Cyberplex Inc. Reports Record Fourth Quarter and 2007 Results

    Total Revenue More Than Triples Year-Over-Year

    TORONTO, March 25 /CNW/ - Cyberplex Inc. (TSX: CX) Cyberplex Inc.
(, a leader in providing web advertising solutions, on-line
customer acquisition strategies and application expertise to its clients,
today announced its financial results for the fiscal year-ended December 31,
2007 and fourth quarter-ended December 31, 2007.

    2007 Business Highlights Include:
    -   Revenue more than triples in 2007 compared to 2006
    -   Number of on-line advertising campaigns increases over 105% compared
        to the prior year
    -   Rebranding of the web advertising division to CX Digital Media
    -   Strengthened balance sheet with a $5M private placement completed
        subsequent to year end

    "2007 was a pivotal year for Cyberplex as we continued to grow our
Company, expand our market share, and solidify our position as a leader in
performance-based web advertising solutions" said Geoffrey Rotstein, Chief
Executive Officer of Cyberplex Inc. "Together with our technology services
division, we remain focused on execution and are pleased with our aggressive
growth, our financial progress and our ability to deliver value and improved
business results to all of our clients."
    Through the acquisition of Incentaclick (now CX Digital Media Inc.) in
December 2006, Cyberplex entered into the market of performance-based online
customer acquisition. The market for on-line media has experienced tremendous
growth over the past number of years and industry experts believe this trend
will continue. CX Digital Media serves a segment of this market that has
already begun to capitalize on this exciting growth opportunity.

    Results for the year ended December 31, 2007:
    -   The Company generated revenue of $17.7M, an increase of 231% compared
        to the $5.3M generated in 2006
    -   Web advertising revenue increased over 90% yearly and grew on a
        sequential quarter over quarter basis
    -   Value of customer campaigns increased over 150% during the year

    For the year ended December 31, 2007, the Company generated revenue of
$17.7M, an increase of $12.4M or 231% when compared to the $5.3M generated in
2006. This increase resulted from the web advertising division, which
generated approximately $13.0M in revenue. Revenue generated from the
technology services division totaled $4.7M, as compared to $5.0M in 2006. The
loss before amortization, interest and other items was approximately $772K, an
increase from the loss of $463K incurred during 2006. Included in the loss for
2007 was approximately $426K in foreign exchange losses and $255K of
stock-based compensation expenses. These same charges in 2006 were ($44K) and
$54K respectively.
    Gross margin for the year ended December 31, 2007 was 40%, as compared to
46% for the same period last year. Gross margin for the web advertising and
technology services was 42% and 35% respectively.
    The largest three clients in 2007 accounted for approximately 24% of
revenue, compared with 41% last year. No client exceeded 10% of total revenue
and the top 10 clients accounted for just 43% of revenue whereas in the
previous year, the top 10 clients accounted for over 70% of revenue.
    "Looking ahead to 2008, we are very encouraged by the business trends
that we are witnessing in all areas of our business. As advertising and
marketing dollars continue to move towards on-line initiatives, solutions that
enable companies to track and analyze their performance will be in demand. Our
affiliate network and CPA based business model is the type of solution that
clients are seeking, and we believe we are well positioned to capitalize on
this trend. We are confident that as we continue to invest in and expand our
web advertising division, we will deliver even greater value to our
shareholders." concluded Geoffrey Rotstein, Chief Executive Officer of
Cyberplex Inc.

    Results for the fourth quarter of 2007:
    Fourth quarter revenue of $5.5M was an increase of 16% over the $4.7M
generated in the previous quarter. This increase was a result of growth from
both the web advertising and technology services divisions. The growth in web
advertising resulted from adding new publishers, the increase in campaign
budgets during the quarter and the result of our proprietary publishing
initiatives. The loss before amortization, interest and other items for the
quarter increased to $470,000, up from a loss of $145,000 the previous
quarter. The increased loss was the direct result of growing sales and
marketing efforts during the quarter, which we expect to better position the
company for 2008, and an increase to the bad debt provision. Approximately
$429,000 of bad debt expense was recorded during the quarter, with one
customer accounting for a significant portion of this amount. The Company
believes that improved controls and policies are currently in place to prevent
this type of exposure in the future.
    Gross margin for the quarter was 39%, consistent with the 41% realized in
the previous quarter and consistent with the 40% generated in the same quarter
in 2006. The margin in the web advertising division was up slightly at 44%,
while the margin from the technology services business decreased to 25%. This
decrease was the result of certain over runs in various projects that required
additional work and resulted in the reduced margin. The largest five accounts
during the quarter accounted for approximately 45% of the revenue and 69% of
the revenue was derived from clients in the United States.
    Subsequent to year end, Cyberplex completed a brokered private placement
for $5.0 million which helped strength its balance sheet and also enable the
company to continue it path of aggressive growth.

