ENGINEERING.com Incorporated
TSX VENTURE : EGN

ENGINEERING.com Incorporated

July 21, 2009 12:33 ET

ENGINEERING.com Incorporated Announces Second Quarter 2009 Results

TORONTO, ONTARIO--(Marketwire - July 21, 2009) - ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com online resource and business for engineers today announced its financial results for the second quarter of 2009.

ENGINEERING.com revenue was $329,396 for the three months ended June 30, 2009, compared to revenue of $317,050 for the second quarter of 2008. The net loss for the three months ended June 30, 2009, totaled ($145,478) and ($0.00) per Common Share compared with a net loss of ($162,536) and ($0.01) for the same period a year ago. The increase in overall revenue is the net effect of an increase in Internet advertising revenues and a decline in related party revenue.

Operating losses measured as earnings before interest, taxes, amortization and stock-based compensation, was ($87,257) or $0.00 per Common Share for the second quarter of 2009 compared with an operating loss of ($97,180) or ($0.00) per Common Share for the three months ended June 30, 2008. The operating expenses in the latest period were $308,594, down from $323,380 in the second quarter a year earlier.

"During the second quarter our Internet advertising revenue more than tripled compared to the same period last year," said John Hayes, President of ENGINEERING.com. "We also experienced rapid increases in the number of visitors, page views and registration for services on our websites."

As at June 30, 2009, the Company had a cash balance of $383,412 compared to a cash balance of $389,057 as at June 30, 2008.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE:EGN) is the leading network for the engineering community, offering free and fee-based services and software to manufacturers, design consultants and engineering professionals 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, 2009     December 31, 2008  
ASSETS          
Current Assets          
Cash 383,412   311,988  
Accounts Receivable 120,127   189,109  
Prepaid Expenses and Deposits 40,746     29,707  
  Total Current Assets 544,285     530,804  
   
Capital Assets, net 27,152   29,865  
Intangible Assets, net 502,261     591,528  
  TOTAL ASSETS 1,073,698     1,152,197  
   
LIABILITIES AND SHAREHOLDERS EQUITY          
LIABILITIES          
Current Liabilities          
Accounts Payable & Accrued Liabilities 697,963   787,594  
Deferred Income 92,033   84,247  
Promissory notes - short-term 55,575     58,464  
  Total current liabilities 845,571     930,305  
   
Promissory notes - long-term --     28,971  
  TOTAL LIABILITIES 845,571     959,276  
   
SHAREHOLDERS EQUITY          
Share Capital 15,113,752   14,759,008  
Contributed Surplus 413,059   392,411  
Deficit (15,298,684 )   (14,958,498 )
  TOTAL SHAREHOLDERS EQUITY 228,127     192,921  
   
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,073,698     1,152,197  
           
           
           
Engineering.Com          
Statements of Operations and Deficit          
(Unaudited) Three months Three months  
  ended ended  
  June 30, 2009 June 30, 2008  
   
REVENUE 329,396     317,050  
COST OF SALES 108,059     90,850  
GROSS PROFIT 221,337     226,200  
   
GROSS PROFIT % 67.2%   71.3%  
           
EXPENSES (INCOME)          
Salaries & benefits 133,931     160,318  
Marketing expenses 22,579     13,950  
Development costs 67,166     55,934  
General & Administrative 84,918     93,178  
  308,594     323,380  
   
   
Operating Income (Loss) (EBITDA) before under noted          
items: (87,257 )   (97,180 )
   
Stock based compensation (9,061 )   (16,611 )
Amortization Expense (49,160 )   (48,745 )
  (58,221 )   (65,356 )
   
NET LOSS (145,478 )   (162,536 )
   
BASIC AND DILUTED LOSS PER SHARE (0.00 )   (0.01 )
   
Weighted Average Number of Common Shares (basic and diluted) 36,870,623     29,496,499  
   
Consolidated Statements of Deficit          
DEFICIT, beginning of period (15,153,206 )   (14,543,603 )
Net Loss (145,478 )   (162,536 )
DEFICIT, end of period (15,298,684 )   (14,706,139 )
           
           
           
Engineering.Com Inc.          
Cash Flow Statements          
(Unaudited)          
  Three Months     Three Months  
  Ended     Ended  
  June 30, 2009     June 30, 2008  
OPERATING ACTIVITIES          
   
Net Loss (145,478 ) (162,536 )
ADD - Items not affecting cash          
  Stock based compensation 9,061   16,611  
  Amortization 49,160   48,745  
Changes in operating assets and liabilities other than cash 56,292     227,929  
  CASH FLOWS FROM OPERATING ACTIVITIES (30,965 )   130,749  
   
FINANCING ACTIVITIES          
   
Promissory notes (19,863 ) (12,969 )
Proceeds of share issuance (2,962 )   --  
  CASH FLOWS FROM FINANCING ACTIVITIES (22,825 )   (12,969 )
   
INVESTING ACTIVITIES          
   
  Fixed Assets (3,271 )   (3,523 )
  CASH FLOWS FROM INVESTING ACTIVITIES (3,271 )   (3,523 )
   
Net increase (decrease) in cash (57,061 ) 114,257  
   
CASH, beginning of period 440,473     274,800  
   
CASH, end of period 383,412     389,057  
           
           
           

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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