Cyberplex Announces Fourth Quarter and Year-End Financial Results for 2006



    TORONTO, March 22 /CNW/ - Cyberplex Inc. (TSX : CX), announced its
financial results for the fourth quarter and the fiscal year ended
December 31, 2006.

    Business highlights for 2006:

    
    -   Acquisition of WebAffairs Inc. which enabled the Company to service
        small and medium sized organizations with leading creative
        technologies and proprietary solutions
    -   Secured a private placement of $3.25 million which further
        strengthened the Company's balance sheet
    -   Elimination of a $13.5 million lease obligation by negotiating a
        termination agreement for the leased facility in Toronto
    -   Acquisition of Incentaclick Media Group Inc. which diversified the
        Company's business model into on-line advertising, creating a
        different and more scaleable revenue model leveraging one of the
        largest growth areas of the Internet
    

    Fourth quarter revenue of $1.58 million was an increase of 27% over the
$1.24 million generated in the previous quarter and an increase of 14% over
the $1.39 million recorded during the same period a year ago. The revenue
increase is attributed to consistent revenue performance from the technology
services division and the incremental revenue relating to acquisition of
Incentaclick, completed at the beginning of December. The loss before
amortization and interest income for the fourth quarter was $163,000, higher
than the loss of $114,000 realized in the previous quarter and a significant
improvement over the $647,000 in losses generated during the same period a
year earlier.
    Gross margin for the quarter was 40%, down from 51% generated in the
previous quarter. The significant change in gross margin resulted from the
inclusion of Incentaclick, as the margin from the services business was
relatively consistent at 47%. The largest five accounts in the quarter
accounted for approximately 61% of revenue and 32% of the Company's revenue
was generated from clients located in the United States.
    Revenue for the year ended December 31, 2006 was $5.33 million, down 26%
from the $7.24 million recorded during 2005. The loss before amortization and
interest income was $463,000 compared with a loss of $628,000 generated a year
earlier. The net loss for the year, after accounting for an additional
$784,000 of accelerated amortization due to the relocation of our Toronto
offices, was $1.39 million, or $0.03 per share.
    "2006 was an important year for Cyberplex as we continued to transition
the organization," said Geoffrey Rotstein, President and CEO of Cyberplex. "By
completing two very strategic acquisitions, raising $3.25 million in capital
and reducing our long term commitments by over $13.5 million, we have
positioned ourselves very well for 2007. Our balance sheet remains strong,
with over $3.4 million in cash and no debt, and our focus continues to be on
growing the business profitably. Management is committed to building a
stronger company, both through organic growth and selected acquisitions that
will deliver value to its shareholders."

    About Cyberplex

    Cyberplex Inc. (www.cyberplex.com) is a technology firm focused on
providing application expertise and web based solutions to its clients. The
Company's specialized team of technology consultants and design, usability and
solution specialists assist clients with all aspects of their web based
applications as they design, develop and promote solutions that improve
business. With over 11 years of experience serving Fortune 1000 clients
including Thomson, Atlantic Lottery Corporation, Advanced Micro Devices (AMD),
Bank of Montreal (BMO), Scotiabank, SunTrust Banks and the Royal Bank of
Canada, Cyberplex is frequently the firm of choice for business leaders
looking for reliable solutions. Cyberplex serves clients across Canada and the
US, and is headquartered in Toronto, Canada with offices in Arlington, Austin
and Halifax.

