August 06, 2009 16:00 ET

Cyberplex Announces Second Quarter Earnings Results

172% revenue growth year over year

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2009) - Cyberplex Inc. (TSX:CX) a leader in online performance-based advertising solutions, customer acquisition strategies and technology development, today announced its second quarter financial results for the period ended June 30, 2009.

- Revenue of $26 million increased 172% from the same quarter in the previous year

- Earnings before amortization, interest, taxes and foreign exchange of $2.5 million or 4 cents per share

- Net income of $1 million

- Net cash balance of $22 million in addition to $7 million of available credit facilities

- Working capital of $28 million

During the second quarter, Cyberplex once again continued its trend of delivering tremendous results despite the difficult conditions impacting the global advertising marketplace. By providing advertisers with an alternative to the traditional form of on-line advertising, the Company has posted another strong quarter and continues to execute with its performance-based advertising model.

"We are very pleased with our performance during the second quarter in what is typically a slower time for our industry", said Geoffrey Rotstein, President and Chief Executive Officer. "Our team has continued to execute according to the plan developed at the beginning of the year. With the traction of our model, the confidence placed in us by the investment community, and the extraordinary team that we've been able to assemble, we are excited about the opportunities for the remainder of the year."


- Closed a $17.2 million public financing by way of an underwritten bought deal of common shares in June 2009

- Increased sales force by over 40% to address the growing demand and opportunities being presented

- Continued to invest in the social media space by developing a new application for Facebook expected to launch in September 2009

- More than doubled international traffic to 10% of revenue by developing new sources of international traffic and advertising relationships

Second quarter revenue of $26 million was an increase of 172% over the $9.5 million generated during the same period a year ago. This growth was achieved primarily from the Web Advertising division. Growth in this division was a result of focusing on the addition of new publishers, working with advertisers to secure increases in campaign budgets, continued momentum of proprietary publishing initiatives and overall technology innovation. Income before amortization, interest, taxes and foreign exchange, for the quarter increased to $2.5 million, up from $380,000 generated in the second quarter of 2008. Gross margin this quarter was 30% compared to 34% in the second quarter of 2008 and consistent with the first quarter of 2009.

"We are very pleased with our second quarter", says Isaac Osiel, Chief Financial Officer. "As expected, even with the decline in second quarter revenue, we were still able to maintain our operating margin at 10%, once adjusted for foreign exchange, which is in line with previous quarters. The maintenance of our operating margin has again demonstrated the flexibility of our business model and that, along with a balance sheet that is stronger than at any time in our history, positions us very well for the remainder of 2009."


Cyberplex and its Board of Directors are pleased to announce the appointment of Douglas Steiner to the Board of Directors. Mr. Steiner will bring to the board over 25 years of financial business experience, and his extensive knowledge as a venture capitalist. Doug is a respected expert in the field of online commerce, and brings experience to the board in areas of auction theory and optimization. Most recently Mr. Steiner was the CEO of Perimeter Financial Corp which was acquired by CI Financial earlier this year. He is well known for his respected column in 'Report on Business Magazine'. Mr. Steiner received his BA (Economics) from the University of Western Ontario (1978) and an MBA from IMD Lausanne, Switzerland (1983).

Along with the appointment of Douglas Steiner, the Board has also accepted the resignation of Rafael Alter. Rafael has been a valuable member of the Board over the past few years and the Board wants to thank him sincerely for his contributions.

"We are extremely pleased to have someone of Doug's stature join our board. His proven experience in growing and operating high growth international organizations and his expertise and reputation in financial markets and information technology will benefit Cyberplex tremendously. We would also like to thank Rafael for his dedicated service to the company, and we look forward to continuing our relationship with him in other ways", said Vernon Lobo, Chairman of the Board.


In conjunction with the release, Cyberplex will host a conference call on Thursday, August 6, 2009 at 4:30 p.m. EST to discuss the financial results. The second quarter conference call is open to everyone, and can be accessed by;


To access the call, please dial in and provide the operator with the pass code. Please call ten minutes prior to the scheduled call. Geoffrey Rotstein, President and Chief Executive Officer, and Isaac Osiel, Chief Financial Officer, will discuss the results and the financial performance. A question and answer session will be held at the end of the call.

