January 10, 2011 17:19 ET

Cyberplex Fourth Quarter Update

TORONTO, ONTARIO--(Marketwire - Jan. 10, 2011) - Cyberplex Inc. (TSX:CX) a leader in online publishing and customer acquisition strategies today provided an update on the financial outlook for the fourth quarter ended December 31, 2010 and commented on the current impact of Yahoo!-Bing search platform integration.

Fourth Quarter of 2010 Update

Following the second quarter of 2010, the Company provided second half of 2010 guidance, wherein revenues were expected to be in the range of $75 to $85 million, with adjusted EBITDA expected within the range of $10 to $12 million. This guidance was subsequently affirmed upon the release of third quarter of 2010 financial results, when the Company expected to either meet or exceed this guidance, depending on the impacts of Yahoo!'s transition to the Bing search platform during the month of December 2010.

"Although the Yahoo-Bing integration has been ongoing for several months, during which time we were able to adapt well to the volatile environment, in mid-December we began to experience average revenue per click decreases and the strategies we customarily deploy for responding to such decreases were not as effective," said Geoffrey Rotstein, CEO. "As a result, we are maintaining substantially lower traffic levels until we have better insight into the factors contributing to this issue. The Company is currently working diligently with the teams at Yahoo! in an effort to implement any necessary adjustments to this new marketplace."

"We have always been able to adapt quickly and positively to changes in the industry as a result of our intense focus on data and analytics. We intend to apply this same discipline to respond to these issues, as we continue to receive information from Yahoo! that will assist us to adapt our system for the new advertising marketplace," added Ted Hastings, President. "We intend to make whatever changes are required within our Company to ensure a fast and sustainable response to this new market".

The Company is still in the process of finalizing its annual financial information, but expects second half revenues to come in at the lower end of the guidance range previously provided. The lower end of the range is the direct result of the declining revenue per click experienced since mid-December. In addition, the Company expects that adjusted EBITDA for the second half of 2010 similarly would be at the lower end of the range and may be further impacted by one-time adjustments currently being evaluated. 

With respect to the impact on financial performance for 2011, no additional information can be provided until the situation has been clarified. The Company remains in discussions with Yahoo! and expects to issue further releases and updates to the market as it gains better visibility into the issues and the results of its ongoing efforts. 

About Cyberplex

Cyberplex Inc. ( is a North American leader in online publishing and customer acquisition strategies. The Company, through its subsidiaries, leverages over 300 proprietary web properties and its vast publisher network to efficiently connect advertisers to their most relevant online customers and prospects. By combining high quality publishing initiatives with efficient technology solutions and online marketing expertise, the Company is able to deliver the optimal targeted audience to online advertisers. Cyberplex delivers measurable results that improve advertiser ROI, monetize the value of online properties, and build targeted, loyal online audiences.

Forward-Looking Statements

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.

Contact Information