TORONTO, ONTARIO — (Marketwire) — 08/12/11 — ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the ENGINEERING.com online resource for engineers today announced its unaudited financial results for the second quarter ended June 30, 2011.
Beginning with the first quarter of 2011, Engineering.com reported its financial results in accordance with International Financial Reporting Standards (IFRS), as required for public companies in Canada. Previously, the Company reported its financial results under Canadian Generally Accepted Accounting Standards (GAAP). Financial results for the corresponding period in 2010 have been restated to reflect the adoption of IFRS.
ENGINEERING.com revenue was $370,682 for the three month ended June 30, 2011, compared to revenue of $412,667 for the second quarter in 2010. The net loss for the three months ended June 30, 2011, totaled ($75,459) and ($0.00) per Common Share compared with a net loss of ($111,939) and ($0.00) for the same period a year ago. The decrease in revenue is the result of decreasing software sales.
Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($67,213) or ($0.00) per Common Share for the second quarter of 2011 compared with an operating loss of ($58,402) or ($0.00) per Common Share for the three month period ended June 30, 2010. The operating expenses in the latest period were $275,400, down from $285,875 in the second quarter a year earlier.
“Traffic to our primary web site more than doubled in the year to date as compared to the first six months of 2010,” said John Hayes, President of ENGINEERING.com. “In addition, advertisers are discovering that our new sponsored video series like the and represent a powerful way for them to connect with engineers.”
As at June 30, 2011, the Company had a cash balance of $30,635 compared to a cash balance of $78,244 as at December 31, 2010. This cash balance is relatively small when compared to the Company-s ongoing obligations and in light of continued operating losses. On August 4, 2011 the Company announced a private placement of up to 7,000,000 Common Shares at a subscription price of $0.05 per share for gross proceeds of up to $350,000. The proceeds from this private placement will be used for general working capital purposes. This pending transaction is subject to regulatory approval. Readers are referred to page 9 of the Company-s 2010 Annual Management Discussion & Analysis under the heading, “Present Status and Risk Factors” as filed on April 28, 2011.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (TSX VENTURE: EGN) is the developer-owner of the Web site and business. ENGINEERING.com offers marketing and lead generation 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 .
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 IFRS 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 IFRS 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.
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
Toll Free: 1-877-997-9917
905-273-6691 (FAX)
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