Foundation Set for Profitable Growth
MONTREAL, April 30 /CNW/ - Aptilon Corporation (the "Corporation") (TSX
Venture Exchange: APZ), a leader in providing pharmaceutical companies with
online sales channels to physicians, today announced its financial results for
the year ended December 31, 2008. Financial references are in CDN dollars.
Complete financial statements and MD&A are available on SEDAR at
- Revenue for 2008 increased to $8.0 million, or 3%, from $7.8 million
- Gross margin for 2008 increased 62% to $5.0 million from $3.1 million
- Revenue for the fourth quarter of 2008 increased to $2.7 million, or
86%, over the same period in 2007
- Net loss during the fourth quarter decreased 72% to $846,000
- Net loss for 2008 totaled $ 5.7 million compared to $ 6.2 million in
- Renewed contracts for 2009 with its existing top ten US
pharmaceutical clients for an approximate total of $7.5 million,
successfully moving several clients from first stage engagements to
- Acquired Tinderbox Partners Inc., which operates Allied Health
Partners, thereby expanding pharmaceutical company access to high
profile US physicians through Aptilon's ReachNet(SM), an extensive
network of partner and company-owned websites
- Established a partnership with Skura to offer Designer Plus,
integrating its Closed Loop Marketing technology and Aptilon's live
video detailing platform to enhance sales representatives' face-to-
face interactions with physicians and increase the number of paid
online interactions with physicians
- Entered into a strategic partnership with Triple-i, a provider of
secure online ordering and drug sample fulfillment services for
pharmaceutical companies, broadening Aptilon's services, online
network coverage and increasing the volume of pharma-sponsored
revenue generating transactions
- Released AxcelRx(SM) RepCentral, the latest version of its award-
winning live video detailing platform that enables pharmaceutical
sales representatives to provide live education to key physicians at
a time and place convenient for them, typically in their homes during
nights and weekends
"Fiscal 2008 was the watershed year in our Company's advancement," said
Chairman and CEO Dr. Roger Korman. "In terms of organic growth, our fourth
quarter results were the best in our history, continuing the upward trend in
our performance and pointing the way to our future. We have successfully
negotiated the transition from starter projects on a limited software platform
to major, ongoing work with top US pharmaceutical companies based on the
leading technology in our field. Capitalizing on new distribution channels for
our products and services, we have expanded partnerships with major
pharmaceutical marketing companies who serve top US clients. This lays the
foundation for further building our roster of pharmaceutical clients and
brands, targeting an increased number of physicians for advertising and
learning programs, and increasing the number of revenue generating
pharma-physician interactions in the year ahead," he added.
Financial Review 2008
For the year ended December 31, 2008, revenue increased 3% to $8.0
million compared to $7.8 million in 2007.
Gross margin for 2008 was $5.0 million compared to $3.1 million in 2007.
Expressed as a percentage of revenue, gross margin increased to 63% in 2008
from 40% in 2007 mainly due to the acquisition of Tinderbox Partners Inc.
General and administrative ("G&A") expenses for 2008 were $3.1 million or
39% of revenue, compared to $3.2 million or 41% of revenue in 2007. G&A
expenses consist primarily of salaries and benefits for executive management
and administrative personnel; related office premises; and other
infrastructure support costs. Stock-based compensation of $431,605 ($420,137
in 2007) is also included in G&A.
Sales and marketing expenses for 2008 increased to $5.4 million compared
to $4.8 million in 2007 in order to launch the AxcelRx(SM) RepCentral platform
and win new enterprise-wide agreements. Sales and marketing expenses consist
primarily of salaries (including commissions and bonuses) and related costs
associated directly to sales and promotion activities.
Net loss for the year ended December 31, 2008 was $5.7 million or $0.03
per share, compared to $6.2 million or $0.04 per share in 2007 as the result
of operating efficiencies achieved in the project management of follow-on
projects from new clients.
As at December 31, 2008, the Company had working capital of $2.4 million
including cash and cash equivalents of $1.3 million compared to $8.9 million,
including cash and cash equivalents of $7.9 million, at December 31, 2007 as
the result of the continued development of the AxcelRx(SM) platform and the
initiative to renew clients to ongoing projects.
The Company had 186,948,944 common shares outstanding (fully diluted) at
December 31, 2008.
Financial Review Fourth Quarter 2008
Revenue for the fourth quarter of 2008 totalled $2.7 million, an increase
of 86% from $1.5 million in the fourth quarter of 2007 and 62% from $1.7
million in the third quarter of 2008.
The gross margin of $1.7 million in the fourth quarter represented 62% of
revenue, in line with the first three quarters of the year.
G&A in the fourth quarter of 2008 decreased 17% from the same period in
2007, from $1.1 million to $0.89 million. Sales and marketing expenses also
decreased 26%, from $1.6 million in the fourth quarter of 2007 to $1.2 million
in the fourth quarter of 2008, due to reductions in sales and marketing
expenses consistent with the successful signing of follow-on projects from new
The trend in reducing the net loss from $2.1 million in the second
quarter, to $1.4 million in the third quarter, and $0.86 million in the fourth
quarter, which is a 72% decrease over the 4th quarter 2007, reflects the
ongoing success in resigning clients to larger projects and implementing
operating efficiencies in managing them.
Business Priorities for 2009
Our primary 2009 objective is to continue the performance trend we
established in 2008 by achieving our three-fold approach of organic growth,
partnership alliances, and acquisitions that build our client base and the
number of brands marketed through our innovative AxcelRx(SM) Live video
detailing platform, and that increase the participation of health care
professionals in interactive events. Expert industry sources continue to
support Aptilon's strategy of offering a multichannel solution to health care
practitioner education that meets the needs of the pharmaceutical industry.
About Aptilon Corporation
Aptilon enables pharmaceutical, biotech and medical device companies to
effectively reach and interact with more than 450,000 US physicians via the
Internet through its innovative AxcelRx(SM) Live video detailing platform
which hosts promotional, peer selling and other sales and marketing programs.
Top ten US pharmaceutical companies have adopted Aptilon's AxcelRx(SM)
solution to reach leading physicians. Aptilon provides the infrastructure
necessary 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.
AxcelRx(SM) and ReachNet(SM) are service marks of Aptilon Corporation.
This news release may contain 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
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Mr. Denis Martineau, President, Aptilon
Corporation, 1-888-544-8866, firstname.lastname@example.org; Jeremy Mackenzie Lee, The
Equicom Group, (514) 788-2434, email@example.com