Cyberplex Revenue Increases 280 Percent



    TORONTO, Nov. 13 /CNW/ - Cyberplex Inc. (TSX:CX) a leading technology
firm focused on providing web advertising solutions and on-line customer
acquisition strategies, today announced its financial results for the third
quarter ended September 30, 2007.
    Revenue for the three month period ended September 30, 2007 was
$4.72 million up 280% from the $1.24 million generated a year earlier and an
increase of 6% from the $4.44 million recognized in the previous quarter. On
an operational basis, the loss before amortization and interest income for the
quarter was $145,000, after accounting for a foreign exchange loss of $210,000
and one-time non-recurring stock compensation expense of $103,000. This figure
compares to a $114,000 operating loss for the same period a year earlier and a
loss of $4,000 generated in the previous quarter.
    Gross margin for the quarter was 41%, consistent with the 42% recorded in
the previous quarter and the Company's top five clients accounted for
approximately 30% of the quarterly revenue. The company finished the quarter
with cash and cash equivalents of $1.27 million.

    
    Exciting developments during the quarter included:

    1.  Completion of the acquisition of Eidenai Innovation Inc.
    2.  Addition of over 50 new advertising campaigns initiated through the
        affiliate network
    3.  Increase in backlog of over 100% for the services organization
    

    As a result of the Eidenai acquisition, Cyberplex will benefit from the
additional scale to the organization, the new client relationships that can be
developed and the synergies that will result from combining the two
organizations. These benefits, combined with the Company's proprietary
advertising platform, which focuses on performance based customer acquisition,
will create a mutually reinforcing value proposition as the Company continues
its aggressive growth strategy and continues to bring strategic offerings to
its clients.
    "We are very pleased with our performance this quarter and the overall
growth for the first 3 quarters of 2007," said Geoffrey Rotstein, chief
executive officer of Cyberplex. "Our increased investments in sales and
marketing, the acquisition of Eidenai, and the momentum that we are
experiencing in our advertising division, will pave the way for an exciting
end to 2007 and into 2008."

    About Cyberplex

    Cyberplex Inc. (www.cyberplex.com) is a leading technology firm focused
on providing web advertising solutions and on-line customer acquisition
strategies, as well as application expertise and web-based solutions to its
clients. The Company, through its subsidiaries, has developed a proprietary
network of affiliates which combined with advertising relationships and teams
of technology consultants and design, usability and solutions specialists,
assist customers with all aspects of their web-based applications as they
design, develop and promote solutions that deliver results. With over 12 years
of experience serving Fortune 1000 clients including Thomson, Atlantic Lottery
Corporation, Xerox, Advanced Micro Devices (AMD), 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.

    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.


    
                               CYBERPLEX INC.
              CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

                          Three Month Period Ended   Nine Month Period Ended
                          ------------------------- -------------------------
                            September    September    September    September
                             30, 2007     30, 2006     30, 2007     30, 2006
                           (unaudited)  (unaudited)  (unaudited)  (unaudited)
                          ------------ ------------ ------------ ------------

    Revenue               $ 4,715,515  $ 1,240,947  $12,189,994  $ 3,751,135

    Cost of sales           2,771,737      608,960    7,302,318    1,937,808
                          ------------ ------------ ------------ ------------

    Gross Profit            1,943,778      631,987    4,887,676    1,813,327

    Expenses
      Sales and marketing
       expenses             1,090,959      230,908    2,567,757      596,075
      General and admin-
       istrative expenses     998,131      515,484    2,621,992    1,517,055
                          ------------ ------------ ------------ ------------

                            2,089,090      746,392    5,189,750    2,113,130

    Loss before the
     undernoted              (145,312)    (114,405)    (302,074)    (299,803)

    Amortization of
     capital assets            72,151       68,153      188,426      200,977
    Amortization of
     Intangible assets        107,220       40,360      302,442       50,360
                          ------------ ------------ ------------ ------------


    Loss from operations     (324,683)    (222,918)    (792,942)    (551,140)

    Interest income             8,850       76,341       50,743      172,320

    Loss before income
     taxes                   (315,833)    (146,577)    (742,199)    (378,820)

    Income tax recovery
      Current                       -            -            -            -
      Future                   35,257            -      105,771            -

                          ------------ ------------ ------------ ------------
    Net income (loss)     $  (280,576) $  (146,577) $  (636,428) $  (378,820)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Other comprehensive
     Income (loss)
      Unrealized gain
       on marketable
       securities              (2,969)           -         (753)           -
                          ------------ ------------ ------------ ------------

    Total comprehensive
     income                  (283,546)    (146,577)    (637,182)    (378,820)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Deficit - beginning
     of the period         (1,494,881) (65,078,989)  (1,139,029) (64,846,746)

    Reduction in stated
     capital                            64,997,231                64,997,231

    Deficit - end of
     period               $(1,778,427) $  (228,335) $(1,776,211) $  (228,335)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Weighted average
     number of common
     shares - basic        42,717,839   32,648,219   42,297,860   32,542,820

    Weighted average
     number of common
     shares - diluted      42,717,839   32,648,219   42,297,860   32,542,820

    Basic earnings (loss)
     per share            $     (0.01) $     (0.00) $     (0.02) $     (0.01)

    Diluted earnings
     (loss) per share     $     (0.01) $     (0.00) $     (0.02) $     (0.01)
    





For further information:

For further information: investor@cyberplex.com

Organization Profile

CYBERPLEX INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890