Cyberplex Revenue Increases 243 Percent



    TORONTO, Aug. 9 /CNW/ - Cyberplex Inc. (TSX:CX) a leader in building and
promoting on-line business solutions, today announced its financial results
for the second quarter ended June 30, 2007.
    Revenue for the three month period ended June 30, 2007 was $4.44 million
up 243% from the $1.29 million generated a year earlier and an increase of 46%
from the $3.04 million recognized in the previous quarter. During the quarter,
the Company invested heavily in its sales and marketing initiatives which
helped generate the revenue growth and set the foundation for future
performance. On an operational basis, the loss before amortization and
interest income for the quarter was $4,000 compared to a $54,000 operating
loss for the same period a year earlier and a loss of $153,000 generated in
the previous quarter. Included in this figure for the quarter was a foreign
exchange loss of $130,000, a one time non-recurring charge of $41,000, and
stock-based compensation expense of $30,000.
    Gross margin for the quarter was 42%, up from the 36% recorded in the
previous quarter, primarily resulting from the improved margins realized from
our advertising division. The Company's top five clients accounted for
approximately 34% of the quarterly revenue with 78% of the revenue derived
from clients in the United States. The company finished the quarter with cash
and cash equivalents of $2.02 million compared to $3.12 million at March 31,
2007.
    "We are very pleased with our performance this quarter and the overall
growth for 2007," said Geoffrey Rotstein, chief executive officer of
Cyberplex. "Our strategy of building a recurring revenue model is unfolding
successfully and our increased investments in sales and marketing are helping
fuel our growth to establish a critical mass across the organization."

    Operational Results:

    Revenue from on-line advertising grew significantly on sequential basis
and year over year. For the three month period ended June 30, 2007, revenue
from on-line advertising increased to $3.39 million, compared to the
$2.04 million recorded in the previous quarter, an increase of $1.35 million.
Gross margin for the period was 41%, an increase from the 35% realized in the
previous quarter. Revenue from technology services of $1.05 million was up
from the $1.00 million recorded during the previous quarter. Gross margin for
the quarter also increased to 43%, up from 40% in the previous quarter.

    About Cyberplex

    Cyberplex Inc. (www.cyberplex.com) is a technology firm focused on
providing technology and web based solutions to its clients. The Company's
specialized team of technology, 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
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 BALANCE SHEETS


                                                     as at          as at
                                                    June 30,     December 31,
                                                      2007           2006
                                                 -------------  -------------
                                                  (unaudited)    (unaudited)

    ASSETS

    Current Assets:
      Cash and cash equivalents                  $    600,190   $    610,337
      Short-term investments                        1,421,130      2,825,068
      Accounts receivable, net of allowance
       for doubtful accounts of $288,978
       (December 31, 2006 $272,665)                 2,917,110      1,340,884
      Prepaid expenses and sundry assets              144,680        500,254
                                                 -------------  -------------
                                                    5,083,110      5,276,543


    Capital assets                                    914,255        841,271
    Goodwill                                        4,692,870      3,851,507
    Intangible assets                                 295,248        490,469

                                                 -------------  -------------
     TOTAL ASSETS                                $ 10,985,483   $ 10,459,790
                                                 -------------  -------------
                                                 -------------  -------------


    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current Liabilities:
      Accounts payable and accrued liabilities   $  2,466,350   $  1,717,341
      Deferred lease inducement                        19,429         45,383
      Note payable                                     96,783        143,566
      Future income taxes                             106,675        137,347
      Unearned revenue                                 49,329         36,742
                                                 -------------  -------------
                                                    2,738,566      2,080,379

    Future income taxes                                     -         39,842
    Deferred Lease inducements                        282,943        198,484
                                                 -------------  -------------
                                                      282,943        238,326

    SHAREHOLDERS' EQUITY

      Capital stock                                 9,012,180      8,918,941
      Contributed surplus                             411,967        361,174
      Accumulated other comprehensive income           46,417              -
      Deficit                                      (1,506,588)    (1,139,029)
                                                 -------------  -------------
                                                    7,963,975      8,141,087

                                                 -------------  -------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 10,985,483   $ 10,459,790
                                                 -------------  -------------
                                                 -------------  -------------



                               CYBERPLEX INC.
              CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT


                           Three Month Period Ended   Six Month Period Ended
                             June 30,     June 30,     June 30,     June 30,
                               2007         2006         2007         2006
                           (unaudited)  (unaudited)  (unaudited)  (unaudited)
                          ------------ ------------ ------------ ------------

    Revenue               $ 4,435,563  $ 1,293,075  $ 7,474,479  $ 2,510,188

    Cost of sales           2,591,266      649,110    4,530,582    1,328,848
                          ------------ ------------ ------------ ------------

    Gross Profit            1,844,297      643,965    2,943,897    1,181,340

    Expenses
      Sales and marketing
       expenses               986,742      181,863    1,476,799      365,167
      General and
       administrative
       expenses               861,059      516,176    1,623,857    1,001,571
                          ------------ ------------ ------------ ------------
                            1,847,801      698,039    3,100,658    1,366,738

    Loss before the
     undernoted                (3,504)     (54,074)    (156,761)    (185,398)

    Amortization of
     capital assets            61,151       67,525      116,275      142,824
    Amortization of
     Intangible assets         97,611       10,000      195,222            -
                          ------------ ------------ ------------ ------------

    Loss from operations     (162,266)    (131,599)    (468,258)    (328,222)

    Interest income            15,478       49,841       41,893       95,979

    Loss before income taxes (146,788)     (81,758)    (426,365)    (232,243)

    Income tax recovery
      Current                       -            -            -            -
      Future                   35,257            -       70,514            -

                          ------------ ------------ ------------ ------------
    Net income (loss)     $  (111,531) $   (81,758) $  (355,851) $  (232,243)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Other comprehensive
     Income (loss)
      Unrealized gain
       on marketable
       securities             (13,923)           -        2,216            -

                          ------------ ------------ ------------ ------------
    Total comprehensive
     income                  (125,454)     (81,758)    (353,635)    (232,243)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Deficit - beginning
     of the period         (1,367,211) (64,997,231)  (1,139,030) (64,846,746)

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

    Deficit - end of
     period               $(1,492,665) $   (81,758) $(1,492,665) $   (81,758)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Weighted average
     number of common
     shares - basic        42,130,545   32,648,219   42,107,595   32,542,820

    Weighted average
     number of common
     shares - diluted      42,130,545   32,648,219   42,107,595   32,542,820

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

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





For further information:

For further information: investor@cyberplex.com

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