ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com
online resource and business for engineers today announced its financial results
for the third quarter of 2008.
ENGINEERING.com revenue was $399,136 for the three months ended September 30,
2008, compared to revenue of $566,176 for the third quarter of 2007. The net
loss for the three months ended September 30, 2008, totaled ($113,003) and
($0.00) per Common Share compared with a net loss of ($66,220) and ($0.00) for
the same period a year ago.
The Company experienced sales growth during the third quarter and year to date
from sales of education titles, most notably CATIA and from increases in online
advertising revenue. Total reported revenue for the quarter declined, however,
due to the impact of declines in revenues from a formerly related party, Rand
Worldwide.
Operating profit (EBITDA) measured as earnings before interest, taxes,
amortization and stock-based compensation, was a loss of ($47,751) or $0.00 per
Common Share for the third quarter of 2008 compared with an operating profit of
$4,684 or ($0.00) per Common Share for the three months ended September 30,
2007. The operating expenses in the latest period were $310,136 compared to
$341,027 for the third quarter a year earlier.
"During the third quarter the Company experienced strong growth in the number of
visitors to our website and record gains in new members," said John Hayes,
President of ENGINEERING.com. "This in turn is generating a growing stream of
advertising revenue."
As at September 30, 2008, the Company had a cash balance of $281,875 compared to
a cash balance of $183,522 as at September 30, 2007.
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 and asset dispositions. 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. 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
September December
30, 2008 31, 2007
ASSETS
Current Assets
--------------
Cash 281,875 288,916
Accounts Receivable 238,520 146,063
Prepaid Expenses and Deposits 27,917 58,044
Due from related parties - 330,557
----------- -----------
Total Current Assets 548,312 823,580
----------- -----------
Capital Assets, net 33,756 29,567
Intangible Assets, net 636,162 770,063
----------- -----------
TOTAL ASSETS 1,218,230 1,623,210
----------- -----------
----------- -----------
LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
-------------------
Accounts Payable & Accrued Liabilities 748,253 768,878
Deferred Income 45,091 70,745
Promissory notes - short-term 51,082 47,582
----------- -----------
Total current liabilities 844,426 887,205
----------- -----------
Promissory notes - long-term 38,083 69,179
----------- -----------
TOTAL LIABILITIES 882,509 956,384
----------- -----------
----------- -----------
SHAREHOLDERS EQUITY
Share Capital 14,759,008 14,759,008
Contributed Surplus 395,855 346,063
Deficit (14,819,142) (14,438,245)
----------- -----------
TOTAL SHAREHOLDERS EQUITY 335,721 666,826
----------- -----------
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,218,230 1,623,210
----------- -----------
----------- -----------
Engineering.Com
Statements of Income
(Unaudited) Three months Three months
ended ended
September September
30, 2008 30, 2007
REVENUE 399,136 566,176
COST OF SALES 136,751 220,465
------------ ------------
GROSS PROFIT 262,385 345,711
EXPENSES (INCOME)
Salaries & benefits 168,106 179,612
Marketing expenses 8,286 4,911
Development costs 49,806 51,347
General & Administrative 83,938 105,157
------------ ------------
310,136 341,027
------------ ------------
Operating Income (Loss) (EBITDA) before under
noted items: (47,751) 4,684
Stock based compensation (16,334) (21,467)
Amortization expense (48,918) (49,437)
------------ ------------
(65,252) (70,904)
------------ ------------
------------ ------------
NET LOSS (113,003) (66,220)
------------ ------------
------------ ------------
BASIC AND DILUTED LOSS PER SHARE (0.00) (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 (14,706,139) (14,359,309)
Net Loss (113,003) (66,220)
------------ ------------
DEFICIT, end of period (14,819,142) (14,425,529)
------------ ------------
------------ ------------
Engineering.Com Inc.
Cash Flow Statements
(Unaudited)
Three Months Three Months
Ended Ended
September September
30, 2008 30, 2007
OPERATING ACTIVITIES
Net Loss (113,003) (66,220)
ADD - Items not affecting cash
Stock based compensation 16,334 21,467
Amortization 48,918 49,437
Changes in operating assets and
liabilities other than cash (44,789) 10,438
------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES (92,540) 15,122
------------- ------------
FINANCING ACTIVITIES
Promissory Notes (8,508) (58,100)
------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES (8,508) (58,100)
------------- ------------
INVESTING ACTIVITIES
Fixed Assets (6,134) (3,768)
------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES (6,134) (3,768)
------------- ------------
Net increase (decrease) in cash (107,182) (46,746)
CASH, beginning of period 389,057 230,268
------------- ------------
CASH, end of period 281,875 183,522
------------- ------------
------------- ------------
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