    Conference Call Details:
    In conjunction with this announcement, Cyberplex will host a conference
call Wednesday, March 26 at 8:30 am EST to discuss the company's fourth
quarter and fiscal year end 2007 financial results. To access this call, dial
this dedicated number 888-892-3255. The conference recording will be available
for 24 hours after the conference call. The playback phone number is
1-800-937-6305, passcode is 291647.

    About Cyberplex
    Cyberplex Inc. ( is a leader in providing web
advertising solutions and on-line customer acquisition strategies, as well as
application expertise, to its clients.
    The Company, through its subsidiaries, has developed a proprietary
affiliate network 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 programs as they design, develop
and promote solutions that deliver results.
    With over 14 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 San Diego 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.

    Consolidated Balance Sheets

    December 31, 2007 and 2006
                                                        2007         2006
                                                     (unaudited)  (unaudited)
                                                    ------------ ------------

    Current Assets:
      Cash and cash equivalents                     $   380,114  $   610,337
      Short-term investments                             93,063    2,825,068
      Accounts receivable, net of allowance
       for doubtful accounts of $752,015
       (2006 - $272,665)                              4,264,373    1,340,884
      Prepaid expenses and other assets                 338,024      500,254
                                                    ------------ ------------
                                                      5,075,574    5,276,543

    Capital assets                                    1,019,496      841,271

    Intangible assets                                   187,157      490,469

    Goodwill                                          5,959,615    3,851,507

                                                    ------------ ------------
                                                    $12,241,842  $10,459,790
                                                    ------------ ------------
                                                    ------------ ------------

    Liabilities and Shareholders' Equity

    Current Liabilities:
      Bank indebtedness                             $   678,967  $         -
      Accounts payable and accrued liabilities        3,185,545    1,717,339
      Notes payable                                           -      143,566
      Unearned revenue                                  149,535       36,742
      Future income taxes                                     -      137,347
      Deferred lease inducements                         51,582       45,383
                                                    ------------ ------------
                                                      4,065,629    2,080,377

    Future income taxes                                       -       39,842

    Deferred lease inducements                          216,097      198,484

    Shareholders' equity                              7,960,116    8,141,087

                                                    ------------ ------------
                                                    $12,241,842  $10,459,790
                                                    ------------ ------------
                                                    ------------ ------------

    Consolidated Statements of Operations

                             Three Months Ended        Twelve Months Ended
                          ------------------------- -------------------------
                          December 31, December 31, December 31, December 31,
                                 2007         2006         2007         2006
                           (unaudited)  (unaudited)  (unaudited)  (unaudited)
                          ------------ ------------ ------------ ------------

    Revenue               $ 5,461,515  $ 1,582,086  $17,651,509  $ 5,333,221
    Cost of revenue         3,341,346      941,725   10,643,665    2,879,533
                          ------------ ------------ ------------ ------------
                            2,120,169      640,361    7,007,844    2,453,688

      Sales and marketing   1,525,913      279,287    4,093,673      875,362
      General and
       administrative         991,006      565,338    3,260,549    2,085,570
      Foreign exchange
       loss (gain)             73,242      (41,212)     425,687      (44,390)
                          ------------ ------------ ------------ ------------
                            2,590,161      803,413    7,779,909    2,916,542

    Loss before the
     undernoted              (469,992)    (163,052)    (772,065)    (462,854)

    Amortization of
     capital assets            92,706      853,636      281,132    1,054,613
    Amortization of
     intangible assets        116,188       59,277      418,630      109,637
    Gain on disposal of
     capital assets           (68,072)           -      (68,072)           -

    Loss from operations     (610,814)  (1,075,965)  (1,403,755)  (1,627,104)

    Dividend income            30,776            -       30,776            -
    Interest income             5,500       67,878       56,243      244,498
    Interest expense          (19,561)           -      (19,561)      (4,300)
    Gain on sale of
     short-term investment     17,005            -       16,252            -
                          ------------ ------------ ------------ ------------
                               33,720       67,878       83,710      240,198

    Loss before income taxes (577,094)  (1,008,087)  (1,320,045)  (1,386,906)

    Income tax recovery :
      Current                       -      (20,618)           -      (20,618)
      Future                  (71,418)     (76,775)    (177,189)     (76,775)
                          ------------ ------------ ------------ ------------
                              (71,418)     (97,393)    (177,189)     (97,393)

                          ------------ ------------ ------------ ------------
    Loss for the year and
     other comprehensive
     loss                 $  (505,676) $  (910,694) $(1,142,856) $(1,289,513)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Weighted average number
     of shares used in
     basic and diluted
     loss per share        42,996,815   41,816,260   42,474,497   37,183,511

    Loss per share basic
     and diluted          $     (0.01) $     (0.02) $     (0.03) $     (0.03)

For further information:

For further information: Susie Ibbotson, Media Relations, Cyberplex,
(416) 260-4763, 1-888-597-8889 ext. 4763, 1-888-597-8890,

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