ENGINEERING.com Incorporated
TSX VENTURE : EGN

ENGINEERING.com Incorporated

August 21, 2012 14:30 ET

ENGINEERING.com Incorporated Announces Second Quarter 2012 Results

TORONTO, ONTARIO--(Marketwire - Aug. 21, 2012) - ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com online resource for engineers today announced its unaudited financial results for the second quarter ended June 30, 2012.

Revenue was $471,625 for the three months ended June 30, 2012 and $1,053,590 for the year to date, compared to revenue of $370,682 for the second quarter and $726,241 for the first half of 2011. These results indicate revenue growth of 27% in the second quarter and 45% in the first half of 2012 as compared to 2011.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($13,118) or $0.00 per Common Share for the second quarter of 2012 compared with an operating loss of ($67,213) or $0.00 per Common Share for the three month period ended June 30, 2011. The operating expenses in the latest quarter were $293,246, up from $275,400 in the second quarter a year earlier.

"During the second quarter, ENGINEERING.com launched a new micro-site dedicated to the topic of Mobile Device Design. Within this micro-site industry analysts present a technical view of the "guts behind the gadgets," said John Hayes, President of ENGINEERING.com. "Like the recently launched 3D Printing micro-site, this new area attracts a high value audience by matching leading industry analysts with the broad reach of ENGINEERING.com."

As at June 30, 2012, the Company had a cash balance of $411,444 compared to a cash balance of $259,014 as at December 31, 2011.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE:EGN) inspires, informs and entertains a worldwide audience of engineers through the www.ENGINEERING.com web site, mobile and social distribution channels. ENGINEERING.com offers marketing services to manufacturers, technology inventors 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 International Financial Reporting Standards 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 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.

STATEMENTS OF FINANCIAL POSITION
Expressed in Canadian Dollars
June 30, 2012 December 31, 2011
ASSETS
CURRENT ASSETS
Cash $ 411,444 $ 259,014
Accounts receivable 228,090 351,537
Prepaids expenses and deposits 34,695 21,383
TOTAL CURRENT ASSETS 674,229 631,934
NON-CURRENT ASSETS
Property and equipment 11,441 11,818
Intangible assets 330,088 325,020
TOTAL NON-CURRENT ASSETS 341,529 336,838
TOTAL ASSETS $ 1,015,758 $ 968,772
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $ 562,159 $ 465,785
Deferred revenue 122,834 156,922
TOTAL LIABILITIES 684,993 622,707
SHAREHOLDER'S EQUITY
Share capital 15,450,966 15,450,966
Contributed surplus 509,593 497,899
Deficit (15,629,794 ) (15,602,800 )
TOTAL SHAREHOLDERS EQUITY 330,765 346,065
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 1,015,758 $ 968,772
STATEMENTS OF CHANGE IN SHAREHOLDERS EQUITY
Expressed in Canadian Dollars
Number of Common Shares Share Capital Contributed Surplus Deficit Total
At January 1, 2011 36,870,623 $ 15,113,752 $ 472,843 $ (15,396,019 ) $ 190,576
Net loss for the period (142,983 ) (142,983 )
Stock based
compensation
11,003 11,003
At June 30, 2011 36,870,623 15,113,752 483,846 (15,539,002 ) 58,596
At December 31, 2011 43,870,623 $ 15,450,966 $ 497,899 $ (15,602,800 ) $ 346,065
Net loss for the period (26,994 ) (26,994 )
Stock based
compensation
11,694 11,694
At June 30, 2012 43,870,623 $ 15,450,966 $ 509,593 $ (15,629,794 ) $ 330,765
STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
Expressed in Canadian Dollars
Three months ended Six months ended
June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011
REVENUE $ 471,625 $ 370,682 $ 1,053,590 $ 726,241
COST OF SALES 191,497 162,495 470,174 320,790
GROSS PROFIT 280,128 208,187 583,416 405,451
OPERATING EXPENSES
Salaries and benefits 146,724 138,085 318,218 276,983
Marketing expenses 25,904 21,489 49,664 44,171
Development costs 48,423 49,946 94,705 97,126
General and administrative 72,195 65,880 131,583 112,782
TOTAL OPERATING EXPENSES 293,246 275,400 594,170 531,062
INCOME (LOSS) BEFORE UNDERNOTED ITEMS: (13,118 ) (67,213 ) (10,754 ) (125,611 )
Stock based compensation (5,646 ) (5,201 ) (11,694 ) (11,003 )
Amortization expense (2,182 ) (3,045 ) (4,546 ) (6,369 )
NET INCOME (LOSS) & COMPREHENSIVE INCOME $ (20,946 ) $ (75,459 ) $ (26,994 ) $ (142,983 )
Earnings (Loss) Per Share
Basic $ 0.00 $ 0.00 $ 0.00 $ 0.00
Diluted $ 0.00 $ 0.00 $ 0.00 $ 0.00
Weighted average number of common shares
(Basic and Diluted) 43,870,623 36,870,623 43,870,623 36,870,623
STATEMENTS OF CASH FLOWS
Expressed in Canadian Dollars
Three months ended Six months ended
June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011
OPERATING ACTIVITIES
Net Income (Loss) $ (20,946 ) $ (75,459 ) $ (26,994 ) $ (142,983 )
Add items not affecting cash
Stock based compensation 5,646 5,201 11,694 11,003
Amortization 2,182 3,045 4,546 6,369
Changes in operating assets and liabilities other than cash 99,280 (40,093 ) 172,422 83,340
CASH FLOWS FROM OPERATING ACTIVITIES 86,162 (107,306 ) 161,668 (42,271 )
INVESTING ACTIVITIES
Additions to property and equipment - (487 ) (4,169 ) (1,033 )
Additions to intangible assets (1,775 ) (1,284 ) (5,069 ) (4,305 )
CASH FLOWS FROM INVESTING ACTIVITIES (1,775 ) (1,771 ) (9,238 ) (5,338 )
INCREASE (DECREASE) IN CASH 84,387 (109,077 ) 152,430 (47,609 )
CASH, Beginning of period 327,057 139,712 259,014 78,244
CASH, End of period $ 411,444 $ 30,635 $ 411,444 $ 30,635

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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