Participant Dial-in Numbers:

- U.S. Toll Free: 1-877-737-1669

- Canadian Toll Free: 1-800-501-6064

- International Toll: 302-709-8008

Verbal Passcode (to be given to the operator): VR63282

Playback Instructions:

A replay of the conference call will be available as of 12:00 a.m. the same day, until midnight August 17, 2009.

- Canada Toll Free: 1-888-204-0094

- U.S. Toll Free: 1-800-355-2355

- International Toll Free: 402-220-2946

Playback Passcode: 63282#


Cyberplex Inc. ( is a leader in providing web advertising solutions, online customer acquisition strategies and technology development. The Company, through its subsidiaries, leverages its proprietary affiliate network, robust advertising relationships and experience, along with technology design, development and solutions specialists to develop and implement web-based programs and solutions that have a proven record in delivering results.

With over 14 years of experience serving Fortune 1000 clients including FTD, Xerox, Sony Canada, IAC, Atlantic Lottery Corporation, Vista Print, Aecon, Ontario Power Generation, Scotia Bank and the Royal Bank of Canada, Cyberplex is frequently the firm of choice for business leaders looking for effective and reliable online solutions. Cyberplex serves clients across Canada and the US and is headquartered in Toronto, Canada.


This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements.

Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.


as at as at
June 30, 2009 December 31, 2008
------------- ------------------
(unaudited) (audited)

Current Assets:
Cash, cash equivalents and short-term
investments $ 21,718,022 $ 5,364,384
Accounts receivable, net of allowance
for doubtful accounts of $1,901,066
(2008 - $1,531,229) 10,344,970 14,079,236
Prepaid expenses and other assets 2,858,104 668,503
------------- ------------------
34,921,096 20,112,123

Capital assets 1,267,744 993,868
Goodwill 14,107,058 13,936,813
------------- ------------------
$ 50,295,898 $ 35,042,804
------------- ------------------
------------- ------------------


Current Liabilities:
Bank indebtedness $ - $ 3,535,264
Accounts payable and accrued liabilities 6,358,001 11,529,047
Unearned revenue 560,558 153,813
Deferred lease inducements 89,053 62,323
Income tax payable 137,574 -
------------- ------------------
7,145,186 15,280,447

Deferred lease inducements 159,251 153,774

Shareholders' equity 42,991,461 19,608,583

------------- ------------------
$ 50,295,898 $ 35,042,804
------------- ------------------
------------- ------------------


Three months ended Six months ended
June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008
(unaudited) (unaudited) (unaudited) (unaudited)
-------------- -------------- -------------- --------------

Revenue $ 25,723,174 $ 9,471,604 $ 57,864,712 $ 17,368,484
Cost of revenue 17,932,852 6,255,891 40,220,325 11,592,837
-------------- -------------- -------------- --------------
7,790,322 3,215,713 17,644,387 5,775,647
Sales and
marketing 3,198,928 1,835,838 7,510,144 3,329,153
General and
administrative 2,057,692 999,972 3,821,666 1,919,775
Foreign exchange
(gain) loss 1,285,175 29,775 812,591 (44,588)

Income before
the undernoted 1,248,527 350,128 5,499,986 571,307

Amortization of
capital assets 94,181 74,833 171,790 149,030
Amortization of
assets - 69,571 - 155,901

Income from
operations 1,154,346 205,724 5,328,196 266,376

Interest income
(expense) (15,360) 798 (56,101) (7,997)

-------------- -------------- -------------- --------------
Income before
income taxes 1,138,986 206,522 5,272,095 258,379

Income tax
expense 137,574 - 137,574 -

Net income 1,001,412 206,522 5,134,521 258,379

Unrealized gain
on available-
-sale-securities 50,315 - 101,055 -

-------------- -------------- -------------- --------------
income $ 1,051,727 $ 206,522 $ 5,235,576 $ 258,379
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------

Income per
Basic $ 0.02 $ 0.00 $ 0.09 $ 0.01
Diluted 0.02 0.00 0.09 0.01

Weighted average
number of common
shares used in
income per
Basic 59,865,543 52,286,535 56,744,769 49,703,691
Diluted 62,521,484 53,399,226 59,648,272 50,807,817

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