March 24, 2010 16:44 ET

Cyberplex Reports Fourth Quarter and 2009 Results

A year of accomplishments - record revenue and EBITDA

TORONTO, ONTARIO-- --(Marketwire - March 24, 2010) - Cyberplex Inc. (TSX:CX) a leader in advertising solutions, on-line customer acquisition strategies, and technology development, today announced its financial results for the fiscal year-ended and fourth quarter-ended December 31, 2009. Total revenue for the year was $110.4 million, an increase of 93% over the $57.3 million reported for 2008, with net income of $7.1 million in 2009 versus $5.8 million in 2008. Total revenue for the fourth quarter was $24.3 million, with gross profit totaling $6.8 million resulting in a gross margin of 28% and net income of $1.3 million.

Fourth Quarter Operational Highlights

  • Recognized as "Best Company of the Year" by The Canadian New Media Awards (CNMAs)
  • Expanded international client base, with international revenue accounting for over 27% of total revenue in the quarter
  • Awarded contracts for integrated online strategy, development of web properties and performance marketing services with leading brand advertisers, including Jaguar Canada; Agency of Record for Quest, a leader in the tele-personals industry; Knightsbridge, a leader in career and placement services; and Grand and Toy
  • Geoffrey Rotstein, Cyberplex CEO, selected to hold a seat on the advisory board of the Brand Protection Group, a newly formed organization with a mandate to promote and ensure enforcement of performance marketing guidelines for advertisers seeking to participate in the industry

"During the fourth quarter of 2009, we continued to strengthen our position in the performance marketing industry by delivering excellent results for our advertisers and attracting some of the most effective and targeted traffic sources for performance-based campaigns. Our commitment to quality was heightened in the quarter, as was our focus on effecting positive change for the industry, which we believe will benefit the Company and the future of the performance marketing industry as a whole" said Geoffrey Rotstein, President and Chief Executive Officer. "Throughout the quarter the Company made significant investments in technology and in its depth of operations. These investments led to the launch of our next generation CPA marketing platform, with features and capabilities beyond anything that we had been able to offer to our advertisers and publishers in the past."

During the quarter, CX Digital Media, the performance marketing division of Cyberplex, also focused aggressively on repositioning itself to work with top tier clients. As with any new growth industry, the transition from early adopters to more mainstream advertisers, and the resulting changes that are required, is a leap made by the industry leaders. In order to address some of the hurdles identified by big brand advertisers to adopt or increasing their participation in this progressive on line advertising model, we increased our focus on the quality of campaign leads and improved brand protection solutions. Overall, feedback from current and prospective advertisers and throughout the industry has been extremely positive.

Results for the Year Ended December 31, 2009

  • The Company generated record revenue of $110.4 million, an increase of 93% compared to $57.3 million generated in 2008
  • Earnings before amortization, interest, foreign exchange, stock compensation charges and income taxes for 2009 were $11.7 million compared to $4.9 million in 2008
  • Earnings per share of $0.11 with adjusted earnings per share at $0.19
  • Closed a $17.2 million public financing by way of a bought deal of common shares in June 2009
  • Enhanced social media targeting capabilities, an important strategic initiative, with the launch of PokerFace - a Facebook casual gaming application
  • Received several industry awards and accolades, including recognition from The Branham Group as one of the "Top 20 Movers and Shakers" and by Deloitte in their "Technology Fast 50™", as well as, by the "Canadian New Media Awards"

"We are very proud of our numerous accomplishments in 2009 and strongly believe that we have established a solid foundation for continued success" said Geoffrey Rotstein. "Our industry continues to adapt, as do the needs of our clients, particularly as companies recognize the necessity of a strong online presence in order to compete in today's market. The difficult economic environment during 2009 left many companies seeking more impactful ways to use their marketing budgets; this resulted in a growing interest in our performance-based advertising model. During this same period, we were able to solidify our role as a leading player in the performance marketing sector, while continuing to invest in our technology and operations to capitalize on new opportunities."

Conference Call Details

In conjunction with the release, Cyberplex will host a conference call on Wednesday, March 24, 2010 at 4:30 p.m. EST to discuss the financial results. To access the call, please dial 1-888-892-3255. Please call five minutes prior to the call. A replay of the conference call will be available as of 12:00 a.m. the same day, until midnight April 7, 2010. To access the replay dial 1-800-937-6305 followed by the pass code 261613.

About Cyberplex

Cyberplex Inc. ( is a leader in providing 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 16 years of experience serving Fortune 1000 clients including FTD, Vista Print, 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.

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.


  as at   as at
  December 31, 2009   December 31, 2008
  (unaudited)   (unaudited)
Current Assets:          
  Cash, cash equivalents and short-term investments $ 21,762,643   $ 5,364,384
  Accounts receivable, net of allowance for doubtful          
  accounts of $ 2,270,977 (2008 - $1,531,229)   9,930,149     14,079,236
  Prepaid expenses and other assets   3,303,819     668,503
    34,996,611     20,112,123
Capital assets   1,432,309     993,868
Intangible assets   287,500     -
Goodwill   14,095,708     13,936,813
Future tax assets   582,740     -
  $ 51,394,868   $ 35,042,804
Current Liabilities:          
  Bank indebtedness $ -   $ 3,535,264
  Accounts payable and accrued liabilities   4,270,080     11,529,047
  Unearned revenue   668,255     153,813
  Deferred lease inducements   106,618     62,323
  Income taxes payable   631,465     -
    5,676,418     15,280,447
Deferred lease inducements   156,119     153,774
Shareholders' equity   45,562,331     19,608,583
  $ 51,394,868   $ 35,042,804
  Three months period ended   Year ended  
  December 31, 2009   December 31, 2008   December 31, 2009   December 31, 2008  
  (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Revenue $ 24,347,585   $ 28,893,768   $ 110,411,215   $ 57,279,766  
Cost of revenue   17,512,801     18,577,022     78,070,649     37,488,239  
    6,834,784     10,316,746     32,340,566     19,791,527  
  Sales and marketing   2,313,821     4,933,990     12,907,348     10,353,421  
  General and administrative   2,554,171     1,683,438     8,450,937     4,661,071  
  Foreign exchange (gain) loss   975,472     (1,293,444 )   3,423,700     (1,539,548 )
Income before the undernoted   991,320     4,992,762     7,558,581     6,316,583  
  Amortization of capital assets   108,561     80,692     392,641     310,790  
  Amortization of intangible assets   12,500     4,814     12,500     187,157  
Income from operations   870,259     4,907,256     7,153,440     5,818,636  
  Interest expense   (852 )   (27,599 )   (75,370 )   (76,182 )
  Interest income   25,834     535     48,522     29,285  
  Gain on sale of investment   53,259     -     53,259     -  
Income before income taxes   948,500     4,880,192     7,179,851     5,771,739  
Income taxes (recovery)   (306,226 )   -     78,231     -  
Net income   1,254,726     4,880,192     7,101,620     5,771,739  
Unrealized gain (loss) on available- for -sale-securities   (189,233 )   -     119,447     -  
Comprehensive income $ 1,065,493   $ 4,880,192   $ 7,221,067   $ 5,771,739  
Income per share:                        
  Basic $ 0.02   $ 0.09   $ 0.11   $ 0.11  
  Diluted   0.02     0.09     0.11     0.11  
Weighted average number of common shares used in income per share:                        
  Basic   68,450,054     53,621,060     62,680,694     51,525,909  
  Diluted   70,380,964     56,734,110     64,905,988     52,859,402  

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