MONTREAL, Aug. 29 /CNW/ - Aptilon Corporation ("Aptilon" or the
"Company") (TSX-V: APZ), a leader in online marketing to physicians, today
announced its financial results for the three and six months ended June 30,
2008. Financial references are in CDN dollars unless otherwise indicated.
Complete financial statements and MD&A are available on SEDAR at
Q2 08 Summary
- Revenues reached $1.65 million, compared to $2.1 million for Q2 2007
- Gross profit totaled $931,000 compared to $1,117,714 in Q2 2007
- Net loss totaled ($2.1 million) compared to ($1.1 million) in Q2 2007
- Signed agreements with two of the world's top 10 pharmaceutical
companies for AxcelRx Live video detailing service
- Announced partnership with Skura to offer pharma companies Designer
Plus, a tool that will improve the sales and marketing effectiveness
of sales representatives
"2008 has turned out to be a transitional year that has seen the
replacement of small client and project revenue with larger enterprise
agreements from top US pharmaceutical companies," said Roger Korman, Chairman
and CEO of Aptilon. "In 2007, single brand and small client projects were
completed and recognized within the year. We are now working with six of the
top 12 US pharmaceutical companies, and have achieved a 73% increase in brands
committed to our AxcelRxSM solution. Despite the longer time required to set
up large-scale, multi-brand programs, by focusing on these multi-brand
enterprise agreements with top US pharmaceutical companies, we are securing a
long-term source of recurring revenue and future growth. We expect to see
measurable results of these efforts in the coming quarters."
Dr. Korman added, "Looking forward, we will continue to focus on
broadening access to high profile US physicians, which is the foundation of
our business model and our competitive advantage. With physicians abandoning
traditional channels in favor of web-based learning, the industry is
transforming its approach to professional sales and marketing. We believe our
three-prong growth strategy: build, buy, and license, will enable us to
quickly capitalize on this trend. We will continue to build relationships with
top US pharma companies and increase brand mandates; invest in acquisitions
that increase our access to US physicians; and, through licensing and
partnership agreements, extend our distribution capabilities."
For the second quarter of 2008 revenues decreased to $1,650,977 compared
to $2,102,184 for the same period a year ago. Revenues for the first half of
2008 totaled $3,674,864, compared to $4,354,609 for the first half of 2007.
Decreased revenues in both periods reflect the transition of project revenue
from smaller Canadian customers to larger enterprise agreements from top US
pharmaceutical companies. Enterprise agreements require lengthier marketing
planning and implementation which resulted in a delay in campaign launches and
revenue recognition during the quarter.
Gross profit for the three-month period ended June 30, 2008 was $931,052
or 56% of revenue compared to $1,117,714 or 53% of revenue for the three
months ended June 30, 2007. For the six months ended June 30, 2008 gross
profit increased to $2,282,794 or 62% of revenue, compared to 2,188,830 or 50%
of revenue for the same period in 2007. Gross margins for both periods
increased mainly as a result of a 27% reduction in cost of revenues, offset by
lower revenues generated in 2008.
General and administrative ("G&A") expenses for the second quarter of
2008 decreased by 4% to $674, 430 compared to $703,092 in the second quarter
of 2007. G&A expenses for the first six months of 2008 totaled $1,287,255,
compared to $1,310,049 in same period of 2007. G&A expenses consist primarily
of salaries, personnel expenses of executive management and administrative
personnel, and related office, premises, and other infrastructure support
Selling and promotion expenses, totaled $1,465,497 for the second quarter
of 2008, compared to $993,618 in the second quarter of 2007. For the six-month
period ended June 30, 2008, selling and promotion expenses totaled $2,867,908,
compared to $2,036,777 in the same period of 2007. Selling and promotion
expenses consist primarily of salaries (including commissions and bonuses) and
related costs associated directly to selling and marketing activities, such as
traveling and lodging expenses.
Net loss for the three months ended June 30, 2008, was ($2,091,271) or
($0.0124) per share, compared to ($1,070,192) or ($0.0076) per share for the
comparable period a year ago. Net loss for the first half of 2008 was
($3,490,582) or ($0.0207) per share, compared to ($1,915,992) or ($0.0137) per
share in the same period a year ago. The Company has implemented a plan to
streamline operations and reduce expenses with the goal to achieve
profitability in 2009.
As at June 30, 2008, the Company had working capital of $3,989,968,
including cash and cash equivalents of $2,745,947 compared to $8,872,196,
including cash and cash equivalents of $8,085,215 at December 31, 2007.
The Company had 190,608, 522 common shares outstanding (fully diluted) at
June 30, 2008.
About Aptilon Corporation
Aptilon enables pharmaceutical, biotech and medical device companies to
effectively reach and interact with physicians via the Internet through its
innovative AxcelRx(SM) live video detailing platform which hosts promotional,
peer selling and sales and marketing programs. Top US pharmaceutical companies
have adopted Aptilon's AxcelRx(SM) solution for their sales representatives to
reach leading physicians on-line. Aptilon provides the necessary
infrastructure for pharmaceutical companies to build physician awareness,
understanding, and product preference during all stages of a product's life
cycle; from pre-launch education through end stage support. For more
information, visit www.aptilon.com.
This news release contains forward-looking information. These statements
relate to future events or future performance and reflect management's current
expectations and assumptions. Such forward-looking statements reflect
management's current beliefs and are based on information currently available
to management of Aptilon. A number of factors could cause actual events,
performance or results to differ materially from the events performance and
results discussed in the forward-looking statements. These forward-looking
statements are made as of the date hereof and Aptilon does not assume any
obligation to update or revise them to reflect new events or circumstances.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Roger Korman, Aptilon Corporation, Chairman and
CEO, Tel: 1-888-544-8866, Email: email@example.com; Arianna Vanin, The
Equicom Group, Investor Relations, Tel: (514) 844-4680, Email: