ENGINEERING.com Announces Q4 and FY 2006 Results

TORONTO, ONTARIO -- (MARKET WIRE) -- Mar 21, 2007 -- ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the ENGINEERING.com online resource and business for engineers today announced its financial results for the fourth quarter and year ended December 31, 2006.

ENGINEERING.com revenue was $2,295,301 for the fiscal year 2006, representing a 30% increase compared to revenue of $1,759,077 for the year 2005. Revenue for the three months ended December 31, 2006 was $563,969 compared to $529,855 for the fourth quarter of 2005. The net loss for the year ended December 31, 2006, totaled ($262,090) and ($0.01) per Common Share compared with a net loss of ($631,858) and ($0.02) for the same period a year ago.

Operating income (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was $20,253 or $0.00 per Common Share for the fourth quarter of 2006 compared with a operating loss of ($111,468) or ($0.00) per Common Share for the three month period ended December 31, 2005. Operating income for fiscal 2006 was $30,477 or $0.00 per Common Share compared to an operating loss of ($535,664) or ($0.02) per Common Share for fiscal 2005. The operating expenses in the latest period were $354,683 and for the year were $1,523,000 compared to $451,586 for the fourth quarter a year earlier and $1,698,295 for fiscal 2005.

The increase in revenues is attributed to both the full year impact of the Company's outsourcing services provided to RAND Worldwide, which began in July 2005, and an increase in sales of engineering software and services to the commercial and education markets in North America. These engineering solutions are sold on an annual basis such that customers typically make these purchases each year.

"We are pleased to report both increasing revenues and decreasing operating expenses during the year. Our customer base for engineering solutions continues to grow, which bodes well for future periods as the 2006 sales come up for renewal," said John Hayes, President of ENGINEERING.com. "During the fourth quarter of 2006 we also launched a number of new services to support our online community of engineers. I look forward to reporting on the growth of that community in 2007."

As at December 31, 2006, the Company had a cash balance of $187,190 compared to a cash balance of $179,347 as at December 31, 2005.

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

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 Incorporated
Balance Sheets

(Cdn. $)

                                             (audited)            (audited)
                                                As at                As at
                                    December 31, 2006    December 31, 2005
---------------------------------------------------------------------------
ASSETS
Current Assets
 Cash                                         187,190              179,347
 Accounts Receivable                          209,012              148,041
 Prepaid Expenses and Deposits                 55,938               60,258
 Due from Related Parties                     232,470              204,327
 Notes Receivable - Short Term                     --              296,363
---------------------------------------------------------------------------
  Total Current Assets                        684,610              888,336

 Property and Equipment, net                   32,300               55,289
 Intangible Assets, net                       948,598            1,127,134
---------------------------------------------------------------------------
  TOTAL ASSETS                              1,665,508            2,070,759
---------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
-----------
Current Liabilities
 Accounts Payable and Accrued Liabilities     511,706              504,964
 Deferred Revenue                              30,725               76,680
 Promissory Note - Short-term                 160,812              246,887
---------------------------------------------------------------------------
  Total Current Liabilities                   703,243              828,531

 Promissory Note - Long Term                  155,763              250,935

---------------------------------------------------------------------------
  TOTAL LIABILITIES                           859,006            1,079,466
---------------------------------------------------------------------------

SHAREHOLDERS' EQUITY
--------------------
 Share Capital                             14,759,008            14,759,008
  Contributed  Surplus                                                    268,314                            191,015
  Deficit                                                                    (14,220,820)                  (13,958,730)
---------------------------------------------------------------------------
    TOTAL  SHAREHOLDERS'  EQUITY                                    806,502                            991,293
---------------------------------------------------------------------------

---------------------------------------------------------------------------
    TOTAL  LIABILITIES  AND  SHAREHOLDERS'
      EQUITY                                                                      1,665,508                        2,070,759
---------------------------------------------------------------------------



ENGINEERING.com  Incorporated
Statements  of  Income

(Cdn.  $)
                                      (unaudited)        (unaudited)            (audited)            (audited)
                                  Three  Months      Three  Months                      Year                      Year
                                                Ended                    Ended                    Ended                    Ended
                                Dec.  31,  2006    Dec.  31,  2005    Dec.  31,  2006    Dec.  31,  2005
---------------------------------------------------------------------------

Revenue                              563,969                529,855            2,295,301            1,759,077
Cost  of  Sales                  189,033                189,737                741,824                596,446
---------------------------------------------------------------------------
GROSS  PROFIT                    374,936                340,118            1,553,477            1,162,631

