ENGINEERING.com revenue was $543,165 for the three months ended March 31, 2007, compared to revenue of $619,243 for the first quarter of 2006. The net loss for the three months ended March 31, 2007, totaled ($61,067) and ($0.00) per Common Share compared with a net loss of ($28,362) and ($0.00) for the same period a year ago. Operating income (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was $10,401 or $0.00 per Common Share for the first quarter of 2007 compared with a operating gain of $36,338 or ($0.00) per Common Share for the three months ended March 31, 2006.
The operating expenses in the latest period were $371,607 compared to $398,855 for the first quarter a year earlier. The reduction of operating expense is attributable primarily to decreasing salaries and benefits costs and declining general & administrative expense. The decrease in revenue is attributed to a decline in the value of information technology services provided to RAND Worldwide, the Company's largest shareholder.
"We are pleased to report positive operating results," said John Hayes, President of ENGINEERING.com. " We launched a number of new services in the fourth quarter of 2006 and the first quarter of 2007 to support our online community of engineers. We are continuing to add services and our online community continues to grow."
The Company also announced that the date for its annual general meeting of shareholders has been changed from the previously announced date of June 26, 2007 to June 19, 2007.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (
ENGINEERING.com Incorporated head office is located in Mississauga, Ontario, Canada and can be reached toll-free at 1-877-997-9917, by facsimile at 905-273-6691 or through the Internet at www.ENGINEERING.com.
EBITDA
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 operating 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
As at March 31, 2007
Unaudited Audited
March 31, 2007 December 31, 2006
ASSETS
Current Assets
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Cash 379,510 187,190
Accounts Receivable 134,301 209,012
Prepaids Expenses and Deposits 42,321 55,938
Due from related parties 163,868 232,470
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Total Current Assets 720,000 684,610
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Capital Assets, net 26,933 32,300
Intangible Assets, net 903,965 948,598
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TOTAL ASSETS 1,650,898 1,665,508
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LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
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Accounts Payable & Accrued Liabilities 554,527 511,706
Deferred Income 73,201 30,725
Promissory notes - short-term 122,004 160,812
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Total current liabilities 749,732 703,243
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Promissory notes - long-term 134,264 155,763
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TOTAL LIABILITIES 883,996 859,006
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SHAREHOLDERS EQUITY
Share Capital 14,759,008 14,759,008
Contributed Surplus 289,781 268,314
Deficit (14,281,887) (14,220,820)
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TOTAL SHAREHOLDERS EQUITY 766,902 806,502
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TOTAL LIABILITIES AND SHAREHOLDERS
EQUITY 1,650,898 1,665,508
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Engineering.Com
Statements of Income
(Unaudited)
Three months Three months
ended ended
March 31, 2007 March 31, 2006
REVENUE 543,165 619,243
COST OF SALES 161,157 184,050
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GROSS PROFIT 382,008 435,193
EXPENSES (INCOME)
Salaries & benefits 202,248 211,977
Marketing expenses 6,830 5,101
Development costs 60,594 67,585
General & Administrative 101,935 114,192
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371,607 398,855
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Operating Income (Loss) (EBITDA) before
under noted items: 10,401 36,338
Stock based compensation (21,467) (19,870)
Amortization Expense (50,001) (66,830)
Other income - tax recovery - 22,000
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(71,468) (64,700)
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NET LOSS (61,067) (28,362)
-------------- --------------
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BASIC AND DILUTED LOSS PER SHARE (0.00) (0.00)
Weighted Average Number of Common Shares
(basic and diluted) 29,496,499 29,496,499
Consolidated Statements of Deficit
-------------- --------------
DEFICIT, beginning of period (14,220,820) (13,958,728)
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Net Loss (61,067) (28,362)
DEFICIT, end of period (14,281,887) (13,987,090)
-------------- --------------
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Engineering.Com Inc.
Cash Flow Statements
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 2007 March 31,2006
OPERATING ACTIVITIES
Net Loss (61,067) (28,362)
ADD - Items not affecting cash
Stock based compensation 21,467 19,870
Amortization 50,001 66,830
Changes in operating assets and
liabilities other than cash 242,227 (140,362)
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CASH FLOWS FROM OPERATING ACTIVITIES 252,628 (82,024)
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FINANCING ACTIVITIES
Promissory Notes (60,308) 46,862
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CASH FLOWS FROM FINANCING ACTIVITIES (60,308) (46,862)
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INVESTING ACTIVITIES
Note receivable - 74,091
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CASH FLOWS FROM INVESTING ACTIVITIES - 74,091
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Net increase (decrease) in cash 192,320 (54,795)
CASH, beginning of period 187,190 179,347
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CASH, end of period 379,510 124,552
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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