
------------ -----------
NET LOSS (120,531) (194,708)
------------ -----------
------------ -----------
BASIC AND DILUTED LOSS PER SHARE (0.00) (0.01)
Weighted Average Number of Common Shares (basic and
diluted) 36,870,623 31,872,606
Consolidated Statements of Deficit
------------ -----------
DEFICIT, beginning of period (15,441,292)(14,958,498)
------------ -----------
Net Loss (120,531) (194,708)
DEFICIT, end of period (15,561,823)(15,153,206)
------------ -----------
------------ -----------
ENGINEERING.com Inc.
Cash Flow Statements
(Unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
2010 2009
OPERATING ACTIVITIES
Net loss (120,531) (194,708)
ADD - Items not affecting cash
Stock based compensation 6,240 11,587
Amortization 49,573 49,146
Changes in operating assets and liabilities other
than cash 121,074 (80,194)
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES (56,356) (214,169)
------------ ------------
FINANCING ACTIVITIES
Promissory notes (8,964) (11,997)
Proceeds from share issuance -- 357,706
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES (8,964) 345,706
------------ ------------
INVESTING ACTIVITIES
Fixed assets (5,489) (3,055)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES (5,489) (3,055)
------------ ------------
Net increase (decrease) in cash 41,903 128,485
CASH, beginning of period 106,118 311,988
------------ ------------
CASH, end of period 148,017 440,473
------------ ------------
------------ ------------
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) www.engineering.com
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