ENGINEERING.com Incorporated Announces Q2 2008 Results
[ Back ]   [ More News ]   [ Home ]
ENGINEERING.com Incorporated Announces Q2 2008 Results

TORONTO, ONTARIO -- (MARKET WIRE) -- Aug 05, 2008 -- ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the ENGINEERING.com online resource and business for engineers today announced its financial results for the second quarter of 2008.

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 (TSX VENTURE: EGN) is the developer-owner of the www.ENGINEERING.com Web site and Internet-based software and business. ENGINEERING.com offers hosted and deployed engineering software and services to manufacturers, design consultants and engineering academia around the world. The 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

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
--------------
 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

                                           --------------- -----------------
 Total Current Assets                            591,605            823,580
                                           --------------- -----------------

 Capital Assets, net                              31,905             29,567

 Intangible Assets, net                          680,796            770,063

                                           --------------- -----------------
 TOTAL ASSETS                                  1,304,306          1,623,210
                                           --------------- -----------------
                                           --------------- -----------------

LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
-------------------
 Accounts Payable & Accrued Liabilities          735,538            768,878
 Deferred Income                                  38,672             70,745
 Promissory notes - short-term                    48,946             47,582

                                           --------------- -----------------
 Total current liabilities                       823,156            887,205
                                           --------------- -----------------

 Promissory notes - long-term                     48,727             69,179

                                           --------------- -----------------
 TOTAL LIABILITIES                               871,883            956,384
                                           --------------- -----------------
                                           --------------- -----------------

SHAREHOLDERS EQUITY
 Share Capital                                14,759,008         14,759,008
 Contributed Surplus                             379,521            346,063
 Deficit                                     (14,706,106)       (14,438,245)

                                           --------------- -----------------
 TOTAL SHAREHOLDERS EQUITY                       432,423            666,826
                                           --------------- -----------------

                                           --------------- -----------------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY      1,304,306          1,623,210
                                           --------------- -----------------
                                           --------------- -----------------


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
                                          --------------      --------------

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
                                          --------------      --------------
                                                323,380             379,325
                                          --------------      --------------

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)

                                          --------------      --------------
                                                (65,356)            (72,104)
                                          --------------      --------------

                                          --------------      --------------
NET LOSS                                       (162,536)            (77,422)
                                          --------------      --------------
                                          --------------      --------------

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

                                          --------------      --------------
DEFICIT, beginning of period                (14,543,603)        (14,281,887)
                                          --------------      --------------
Net Loss                                       (162,536)            (77,422)
DEFICIT, end of period                      (14,706,139)        (14,359,309)
                                          --------------      --------------
                                          --------------      --------------



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)

                                                -------------- -------------
 CASH FLOWS FROM OPERATING ACTIVITIES                 130,749       (67,646)
                                                -------------- -------------

FINANCING ACTIVITIES

 Promissory Notes                                     (12,969)      (70,051)

                                                -------------- -------------
 CASH FLOWS FROM FINANCING ACTIVITIES                 (12,969)      (70,051)
                                                -------------- -------------

INVESTING ACTIVITIES

 Fixed Assets                                          (3,523)      (11,545)

                                                -------------- -------------
 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

                                                -------------- -------------
CASH, end of period                                   389,057       230,268
                                                -------------- -------------
                                                -------------- -------------


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