ENGINEERING.com Incorporated: ENGINEERING.com Incorporated Announces Second Quarter 2009 Results

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^{Published in Business and Finance on Tuesday, July 21st 2009 at 9:45 GMT, Last Modified on 2009-07-21 09:45:32 by Market Wire}

TORONTO, ONTARIO--(Marketwire - July 21, 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 second quarter of 2009.

ENGINEERING.com revenue was $329,396 for the three months ended June 30, 2009, compared to revenue of $317,050 for the second quarter of 2008. The net loss for the three months ended June 30, 2009, totaled ($145,478) and ($0.00) per Common Share compared with a net loss of ($162,536) and ($0.01) for the same period a year ago. The increase in overall revenue is the net effect of an increase in Internet advertising revenues and a decline in related party revenue.

Operating losses measured as earnings before interest, taxes, amortization and stock-based compensation, was ($87,257) or $0.00 per Common Share for the second quarter of 2009 compared with an operating loss of ($97,180) or ($0.00) per Common Share for the three months ended June 30, 2008. The operating expenses in the latest period were $308,594, down from $323,380 in the second quarter a year earlier.

"During the second quarter our Internet advertising revenue more than tripled compared to the same period last year," said John Hayes, President of ENGINEERING.com. "We also experienced rapid increases in the number of visitors, page views and registration for services on our websites."

As at June 30, 2009, the Company had a cash balance of $383,412 compared to a cash balance of $389,057 as at June 30, 2008.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE:EGN) is the leading network for the engineering community, offering free and fee-based services and software to manufacturers, design consultants and engineering professionals 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, 2009 December 31, 2008
ASSETS
Current Assets
--------------
 Cash 383,412 311,988
 Accounts Receivable 120,127 189,109
 Prepaid Expenses and Deposits 40,746 29,707
 -----------------------------------
 Total Current Assets 544,285 530,804
 -----------------------------------

 Capital Assets, net 27,152 29,865
 Intangible Assets, net 502,261 591,528
 -----------------------------------
 TOTAL ASSETS 1,073,698 1,152,197
 -----------------------------------
 -----------------------------------

LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
-------------------
 Accounts Payable & Accrued Liabilities 697,963 787,594
 Deferred Income 92,033 84,247
 Promissory notes - short-term 55,575 58,464
 -----------------------------------
 Total current liabilities 845,571 930,305
 -----------------------------------

 Promissory notes - long-term - 28,971
 -----------------------------------
 TOTAL LIABILITIES 845,571 959,276
 -----------------------------------
 -----------------------------------

SHAREHOLDERS EQUITY
 Share Capital 15,113,752 14,759,008
 Contributed Surplus 413,059 392,411
 Deficit (15,298,684) (14,958,498)
 -----------------------------------
 TOTAL SHAREHOLDERS EQUITY 228,127 192,921
 -----------------------------------

 -----------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,073,698 1,152,197
 -----------------------------------
 -----------------------------------


Engineering.Com
Statements of Operations and Deficit
(Unaudited) Three months Three months
 ended ended
 June 30, 2009 June 30, 2008

REVENUE 329,396 317,050
COST OF SALES 108,059 90,850
 -----------------------------------
GROSS PROFIT 221,337 226,200

GROSS PROFIT % 67.2% 71.3%

EXPENSES (INCOME)
 Salaries & benefits 133,931 160,318
 Marketing expenses 22,579 13,950
 Development costs 67,166 55,934
 General & Administrative 84,918 93,178
 -----------------------------------
 308,594 323,380
 -----------------------------------

 Operating Income (Loss) (EBITDA)
 before under noted items: (87,257) (97,180)

 Stock based compensation (9,061) (16,611)
 Amortization Expense (49,160) (48,745)
 -----------------------------------
 (58,221) (65,356)
 -----------------------------------

 -----------------------------------
 NET LOSS (145,478) (162,536)
 -----------------------------------
 -----------------------------------

 BASIC AND DILUTED LOSS PER SHARE (0.00) (0.01)

 Weighted Average Number of Common Shares
 (basic and diluted) 36,870,623 29,496,499

Consolidated Statements of Deficit 
 -----------------------------------
 DEFICIT, beginning of period (15,153,206) (14,543,603)
 -----------------------------------
 Net Loss (145,478) (162,536)
 DEFICIT, end of period (15,298,684) (14,706,139)
 -----------------------------------
 -----------------------------------


Engineering.Com Inc.

Cash Flow Statements
(Unaudited) 
 Three months Three months
 ended ended
 June 30, 2009 June 30, 2008

OPERATING ACTIVITIES

 Net Loss (145,478) (162,536)
 ADD - Items not affecting cash
 Stock based compensation 9,061 16,611
 Amortization 49,160 48,745
 Changes in operating assets and
 liabilities other than cash 56,292 227,929
 -----------------------------------
 CASH FLOWS FROM OPERATING ACTIVITIES (30,965) 130,749
 -----------------------------------

FINANCING ACTIVITIES

 Promissory notes (19,863) (12,969)
 Proceeds of share issuance (2,962) -
 -----------------------------------
 CASH FLOWS FROM FINANCING ACTIVITIES (22,825) (12,969)
 -----------------------------------

INVESTING ACTIVITIES

 Fixed Assets (3,271) (3,523)
 -----------------------------------
 CASH FLOWS FROM INVESTING ACTIVITIES (3,271) (3,523)

Net increase (decrease) in cash (57,061) 114,257

CASH, beginning of period 440,473 274,800

 -----------------------------------
CASH, end of period 383,412 389,057
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