ENGINEERING.com Incorporated
TSX VENTURE : EGN

ENGINEERING.com Incorporated

June 17, 2011 14:35 ET

ENGINEERING.com Incorporated Announces First Quarter Results

TORONTO, ONTARIO--(Marketwire - June 17, 2011) - ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com online resource for engineers today announced its unaudited financial results for the first quarter ended March 31, 2011.

Beginning with the first quarter of 2011, Engineering.com reported its financial results in accordance with International Financial Reporting Standards (IFRS), as required for public companies in Canada. Previously, the Company reported its financial results under Canadian Generally Accepted Accounting Standards (GAAP). Financial results for the corresponding period in 2010 have been restated to reflect the adoption of IFRS.

ENGINEERING.com revenue was $355,559 for the three month ended March 31, 2011, compared to revenue of $317,771 for the first quarter in 2010. The net loss for the three months ended March 31, 2011, totaled ($67,524) and ($0.00) per Common Share compared with a net loss of ($120,906) and ($0.00) for the same period a year ago. The increase in revenue is the result of increasing software and internet advertising sales.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($58,398) or ($0.00) per Common Share for the first quarter of 2011 compared with a operating loss of ($67,718) or ($0.00) per Common Share for the three month period ended December 31, 2010. The operating expenses in the latest period were $255,662, down from $272,124 in the first quarter a year earlier. The reduction in operating expense is the result of lower administrative expenses.

"During the first quarter of 2011 we introduced new digital media offerings for our advertisers and audience," said John Hayes, President of ENGINEERING.com. "Advertisers are discovering that sponsored video series like the Product Design Show and Some Assembly Required represent a powerful way for them to connect with engineers."

As at March 31, 2011, the Company had a cash balance of $139,712 compared to a cash balance of $78,244 as at December 31, 2010. This cash balance is relatively small when compared to the Company's ongoing obligations and in light of continued operating losses. The Company is undertaking efforts to raise capital to fund the Company's operations, but cannot predict the outcome of these efforts at this time. Readers are referred to page 9 of the Company's 2010 Annual Management Discussion & Analysis under the heading, "Present Status and Risk Factors" as filed on April 28, 2011.

Effective August 25 2011 the Company listing on the TSX Venture exchange will move from Tier 1 to Tier 2.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE:EGN) is the developer-owner of the www.ENGINEERING.com Web site and business. ENGINEERING.com offers marketing and lead generation 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, 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 IFRS 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 IFRS 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. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. 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 INC
Condensed Interim Statements of Financial Position
(In Canadian dollars, Unaudited)
March 31,December 31,January 1,
201120102010
$$$
ASSETS
CURRENT ASSETS
Cash139,71278,244106,118
Accounts receivable201,468316,302291,761
Prepaid expenses and deposits11,67213,89530,391
TOTAL CURRENT ASSETS352,852408,441428,270
PROPERTY AND EQUIPMENT17,94920,72727,916
INTANGIBLE ASSETS319,084316,063412,993
TOTAL ASSETS689,885745,231869,179
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities487,592489,015707,147
Deferred revenue73,43865,64046,614
Promissory note – short-term--24,999
TOTAL LIABILITIES561,030554,655778,760
SHAREHOLDERS' EQUITY
Share capital15,113,75215,113,75215,113,752
Contributed surplus478,646472,843445,548
Deficit(15,463,543)(15,396,019)(15,468,881)
TOTAL SHAREHOLDERS' EQUITY128,855190,57690,419
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY689,885745,231869,179
ENGINEERING.COM INC
Condensed Interim Statements of Loss Comprehensive Loss
(In Canadian dollars, Unaudited)
March 31,March 31,
20112010
$$
REVENUE355,559317,771
COST OF SALES158,295110,365
GROSS PROFIT197,264207,406
OPERATING EXPENSES
Salaries and benefits138,898134,018
Marketing expenses22,68219,797
Development costs47,18050,083
General and administrative46,90268,226
255,662272,124
INCOME (LOSS) BEFORE UNDERNOTED ITEMS:(58,398)(64,718)
Stock based compensation(5,802)(6,615)
Amortization expense(3,324)(49,573)
NET LOSS AND COMPREHENSIVE LOSS(67,524)(120,906)
Loss per share
Basic0.000.00
Diluted0.000.00
Weighted average number of Common Shares (basic and diluted)36,870,62336,870,623
ENGINEERING.COM INC
Condensed Statements of Changes in Shareholder's Equity
(In Canadian dollars, Unaudited)
Number of Common SharesShare CapitalContributed SurplusDeficitTotal
At January 1, 201038,870,62315,113,752445,548(15,468,881)90,419
Loss for the period---(120,906)(120,906)
Stock based compensation--6,615-6,615
At March 31, 201038,870,62315,113,752452,163(15,589,787)(23,872)
At December 31, 201038,870,62315,113,752472,843(15,396,019)190,576
Loss for the period---(67,524)(67,524)
Stock based compensation--5,803-5,803
At March 31, 201138,870,62315,113,752478,646(15,463,543)128,855
ENGINEERING.COM INC
Condensed Interim Statements of Cash Flows
(In Canadian dollars, Unaudited)
March 31,March 31,
20112010
$$
OPERATING ACTIVITIES
Net loss(67,524)(120,906)
Add items not affecting cash:
Stock based compensation5,8026,615
Amortization3,32449,573
Changes in operating assets and liabilities other than cash123,433121,074
CASH FLOWS FROM OPERATING ACTIVITIES65,03556,356
FINANCING ACTIVITIES
Promissory notes-(8,964)
CASH FLOWS FROM FINANCING ACTIVITIES-(8,964)
INVESTING ACTIVITIES
Additions to property and equipment(546)(5,489)
Additions to intangible assets(3,021)-
CASH FLOWS FROM INVESTING ACTIVITIES(3,567)(5,489)
INCREASE IN CASH61,46841,903
CASH, beginning of period78,244106,118
CASH, end of period139,712148,017

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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