ENGINEERING.com Incorporated
TSX VENTURE : EGN

ENGINEERING.com Incorporated

April 28, 2010 15:41 ET

ENGINEERING.com Incorporated Announces Fourth Quarter 2009, Fiscal 2009 and First Quarter 2010 Results

TORONTO, ONTARIO--(Marketwire - April 28, 2010) - 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, 2009   Dec. 31, 2008   Dec. 31, 2009   Dec. 31, 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, 2009   Dec. 31, 2008   Dec. 31, 2009   Dec. 31, 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, 2010   December 31, 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      
(Unaudited)  Three months   Three months
     ended   ended
    March 31, 2009   March 31, 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, 2010   March 31, 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.

Contact Information

  • 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