ENGINEERING.com Incorporated Announces Q3 2010 Results

TORONTO, ONTARIO -- (MARKET WIRE) -- Nov 03, 2010 -- ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the ENGINEERING.com online resource and business for engineers today announced its financial results for the third quarter of 2010.

ENGINEERING.com revenue was $312,503 for the three months ended September 30, 2010, compared to revenue of $364,081 for the third quarter of 2009. The decline in revenue was focused on the educational software product line as many schools in the United States suffered the impact of declining budgets. The impact was exacerbated by the strength of the Canadian dollar relative to the American dollar compared to a year ago. Mitigating these declines was the increase in Internet-based revenue which grew by 90% from the comparable period in 2009 to $137,129 in the third quarter of 2010. The net loss for the three months ended September 30, 2010, totaled ($131,123) and $0.00 per Common Share compared with a net loss of ($98,545) and $0.00 for the same period a year ago.

Operating profit (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was a loss of ($108,750) or $0.00 per Common Share for the third quarter of 2010 compared with an operating loss of ($45,114) or $0.00 per Common Share for the three months ended September 30, 2009. The operating expenses in the latest period were $288,868 compared to $292,738 for the third quarter a year earlier.

"The Company continued to focus its growth efforts on Internet advertising and related services during the third quarter" said John Hayes, President of ENGINEERING.com. "This focus drove growth in paid advertising impressions by 105% when compared to the third quarter last year".

As at September 30, 2010, the Company had a cash balance of $148,014 compared to a cash balance of $199,570 as at September 30, 2009. This cash balance is relatively small when compared to the Company's ongoing obligations as described on pages 6 and 7 of the Company's Second Quarter 2010 Management Discussion & Analysis under the heading, "Present Status and Risk Factors" as filed on September 15, 2010.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE: EGN) is the developer-owner of the www.ENGINEERING.com Web site and business. ENGINEERING.com offers marketing and lead generation 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

EBITDA is defined by the Company as operating income before interest expense, income taxes, amortization, stock- based compensation and asset dispositions. 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.


Balance Sheet                                                               
                                               (unaudited)         (audited)
                                                    As at             As at 
                                       September 30, 2010     Dec. 31, 2009 
----------------------------------------------------------------------------
                                                        $                 $ 
ASSETS                                                                      
CURRENT ASSETS                                                              
Cash                                              148,014           106,118 
Accounts receivable                               184,663           291,761 
Prepaid expenses and deposits                      21,324            30,391 
----------------------------------------------------------------------------
TOTAL CURRENT ASSETS                              354,001           428,270 

CAPITAL ASSETS                                     22,397            27,916 
INTANGIBLE ASSETS                                 314,962           412,993 
----------------------------------------------------------------------------
TOTAL ASSETS                                      691,360           869,179 
----------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Accounts payable and accrued                                                          
  liabilities                                                                            899,203                      707,147  
Deferred  revenue                                                                      50,070                        46,614  
Promissory  notes                                                                              --                        24,999  
----------------------------------------------------------------------------
TOTAL  LIABILITIES                                                                  949,273                      778,760  
----------------------------------------------------------------------------

SHAREHOLDERS'  EQUITY                                                                                                                
Share  capital                                                                    15,113,752                15,113,752  
Contributed  surplus                                                              434,047                      417,959  
Deficit                                                                              (15,805,712)            (15,441,292)
----------------------------------------------------------------------------
TOTAL  SHAREHOLDERS'  EQUITY                                              (257,913)                      90,419  
----------------------------------------------------------------------------
TOTAL  LIABILITIES  AND  SHAREHOLDERS'                                                                                  
  EQUITY                                                                                      691,360                      869,179  
----------------------------------------------------------------------------


STATEMENT  OF  OPERATIONS  AND  DEFICIT                                                                                  
(unaudited)                                                                                                                                  

                                          Three  Months    Three  Months      Nine  Months      Nine  Months  
                                            Ended  Sept.      Ended  Sept.      Ended  Sept.      Ended  Sept.  
                                                  30,  2010            30,  2009            30,  2010            30,  2009  
                                          -------------------------------------------------------
                                                                $                          $                          $                          $  

REVENUE                                      312,503              364,081          1,042,941              944,403  
COST  OF  SALES                          132,385              116,457              427,942              306,994  
----------------------------------------------------------------------------
GROSS  PROFIT                            180,118              247,624              614,999              637,409  
----------------------------------------------------------------------------