    
                               CYBERPLEX INC.
                         CONSOLIDATED BALANCE SHEETS

                                                      as at         as at
                                                   December 31,  December 31,
                                                       2006          2005
                                                  ------------- -------------
                                                   (unaudited)   (unaudited)

    ASSETS

    Current Assets:
      Cash, cash equivalents, and short term
       investments                                $  3,435,405  $  5,284,430
      Accounts receivable, net of allowance for
       doubtful accounts of $272,665
       (December 31, 2005 - $92,575)                 1,340,884     1,461,381
      Prepaid expenses and sundry assets               500,254       160,587
                                                  ------------- -------------
                                                     5,276,543     6,906,398

    Capital assets                                     841,271     1,478,489
    Intangible assets                                  490,469             -
    Goodwill                                         3,851,507             -

                                                  ------------- -------------
    TOTAL ASSETS                                  $ 10,459,790  $  8,384,887
                                                  ------------- -------------
                                                  ------------- -------------

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current Liabilities:
      Accounts payable and accrued liabilities    $  1,717,339  $  1,249,241
      Short term note payable                          143,566             -
      Unearned revenue                                  36,742         8,967
      Future income taxes                              137,347             -
      Deferred lease inducements                        45,383             -
                                                  ------------- -------------
                                                     2,080,377     1,258,208

    Future income taxes                                 39,842        39,000
    Deferred lease inducements                         198,484             -
    Other long-term liabilities                              -     1,292,798
                                                  ------------- -------------
                                                       238,326     1,331,798

    SHAREHOLDERS' EQUITY                             8,141,087     5,794,881

                                                  ------------- -------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $ 10,459,790  $  8,384,887
                                                  ------------- -------------
                                                  ------------- -------------



                               CYBERPLEX INC.
              CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

                        Three Month Period Ended   Twelve Month Period Ended
                      --------------------------- ---------------------------
                       December 31,  December 31,  December 31,  December 31,
                           2006          2005          2006          2005
                       (unaudited)   (unaudited)   (unaudited)   (unaudited)
                      ------------- ------------- ------------- -------------

    Revenue           $  1,582,086  $  1,388,719  $  5,333,221  $  7,241,945

    Cost of sales          941,725       811,586     2,879,533     4,002,367
                      ------------- ------------- ------------- -------------

    Gross profit           640,361       577,133     2,453,688     3,239,578

      Sales and
       marketing
       expenses            279,287       158,868       875,362       736,089
      General and
       administrative
       expenses            524,126     1,065,018     2,041,180     3,131,616
                      ------------- ------------- ------------- -------------
                           803,413     1,223,886     2,916,542     3,867,705

    Loss before
     interest,
     amortizations
     and other items      (163,053)     (646,753)     (462,854)     (628,127)

      Interest income      (71,303)      (45,056)     (244,498)     (136,047)
      Interest expense       3,425            17         4,300         3,840
      Amortization of
       capital assets      853,636        95,100     1,054,613       309,219
      Amortization of
       intangible
       assets               59,277             -       109,637             -
      Goodwill
       impairment                -       449,136             -       449,136
                      ------------- ------------- ------------- -------------

    Loss before
     income taxes       (1,008,088)   (1,145,950)   (1,386,906)   (1,254,275)

    Income Taxes
     (recovery)
      Current              (20,618)            -       (20,618)            -
      Future               (76,775)     (123,019)      (76,775)     (123,019)

                      ------------- ------------- ------------- -------------
    Net loss          $   (910,695) $ (1,022,931) $ (1,289,513) $ (1,131,256)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Deficit -
     beginning of
     the period           (228,335)  (63,823,816)  (64,846,746)  (63,715,490)

    Deficit
     reduction                   -             -    64,997,231              -
                      ------------- ------------- ------------- -------------

    Deficit - end of
     period           $ (1,139,029) $(64,846,746) $ (1,139,029) $(64,846,746)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Weighted average
     number of common
     shares - basic     41,816,260    32,436,249    37,183,511    32,361,023

    Weighted average
     number of common
     shares - diluted   41,816,260    32,436,249    37,183,511    32,361,023

    Basic earnings
     (loss) per share $      (0.02) $      (0.03) $      (0.03) $      (0.03)

    Diluted earnings
     (loss) per share $      (0.02) $      (0.03) $      (0.03) $      (0.03)
    




For further information:

For further information: investor@cyberplex.com

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CYBERPLEX INC.

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