Expenses
  Salaries  &
    Benefits                        194,574                253,526                835,444                962,784
  Marketing
    Expenses                            3,772                  10,600                  10,533                  39,529
  Development
    Costs                                72,309                  65,648                277,876                218,983
  General  &
    Administrative              84,028                121,812                399,147                476,999
---------------------------------------------------------------------------
                                            354,683                451,586            1,523,000            1,698,295
---------------------------------------------------------------------------

Operating
  Income/(Loss)
  before  Under-
  noted  Items:                    20,253              (111,468)                30,477              (535,664)
    Disposal  of
      Capital  Assets                    --                158,936                          --                158,936
    Stock  Based
      Compensation              (15,955)              (22,748)              (77,299)              (64,760)
    Amortization
      Expense                        (51,823)              (67,469)            (220,266)            (190,370)
    Other  income
      -  tax  recovery          (11,002)                        --                    4,998                          --
---------------------------------------------------------------------------
Net  Loss                            (58,527)              (42,749)            (262,090)            (631,858)
---------------------------------------------------------------------------

Basic  and
  Diluted  (Loss)
  per  Share                            (0.00)                  (0.00)                  (0.01)                  (0.02)

Weighted  Average
  Number  of  Common
  Shares  (basic
  and  diluted)            29,496,499          29,496,499          29,496,499          28,466,201
---------------------------------------------------------------------------

Consolidated
  Statements  of
  Deficit
---------------------------------------------------------------------------
    Deficit,
      beginning
      of  period            (14,162,293)      (13,915,981)      (13,958,730)      (13,326,872)
---------------------------------------------------------------------------
    Net  Income
      (Loss)                          (58,527)              (42,749)            (262,090)            (631,858)
    Deficit,
      end  of
      period                  (14,220,820)      (13,958,730)      (14,220,820)      (13,958,730)
---------------------------------------------------------------------------
---------------------------------------------------------------------------



ENGINEERING.com  Incorporated
Cash  Flow  Statements

(Cdn.  $)
                                      (unaudited)        (unaudited)            (audited)            (audited)
                                  Three  Months      Three  Months                      Year                      Year
                                                Ended                    Ended                    Ended                    Ended
                                Dec.  31,  2006    Dec.  31,  2005    Dec.  31,  2006    Dec.  31,  2005
---------------------------------------------------------------------------

OPERATING
  ACTIVITIES

  Net  Income
    (Loss)                            (58,525)              (42,749)            (262,090)            (631,858)
    ADD  -  Items
      Not  Affecting
      Cash
        Stock  Based
          Compensation            15,955                  22,748                  77,299                  64,760
        Amortization              49,105                  67,469                217,549                190,370
    Changes  in
      operating
      assets  and
      liabilities
      other  than
      cash                                      586                (56,872)            (124,007)              115,226

---------------------------------------------------------------------------
    CASH  FROM
      OPERATING
      ACTIVITIES                      7,121                  (9,404)              (91,249)            (261,502)
---------------------------------------------------------------------------

FINANCING
  ACTIVITIES

    Promissory
      Notes                            (64,396)              (24,283)            (178,530)              (36,426)

---------------------------------------------------------------------------
    CASH  FROM
      FINANCING
      ACTIVITIES                  (64,396)              (24,283)            (178,530)              (36,426)
---------------------------------------------------------------------------

INVESTING
  ACTIVITIES
    Note  Receivable            74,091                  74,091                296,363                308,711
    Additions  to
      Property  and
      Equipment                    (10,258)                (1,774)              (18,741)                (7,775)
    Additions  to
      Intangible
      Assets                                    --                          --                          --                (54,883)

---------------------------------------------------------------------------
    CASH  FROM
      INVESTING
      ACTIVITIES                    63,832                  72,317                277,622                246,053
---------------------------------------------------------------------------

Net  Increase
  (Decrease)  in
  Cash                                      6,557                  38,630                  (7,843)              (51,875)

CASH,  beginning
  of  period                        180,633                140,717                179,347                231,222
---------------------------------------------------------------------------

CASH,  end
  of  period                        187,190                179,347                187,190                179,347
---------------------------------------------------------------------------

 

1 | 2  Next Page »



Review Article Be the first to review this article
SolidCAM: Program your CNCs directly inside your existing CAD system.


Featured Video
Editorial
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
Re-Use Your CAD: The ModelCHECK Handbook
Jobs
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
Senior Structural Engineer for Design Everest at San Francisco, CA
GIS Analyst II for Air Worldwide at Boston, MA
Upcoming Events
Design & Manufacturing, Feb 7 - 9, 2017 Anaheim Convention Center, Anaheim, CA at Anaheim Convention Center Anaheim CA - Feb 7 - 9, 2017
Innorobo 2017 at Docks de Paris Paris France - May 16 - 18, 2017
Display Week 2017 at Los Angeles Convention Center 1201 S Figueroa St Los Angeles CA - May 21 - 26, 2017



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy Advertise