Engineering.com Incorporated Announces Fourth Quarter & Fiscal 2008 Results

TORONTO, ONTARIO -- (MARKET WIRE) -- Apr 23, 2009 -- 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, 2008.

ENGINEERING.com revenue was $1,444,768 for the fiscal year 2008, compared to revenue of $2,214,221 for the year 2007. Revenue for the three months ended December 31, 2008 was $340,828 compared to $572,273 for the fourth quarter of 2007. The net loss for the year ended December 31, 2008 totaled ($520,253) and ($0.02) per Common Share compared with a net loss of ($217,425) and ($0.01) for the same period a year ago.

During 2007, the Company had revenues of $1,080,665 from the provision of services to Rand Worldwide, a former related party while corresponding revenues for 2008 declined to $279,305. All such transactions were terminated in September 2008 when Rand Worldwide ceased to be a related party to the Company.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($93,830) or $0.00 per Common Share for the fourth quarter of 2008 compared with a operating profit of $49,036 or $0.00 per Common Share for the three month period ended December 31, 2007. Operating loss for fiscal 2008 was ($278,935) or ($0.01) per Common Share compared to an operating profit of $58,804 or $0.00 per Common Share for fiscal 2007. The operating expenses in the latest period were $289,264 and for the year were $1,228,355 compared to $321,000 for the fourth quarter a year earlier and $1,412,958 for fiscal 2007.

"During 2008 the company's primary web site experienced a significant increase in page views and corresponding Internet advertising revenue," said John Hayes, President of ENGINEERING.com. "Sales gains in advertising and software were more than offset, however, by a decline in the IT services we provided to Rand Worldwide."

As at December 31, 2008, the Company had a cash balance of $311,988 compared to a cash balance of $288,916 as at December 31, 2007.

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. 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.


ENGINEERING.com Incorporated
Balance Sheets

(Cdn. $)

                                                    (audited)      (audited)
                                                       As at          As at
                                               Dec. 31, 2008  Dec. 31, 2007
----------------------------------------------------------------------------
ASSETS
Current Assets
 Cash                                                311,988        288,916
 Accounts Receivable                                 189,109        146,063
 Prepaid Expenses and Deposits                        29,707         58,044
 Due from Related Parties                                  -        330,557
----------------------------------------------------------------------------
  Total Current Assets                               530,804        823,580

 Property and Equipment, net                          29,865         29,567
 Intangible Assets, net                              591,528        770,063
----------------------------------------------------------------------------
  TOTAL ASSETS                                     1,152,197      1,623,210
----------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Current Liabilities
 Accounts Payable and Accrued Liabilities            787,594        768,878
 Deferred Revenue                                     84,247         70,745
 Promissory Note - Short-term                         58,464         47,582
----------------------------------------------------------------------------
  Total Current Liabilities                          930,305        887,205

 Promissory Note - Long Term                          28,971         69,179

----------------------------------------------------------------------------
 TOTAL LIABILITIES                                   959,276        956,384
----------------------------------------------------------------------------

SHAREHOLDERS' EQUITY
 Share Capital                                    14,759,008     14,759,008
 Contributed Surplus                                                                 392,411                346,063
  Deficit                                                                                  (14,958,498)      (14,438,245)
----------------------------------------------------------------------------
    TOTAL  SHAREHOLDERS'  EQUITY                                                  192,921                666,826
----------------------------------------------------------------------------

----------------------------------------------------------------------------
    TOTAL  LIABILITIES  AND  SHAREHOLDERS'  EQUITY              1,152,197            1,623,210
----------------------------------------------------------------------------



ENGINEERING.com  Incorporated
Statements  of  Income

(Cdn.  $)                        (unaudited)        (unaudited)            (audited)            (audited)
                                    Three  Months      Three  Months                      Year                      Year
                                                  Ended                    Ended                    Ended                    Ended
                                  Dec.  31,  2008    Dec.  31,  2007    Dec.  31,  2008    Dec.  31,  2007
----------------------------------------------------------------------------
Revenue                                340,828                572,273            1,444,768            2,214,221
Cost  of  Sales                    145,394                202,237                495,348                742,459
----------------------------------------------------------------------------
GROSS  PROFIT                      195,434                370,036                949,420            1,471,762
----------------------------------------------------------------------------

Expenses
  Salaries  &
    Benefits                          163,579                152,057                643,082                727,687
  Marketing
    Expenses                            10,946                    6,302                  38,556                  24,352
  Development
    Costs                                  72,212                  58,197                233,187                238,126
  General  &
    Administrative                42,527                104,444                313,530                422,793
----------------------------------------------------------------------------
                                              289,264                321,000            1,228,355            1,412,958
----------------------------------------------------------------------------

Operating
  Income/(Loss)
  before
  Under-noted  Items:        (93,830)                49,036              (278,935)                58,804
  Stock  Based
    Compensation                      3,444                (13,348)              (46,348)              (77,749)
  Amortization
    Expense                            (48,970)              (48,405)            (194,970)            (198,480)
----------------------------------------------------------------------------

Net  Loss                            (139,356)              (12,717)            (520,253)            (217,425)

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

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

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

Consolidated
  Statements  of
  Deficit
----------------------------------------------------------------------------
  Deficit,
    beginning
    of  period                (14,819,142)      (14,425,529)      (14,438,245)      (14,220,820)
----------------------------------------------------------------------------
  Net  Income  (Loss)        (139,356)              (12,717)            (520,253)            (217,425)
  Deficit,  end  of
    period                      (14,958,498)      (14,438,245)      (14,958,498)      (14,438,245)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


ENGINEERING.com  Incorporated
Cash  Flow  Statements

(Cdn.  $)

                                        (unaudited)        (unaudited)            (audited)            (audited)
                                    Three  Months      Three  Months                      Year                      Year
                                                  Ended                    Ended                    Ended                    Ended
                                  Dec.  31,  2008    Dec.  31,  2007    Dec.  31,  2008    Dec.  31,  2007
----------------------------------------------------------------------------

OPERATING
  ACTIVITIES
  Net  Loss                          (139,356)              (12,717)            (520,253)            (217,425)
    ADD  -  Items  Not
      Affecting  Cash
      Stock  Based
        Compensation                (3,444)                13,348                  46,348                  77,749
      Amortization                  48,970                  48,404                194,970                198,480
  Changes  in
    operating  assets
    and  liabilities
    other  than  cash            126,119                  69,613                348,066                259,948

----------------------------------------------------------------------------
    CASH  FROM
      OPERATING
      ACTIVITIES                      32,289                118,648                  69,131                318,752
----------------------------------------------------------------------------

FINANCING
  ACTIVITIES

      Promissory  Notes          (1,730)              (11,355)              (29,326)            (199,814)

----------------------------------------------------------------------------
    CASH  FROM
      FINANCING
      ACTIVITIES                      (1,730)              (11,355)              (29,326)            (199,814)
----------------------------------------------------------------------------

INVESTING
  ACTIVITIES
  Additions  to
    Property  and
    Equipment                              (446)                (1,899)              (16,733)              (17,212)

----------------------------------------------------------------------------
    CASH  FROM
      INVESTING
      ACTIVITIES                          (446)                (1,899)              (16,733)              (17,212)
----------------------------------------------------------------------------

Net  Increase
  (Decrease)  in  Cash          30,113                105,394                  23,072                101,726

CASH,  beginning
  of  period                          281,875                183,522                288,916                187,190
----------------------------------------------------------------------------

CASH,  end  of  period        311,988                288,916                311,988                288,916
----------------------------------------------------------------------------

 

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