ENGINEERING.com Incorporated
TSX VENTURE : EGN

ENGINEERING.com Incorporated

November 01, 2007 14:23 ET

ENGINEERING.com Incorporated Announces Third Quarter 2007 Results

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2007) - 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 2007.

ENGINEERING.com revenue was $566,176 for the three months ended September 30, 2007, compared to revenue of $578,291 for the third quarter of 2006. The net loss for the three months ended September 30, 2007, totaled ($66,220) and ($0.00) per Common Share compared with a net loss of ($66,180) and ($0.00) for the same period a year ago.

The Company experienced sales growth during the third quarter and year to date from education titles, most notably CATIA. Total reported revenue for the quarter declined, however, due to the impact of the rising Canadian dollar on sales into the United States and also due to declines in revenues to related parties.

Operating profit (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was $4,684 or $0.00 per Common Share for the third quarter of 2007 compared with a operating profit of $5,211 or ($0.00) per Common Share for the three months ended September 30, 2006. The operating expenses in the latest period were $341,027 compared to $365,336 for the third quarter a year earlier. This reduction in operating expense was largely the result of a decline in personnel servicing the information technology business.

"During the third quarter the Company introduced a number of new features for our online community of engineers," said John Hayes, President of ENGINEERING.com. "These new features are driving increasing membership, which in turn is generating a growing stream of advertising revenue."

The Company also announced that it has entered into an agreement to provide a Japanese version of Collaboration Suite, its engineering collaboration solution. The Japanese version will enable engineers around the world to communicate in English or Japanese on distributed engineering projects.

As at September 30, 2007, the Company had a cash balance of 183,522 compared to a cash balance of $180,633 as at September 30, 2006.

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 30, 2007 December 31, 2006

ASSETS
Current Assets
---------------
Cash 183,522 187,190
Accounts Receivable 165,711 209,012
Prepaid Expenses and Deposits 47,424 55,938
Due from related parties 317,583 232,470
------------------ ------------------
Total Current Assets 714,240 684,610
------------------ ------------------

Capital Assets, net 31,439 32,300

Intangible Assets, net 814,697 948,598
------------------ ------------------

TOTAL ASSETS 1,560,379 1,665,508
------------------ ------------------
------------------ ------------------

LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
-------------------
Accounts Payable & Accrued Liabilities 709,648 511,706
Deferred Income 56,418 30,725
Promissory notes - short-term 47,750 160,812
------------------ ------------------
Total current liabilities 813,816 703,243
------------------ ------------------

Promissory notes - long-term 80,366 155,763

------------------ ------------------
TOTAL LIABILITIES 894,182 859,006
------------------ ------------------
------------------ ------------------

SHAREHOLDERS EQUITY
Share Capital 14,759,008 14,759,008
Contributed Surplus 332,715 268,314
Deficit (14,425,529) (14,220,820)
------------------ ------------------
TOTAL SHAREHOLDERS EQUITY 666,194 806,502
------------------ ------------------

------------------ ------------------
TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY 1,560,376 1,665,508
------------------ ------------------
------------------ ------------------


Engineering.Com
Statements of Income
(Unaudited) Three months Three months
ended ended
September 30, 2007 September 30, 2006

REVENUE 566,176 578,291

COST OF SALES 220,465 207,744
------------------ ------------------

GROSS PROFIT 345,711 370,547

EXPENSES (INCOME)
Salaries & benefits 179,612 202,828
Marketing expenses 4,911 799
Development costs 51,347 67,045
General & Administrative 105,157 94,664
------------------ ------------------
341,027 365,336
------------------ ------------------

Operating Income (Loss) (EBITDA)
before under noted items: 4,684 5,211

Stock based compensation (21,467) (21,237)

Amortization expense (49,437) (50,154)

------------------ ------------------
(70,904) (71,391)
------------------ ------------------

------------------ ------------------
NET LOSS (66,220) (66,180)
------------------ ------------------
------------------ ------------------

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 (14,359,309) (14,096,113)
Net Loss (66,220) (66,180)
------------------ ------------------
DEFICIT, end of period (14,425,529) (14,162,293)
------------------ ------------------
------------------ ------------------


Engineering.Com Inc.
Cash Flow Statements
(Unaudited)
Three Months Three Months
Ended Ended
September 30, 2007 September 30, 2006

OPERATING ACTIVITIES

Net Loss (66,220) (66,180)

ADD - Items not affecting cash

Stock based compensation 21,467 21,237

Amortization 49,437 50,154

Changes in operating assets
and liabilities other than cash 10,438 (79,932)

------------------ ------------------
CASH FLOWS FROM OPERATING ACTIVITIES 15,122 (74,721)
------------------ ------------------
FINANCING ACTIVITIES

Promissory Notes (58,100) (41,283)

------------------ ------------------
CASH FLOWS FROM FINANCING ACTIVITIES (58,100) (41,283)
------------------ ------------------

INVESTING ACTIVITIES
Note receivable - 74,091
Fixed Assets (3,768) (7,116)

------------------ ------------------
CASH FLOWS FROM INVESTING ACTIVITIES (3,768) 66,925
------------------ ------------------

Net increase (decrease) in cash (46,746) (49,079)

CASH, beginning of period 230,268 229,712
------------------ ------------------
CASH, end of period 183,522 180,633
------------------ ------------------
------------------ ------------------

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 Incorporated
    John Hayes
    President & CFO
    (905) 273-9991, ext. 280 or Toll Free: 1-877-997-9917
    (905) 273-6691 (FAX)
    Website: www.engineering.com