ENGINEERING.COM Incorporated Announces Second Quarter Results

TORONTO, ONTARIO -- (MARKET WIRE) -- Aug 12, 2011 -- ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the ENGINEERING.com online resource for engineers today announced its unaudited financial results for the second quarter ended June 30, 2011.

Beginning with the first quarter of 2011, Engineering.com reported its financial results in accordance with International Financial Reporting Standards (IFRS), as required for public companies in Canada. Previously, the Company reported its financial results under Canadian Generally Accepted Accounting Standards (GAAP). Financial results for the corresponding period in 2010 have been restated to reflect the adoption of IFRS.

ENGINEERING.com revenue was $370,682 for the three month ended June 30, 2011, compared to revenue of $412,667 for the second quarter in 2010. The net loss for the three months ended June 30, 2011, totaled ($75,459) and ($0.00) per Common Share compared with a net loss of ($111,939) and ($0.00) for the same period a year ago. The decrease in revenue is the result of decreasing software sales.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($67,213) or ($0.00) per Common Share for the second quarter of 2011 compared with an operating loss of ($58,402) or ($0.00) per Common Share for the three month period ended June 30, 2010. The operating expenses in the latest period were $275,400, down from $285,875 in the second quarter a year earlier.

"Traffic to our primary web site more than doubled in the year to date as compared to the first six months of 2010," said John Hayes, President of ENGINEERING.com. "In addition, advertisers are discovering that our new sponsored video series like the Product Design Show and Some Assembly Required represent a powerful way for them to connect with engineers."

As at June 30, 2011, the Company had a cash balance of $30,635 compared to a cash balance of $78,244 as at December 31, 2010. This cash balance is relatively small when compared to the Company's ongoing obligations and in light of continued operating losses. On August 4, 2011 the Company announced a private placement of up to 7,000,000 Common Shares at a subscription price of $0.05 per share for gross proceeds of up to $350,000. The proceeds from this private placement will be used for general working capital purposes. This pending transaction is subject to regulatory approval. Readers are referred to page 9 of the Company's 2010 Annual Management Discussion & Analysis under the heading, "Present Status and Risk Factors" as filed on April 28, 2011.

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, 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 IFRS 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 IFRS 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. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. 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.


Condensed Interim Statements of Financial Position                          
(In Canadian dollars, Unaudited)                                            
                                                                            
                                                     June 30,  December 31, 
                                                         2011          2010 
----------------------------------------------------------------------------
                                                            $             $ 
ASSETS                                                                      
CURRENT ASSETS                                                              
  Cash                                                 30,635        78,244 
  Accounts receivable                                 312,601       316,302 
  Prepaid expenses and deposits                        20,889        13,895 
----------------------------------------------------------------------------
TOTAL CURRENT ASSETS                                  364,125       408,441 
                                                                                          
PROPERTY  AND  EQUIPMENT                                                                  15,391                20,727  
INTANGIBLE  ASSETS                                                                          320,368              316,063  
----------------------------------------------------------------------------
    TOTAL  ASSETS                                                                                699,884              745,231  
----------------------------------------------------------------------------
                                                                                                                                                        
LIABILITIES  AND  SHAREHOLDERS'  EQUITY                                                                                
CURRENT  LIABILITIES                                                                                                                  
    Accounts  payable  and  accrued  liabilities                        525,529              489,015  
    Deferred  revenue                                                                        115,759                65,640  
----------------------------------------------------------------------------
    TOTAL  LIABILITIES                                                                      641,288              554,655  
                                                                                                                                                        
SHAREHOLDERS'  EQUITY                                                                                                                
    Share  capital                                                                        15,113,752        15,113,752  
    Contributed  surplus                                                                  483,846              472,843  
    Deficit                                                                                  (15,539,002)    (15,396,019)
----------------------------------------------------------------------------
TOTAL  SHAREHOLDERS'  EQUITY                                                          58,596              190,576  
----------------------------------------------------------------------------
TOTAL  LIABILITIES  AND  SHAREHOLDERS'  EQUITY                        699,884              745,231  
----------------------------------------------------------------------------
                                                                                                                                                        
Condensed  Interim  Statements  of  Loss  and  Comprehensive  Loss                                  
(In  Canadian  dollars,  Unaudited)                                                                                        
                                                                                                                                                        
                                                                                  Three  months            Six  month  months  
                                                                              ended  June  30,                ended  June  30,  
                                                                            2011              2010              2011              2010  
----------------------------------------------------------------------------
                                                                                  $                    $                    $                    $  
                                                                                            (Note  6)                            (Note  6)
REVENUE  (Note  5)                                      370,682        412,667        726,241        730,438  
COST  OF  SALES                                            162,495        185,194        320,790        295,559  
----------------------------------------------------------------------------
GROSS  PROFIT                                              208,187        227,473        405,415        434,879  
----------------------------------------------------------------------------
                                                                                                                                                        
