ENGINEERING.com revenue was $317,050 for the three months ended June 30, 2008, compared to revenue of $532,607 for the second quarter of 2007. The net loss for the three months ended June 30, 2008, totaled ($162,536) and ($0.01) per Common Share compared with a net loss of ($77,422) and ($0.00) for the same period a year ago. The decrease in revenue is attributed primarily to decreasing revenues associated with the provision of information technology services to a related party. As at June 30, 2008, the Company had a cash balance of $389,057 compared to a cash balance of $230,268 as at June 30, 2007.
Operating loss measured as earnings before interest, taxes, amortization and stock-based compensation, was ($97,180) or $0.00 per Common Share for the second quarter of 2008 compared with an operating loss of ($5,318) or ($0.00) per Common Share for the three months ended June 30, 2007. The operating expenses in the latest period were $323,380, down from $379,325 in the second quarter a year earlier. The reduction in operating expense resulted from lower salaries and administrative expenses.
"During the second quarter of this year we saw a significant increase in the number of visitors, page views and registration for services at ENGINEERING.com," said John Hayes, President. "We look forward to sustaining our momentum by building additional features to increase our web traffic and related advertising revenues."
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (
EBITDA
Operating Income (EBITDA) is defined by the Company as operating income before interest expense, income taxes, amortization stock-based compensation, asset dispositions and provision for discontinued operations. The Company has included information concerning EBITDA because it believes that EBITDA is used by certain investors as one measure of the Company's financial performance. EBITDA is not a measure of financial performance under Canadian generally accepted accounting principles and is not necessarily comparable to similarly titled measures used by other companies. EBITDA should not be construed as an alternative to net income or to cash flows from operating activities (as determined in accordance with Canadian generally accepted accounting principles) as a measure of liquidity.
Forward Looking Statements
This press release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements. ENGINEERING.com Incorporated undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.
The contents of this News Release have been reviewed and approved by the Audit Committee and the Board of Directors.
Engineering.Com
Balance Sheet
Unaudited Audited
June 30, 2008 December 31, 2007
ASSETS
Current Assets
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Cash 389,057 288,916
Accounts Receivable 119,912 146,063
Due from related parties 30,973 330,557
Prepaids Expenses and Deposits 51,663 58,044
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Total Current Assets 591,605 823,580
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Capital Assets, net 31,905 29,567
Intangible Assets, net 680,796 770,063
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TOTAL ASSETS 1,304,306 1,623,210
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LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
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Accounts Payable & Accrued Liabilities 735,538 768,878
Deferred Income 38,672 70,745
Promissory notes - short-term 48,946 47,582
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Total current liabilities 823,156 887,205
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Promissory notes - long-term 48,727 69,179
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TOTAL LIABILITIES 871,883 956,384
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SHAREHOLDERS EQUITY
Share Capital 14,759,008 14,759,008
Contributed Surplus 379,521 346,063
Deficit (14,706,106) (14,438,245)
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TOTAL SHAREHOLDERS EQUITY 432,423 666,826
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TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,304,306 1,623,210
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Engineering.Com
Statements of Income
(Unaudited) Three months Three months
ended ended
June 30, 2008 June 30, 2007
REVENUE 317,050 532,607
COST OF SALES 90,850 158,600
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GROSS PROFIT 226,200 374,007
GROSS PROFIT % 71.3% 70.2%
EXPENSES (INCOME)
Salaries & benefits 160,318 193,770
Marketing expenses 13,950 6,309
Development costs 55,934 67,988
General & Administrative 93,178 111,258
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323,380 379,325
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Operating Income (Loss) (EBITDA) before
under noted items: (97,180) (5,318)
Stock based compensation (16,611) (21,467)
Amortization Expense (48,745) (50,637)
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(65,356) (72,104)
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NET LOSS (162,536) (77,422)
-------------- --------------
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BASIC AND DILUTED LOSS PER SHARE (0.01) (0.00)
Weighted Average Number of Common Shares
(basic and diluted) 29,496,499 29,496,499
Consolidated Statements of Deficit
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DEFICIT, beginning of period (14,543,603) (14,281,887)
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Net Loss (162,536) (77,422)
DEFICIT, end of period (14,706,139) (14,359,309)
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Engineering.Com Inc.
Cash Flow Statements
(Unaudited)
Three Months Three Months
Ended Ended
June 30, 2008 June 30,2007
OPERATING ACTIVITIES
Net Loss (162,536) (77,422)
ADD - Items not affecting cash
Stock based compensation 16,611 21,467
Amortization 48,745 50,638
Changes in operating assets and liabilities
other than cash 227,929 (62,329)
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CASH FLOWS FROM OPERATING ACTIVITIES 130,749 (67,646)
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FINANCING ACTIVITIES
Promissory Notes (12,969) (70,051)
-------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES (12,969) (70,051)
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INVESTING ACTIVITIES
Fixed Assets (3,523) (11,545)
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CASH FLOWS FROM INVESTING ACTIVITIES (3,523) (11,545)
-------------- -------------
Net increase (decrease) in cash 114,257 (149,242)
CASH, beginning of period 274,800 379,510
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CASH, end of period 389,057 230,268
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The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: ENGINEERING.com, Inc. John Hayes President & CFO (905) 273-9991, ext. 280 or Toll Free: 1-877-997-9917 (905) 273-6691 (FAX) Email: Email Contact Website: www.engineering.com