OPERATING  EXPENSES                                                                                                                    
Salaries  and                                                                                                                                
  benefits                                  125,799              121,338              404,997              400,553  
Marketing  expenses                  27,856                22,444                76,356                68,102  
Development  costs                    50,151                73,676              156,388              207,539  
General  and                                                                                                                                  
  administrative                        85,062                74,280              209,127              227,561  
----------------------------------------------------------------------------
                                                    288,868              292,738              846,686              903,755  
----------------------------------------------------------------------------
INCOME  (LOSS)  BEFORE                                                                                                                
  UNDERNOTED  ITEMS                (108,750)            (45,114)          (231,869)          (266,346)


Stock  based                                                                                                                                  
  compensation                            (3,608)              (3,844)            (16,087)            (24,492)
Depreciation  expense            (18,765)            (49,587)          (116,464)          (147,893)
----------------------------------------------------------------------------

NET  LOSS                                  (131,123)            (98,545)          (364,421)          (438,731)
----------------------------------------------------------------------------


Basic  and  diluted                                                                                                                      
  loss  per  share  -                                                                                                                      
  Total                                            (0.00)                (0.00)                (0.01)                (0.01)

WEIGHTED  AVERAGE                                                                                                                        
  NUMBER  OF                                                                                                                                    
COMMON  SHARES  (basic                                                                                                                
  and  diluted)                    36,870,623        36,870,623        36,870,623        36,870,623  
----------------------------------------------------------------------------



Statements  of                                                                                                                              
  Deficit                                                                                                                                        
----------------------------------------------------------------------------
Deficit,  beginning                                                                                                                    
  of  Period                        (15,674,589)    (15,298,684)    (15,441,292)    (14,958,498)
Net  loss                                  (131,123)            (98,545)          (364,420)          (438,731)
----------------------------------------------------------------------------
DEFICIT,  end  of                                                                                                                          
  period                              (15,805,712)    (15,397,229)    (15,805,712)    (15,397,229)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


STATEMENT  OF  CASH  FLOWS                                                                                                          
(unaudited)                                                                                                                                  


                                                                  Three                Three                Nine                Nine  
                                                                Months              Months            Months            Months  
                                                                  Ended                Ended              Ended              Ended  
                                                            Sept.  30        Sept.  30,      Sept.  30,      Sept.  30,  
                                                                    2010                  2009                2010                2009  
----------------------------------------------------------------------------
                                                                          $                        $                      $                      $  
OPERATING  ACTIVITIES                                                                                                                
Net  loss                                            (131,123)          (98,545)      (364,421)      (438,731)
Add  items  not  affecting                                                                                                          
  cash:                                                                                                                                            
Stock  based  compensation                  3,608                3,844            16,087            24,492  
Depreciation  and                                                                                                                        
  amortization                                      18,765              49,587          116,464          147,893  
Changes  in  operating  assets                                                                                                  
  and  liabilities  other  than                                                                                                  
  cash                                                      67,698          (115,185)        311,678        (139,087)
----------------------------------------------------------------------------
CASH  USED  IN  OPERATING                                                                                                            
  ACTIVITIES                                        (41,052)        (160,229)          79,808        (405,433)
----------------------------------------------------------------------------


FINANCING  ACTIVITIES                                                                                                                
Proceeds  of  share  issuance                    --                      --                    --          354,744  
Promissory  notes                                                                                                                        
                                                                (4,031)          (17,259)        (24,999)        (49,119)
----------------------------------------------------------------------------
CASH  PROVIDED  BY  (USED  IN)                                                                                                    
  FINANCING  ACTIVITIES                      (4,031)          (17,259)        (24,999)        305,625  
----------------------------------------------------------------------------


INVESTING  ACTIVITIES                                                                                                                
Fixed  assets                                        (4,348)            (6,284)        (12,914)        (12,610)
----------------------------------------------------------------------------
CASH  PROVIDED  BY  (USED  IN)                                                                                                    
  INVESTING  ACTIVITIES                      (4,348)            (6,284)        (12,914)        (12,610)
----------------------------------------------------------------------------

INCREASE  (DECREASE)  IN  CASH        (49,431)        (183,842)          41,896        (112,418)
----------------------------------------------------------------------------
CASH,  beginning  of  period            197,445            383,412          106,118          311,988  
----------------------------------------------------------------------------
CASH,  end  of  period                        148,014            199,570          148,014          199,570  
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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