OPERATING  EXPENSES                                                                                                                    
    Salaries  and  benefits                        138,085        145,179        276,983        279,197  
    Marketing  expenses                                21,489          28,702          44,171          48,499  
    Development  costs                                  49,946          56,154          97,126        106,237  
    General  and  administrative                65,880          55,840        112,782        124,066  
----------------------------------------------------------------------------
                                                                      275,400        285,875        531,062        557,999  
----------------------------------------------------------------------------
LOSS  BEFORE  UNDERNOTED  ITEMS:            (67,213)      (58,402)    (125,611)    (123,120)
    Stock  based  compensation                    (5,201)        (5,411)      (11,003)      (12,025)
    Amortization  expense                            (3,045)      (48,126)        (6,369)      (97,699)
----------------------------------------------------------------------------
NET  LOSS                                                      (75,459)    (111,939)    (142,983)    (232,845)
----------------------------------------------------------------------------
                                                                                                                                                        
Loss  per  share                                                                                                                            
    Basic                                                              0.00              0.00              0.00            (0.01)
    Diluted                                                          0.00              0.00              0.00            (0.01)
Weighted  average  number  of  Common  Shares                                                                        
(basic  and  diluted)                          36,870,623  36,870,623  36,870,623  36,870,623  
----------------------------------------------------------------------------
                                                                                                                                                        
Condensed  Statements  of  Changes  in  Shareholder's  Equity                                          
(In  Canadian  dollars,  Unaudited)                                                                                        
                                                                                                                                                        
Six  months  ended  June  30,  2011:                                                                                          
                                                                                                                                                        
                                                          #                    $                      $                                              
                                          Number  of            Share  Contributed                      $                  $  
                                  Common  Shares        Capital          Surplus          Deficit          Total  
----------------------------------------------------------------------------
At  December  31,                                                                                                                          
  2010                              38,870,623  15,113,752          472,843  (15,396,019)    190,576  
----------------------------------------------------------------------------
Net  Loss  for  the                                                                                                                        
  period                                          --                  --                    --        (142,983)  (142,983)
Stock  based                                                                                                                                  
  compensation                              --                  --            11,003                      -        11,003  
----------------------------------------------------------------------------
At  June  30,  2011        38,870,623  15,113,752          483,846  (15,539,002)      58,596  
----------------------------------------------------------------------------
                                                                                                                                                        
Six  months  ended  June  30,  2010:                                                                                          
                                                                                                                                                        
At  January  1,  2010    38,870,623  15,113,752          445,548  (15,468,881)      90,419  
----------------------------------------------------------------------------
Net  Loss  for  the                                                                                                                        
  period                                          --                  --                    --        (232,845)  (232,845)
Stock  based                                                                                                                                  
  compensation                              --                  --            12,025                      -        12,025  
----------------------------------------------------------------------------
At  June  30,  2010        38,870,623  15,113,752          457,575  (15,701,726)    130,399  
----------------------------------------------------------------------------
                                                                                                                                                        
Condensed  Interim  Statements  of  Cash  Flows                                                                    
(In  Canadian  dollars,  Unaudited)                                                                                        
                                                                                                                                                        
                                                                                      Three  months                    Six  months  
                                                                                  ended  June  30,            ended  June  30,  
                                                                                  2011            2010            2011            2010  
----------------------------------------------------------------------------
                                                                                        $                  $                  $                  $  
OPERATING  ACTIVITIES                                                                                                                
  Net  loss                                                          (75,459)  (111,939)  (142,983)  (232,845)
                                                                                                                                                        
  Add  items  not  affecting  cash:                                                                                            
    Stock  based  compensation                            5,201          5,411        11,003        12,025  
    Amortization                                                    3,045        48,126          6,369        97,699  
  Changes  in  operating  assets  and                                                                                        
    liabilities  other  than  cash                  (40,093)    122,906        83,340      243,980  
----------------------------------------------------------------------------
CASH  FLOWS  FROM  OPERATING  ACTIVITIES  (107,306)      64,504      (42,271)    120,860  
----------------------------------------------------------------------------
                                                                                                                                                        
FINANCING  ACTIVITIES                                                                                                                
  Promissory  notes                                                    --      (12,004)              --      (20,968)
----------------------------------------------------------------------------
CASH  FLOWS  FROM  FINANCING  ACTIVITIES              --      (12,004)              --      (20,968)
----------------------------------------------------------------------------
                                                                                                                                                        
INVESTING  ACTIVITIES                                                                                                                
  Additions  to  property  and  equipment          (487)          (333)      (1,033)      (5,822)
  Additions  to  intangible  assets                (1,284)      (2,743)      (4,305)      (2,743)
----------------------------------------------------------------------------
CASH  FLOWS  FROM  INVESTING  ACTIVITIES      (1,771)      (3,076)      (5,338)      (8,565)
----------------------------------------------------------------------------
                                                                                                                                                        
INCREASE  IN  CASH                                          (109,077)      49,424      (47,609)      91,327  
CASH,  beginning  of  period                          139,712      148,021        78,244      106,118  
----------------------------------------------------------------------------
CASH,  end  of  period                                        30,635      197,445        30,635      197,445  
----------------------------------------------------------------------------

 
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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