ENGINEERING.com Incorporated
TSX VENTURE : EGN

ENGINEERING.com Incorporated

August 17, 2010 15:33 ET

ENGINEERING.com Incorporated Announces Second Quarter 2010 Results

TORONTO, ONTARIO--(Marketwire - Aug. 17, 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 second quarter of 2010.

ENGINEERING.com revenue was $412,667 for the three months ended June 30, 2010, compared to revenue of $329,396 for the second quarter of 2009. The increase in overall revenue is the result of revenue growth in the Internet advertising business. The net loss for the three months ended June 30, 2010, totaled ($112,767) and ($0.00) per Common Share compared with a net loss of ($145,478) and ($0.00) for the same period a year ago.

Operating losses (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($58,402) or $0.00 per Common Share for the second quarter of 2010 compared with an operating loss of ($87,257) or ($0.00) per Common Share for the three months ended June 30, 2009. The operating expenses in the latest period were $285,875, down from $308,594 in the second quarter a year earlier.

"During the second quarter our Internet advertising revenue grew by 88% compared to the same period last year. Unfortunately, software revenues and gross profit margins were under pressure during that time," said John Hayes, President of ENGINEERING.com. "We also experienced increasing numbers of visitors, pages viewed and member registrations."

As at June 30, 2010, the Company had a cash balance of $197,445 compared to a cash balance of $383,412 as at June 30, 2009.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE:EGN) is the developer-owner of the www.ENGINEERING.com Web site and Internet-based business. ENGINEERING.com offers engineering content 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

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, 2010     December 31, 2009  
ASSETS            
Current Assets            
  Cash   197,445     106,118  
  Accounts Receivable   277,311     291,761  
  Prepaid Expenses and Deposits   24,707     30,391  
    Total Current Assets   499,463     428,270  
             
  Capital Assets, net   23,429     27,916  
  Intangible Assets, net   328,346     412,993  
    TOTAL ASSETS   851,238     869,179  
             
LIABILITIES AND SHAREHOLDERS EQUITY            
LIABILITIES            
  Accounts Payable & Accrued Liabilities   913,445     707,147  
  Deferred Income   64,161     46,614  
  Promissory notes - short-term   4,031     24,999  
    TOTAL LIABILITIES   981,637     778,760  
             
SHAREHOLDERS EQUITY            
  Share Capital   15,113,752     15,113,752  
  Contributed Surplus   430,439     417,959  
  Deficit   (15,674,590 )   (15,441,292 )
    TOTAL SHAREHOLDERS EQUITY   (130,399 )   90,419  
             
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY   851,238     869,179  

 

Engineering.Com            
Statements of Operations and Deficit            
(Unaudited)   Three months     Three months  
    ended     ended  
    June 30, 2010     June 30, 2009  
             
REVENUE   412,667     329,396  
COST OF SALES   185,194     108,059  
GROSS PROFIT   227,473     221,337  
             
GROSS PROFIT %   55.1 %   67.2 %
             
EXPENSES (INCOME)            
  Salaries & benefits   145,179     133,931  
  Marketing expenses   28,702     22,579  
  Development costs   56,154     67,166  
  General & Administrative   55,840     84,918  
    285,875     308,594  
             
Operating Income (Loss) (EBITDA) before under noted items:   (58,402 )   (87,257 )
             
Stock based compensation   (6,239 )   (9,061 )
Amortization Expense   (48,126 )   (49,160 )
    (54,365 )   (58,221 )
             
NET LOSS   (112,767 )   (145,478 )
             
BASIC AND DILUTED LOSS PER SHARE   (0.00 )   (0.00 )
             
Weighted Average Number of Common Shares (basic and diluted)   36,870,623     36,870,623  
             
Consolidated Statements of Deficit            
  DEFICIT, beginning of period   (15,561,823 )   (15,153,206 )
  Net Loss   (112,767 )   (145,478 )
  DEFICIT, end of period   (15,674,590 )   (15,298,684 )

 

Engineering.Com Inc.            
Cash Flow Statements            
(Unaudited)            
    Three Months     Three Months  
    Ended     Ended  
    June 30, 2010     June 30, 2009  
OPERATING ACTIVITIES            
             
Net Loss   (112,767 )   (145,478 )
ADD - Items not affecting cash            
  Stock based compensation   6,239     9,061  
  Amortization   48,126     49,160  
Changes in operating assets and liabilities other than cash   122,906     56,292  
  CASH FLOWS FROM OPERATING ACTIVITIES   64,504     (30,965 )
             
FINANCING ACTIVITIES            
             
  Promissory notes   (12,004 )   (19,863 )
  Proceeds of share issuance   --     (2,962 )
    CASH FLOWS FROM FINANCING ACTIVITIES   (12,004 )   (22,825 )
             
INVESTING ACTIVITIES            
             
  Fixed Assets   (3,076 )   (3,271 )
  CASH FLOWS FROM INVESTING ACTIVITIES   (3,076 )   (3,271 )
             
Net increase (decrease) in cash   49,424     (57,061 )
             
CASH, beginning of period   148,021     440,473  
             
CASH, end of period   197,445     383,412  

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