Cyberplex Announces Second Quarter Financial Results for 2006


TORONTO, Aug 14, 2006 - Cyberplex Inc. (TSX : CX) today announced financial results for its second quarter ended June 30, 2006.

Revenue for the three month period ended June 30, 2006 was $1.29 million up from the $1.22 million generated in the previous quarter and lower than the $1.86 million recorded during the same period a year ago.  The loss before amortization and interest income for the quarter was $54,000 compared to a $131,000 operating loss recorded in the previous quarter and the $55,000 of operating income generated during the same period a year earlier. 

Gross margin for the quarter was 50%, up from the 44% recorded in the previous quarter, and higher than the 45% recorded during the same period a year ago. The Company’s top five clients accounted for approximately 57% of the quarterly revenue with 40% of the revenue derived from clients in the United States. The company finished the quarter with cash and cash equivalents of $8.14 million compared to $5.13 million at June 30, 2005.

Two exciting developments previously disclosed during the quarter included:
1. the acquisition of WebAffairs Inc., which increased the Company’s recurring revenue, and
2. the closing of a $3.25 million private placement resulting in over $8.14 million in cash at quarter end.

The acquisition of WebAffairs was completed on June 07, 2006. As disclosed in the press release, WebAffairs is unique in its ability to offer complex technology solutions to small and midsized organizations through long term, recurring licenses by using internally built solutions and interfaces. As a result of these technologies, WebAffairs has been able to leverage their intellectual property into a recurring revenue model that the Company hopes to build upon in the coming quarters.

On June 29, 2006, Cyberplex successfully completed a non-brokered private placement for gross proceeds of $3.25 million. As a result of this financing, Cyberplex further strengthened its balance sheet with over $8.14 million in cash. As a result of this transaction, the Company is well positioned to continue searching for value creating acquisitions.

"The second quarter of 2006 was significant for Cyberplex.” said Geoffrey Rotstein, chief executive officer of Cyberplex. “By stabilizing the revenue, moving closer to operational profitability, completing an acquisition and closing a financing, we have positioned ourselves well for the remainder of 2006.”

About Cyberplex

Cyberplex Inc. (www.cyberplex.com) is a specialized team of management and technology consultants who are dedicated to helping clients enhance, automate and manage technology solutions that improve business processes.

With over 12 years of experience serving Fortune 1000 clients including Thomson, Atlantic Lottery Corporation, Advanced Micro Devices (AMD), Bank of Montreal (BMO), Scotiabank, SunTrust Banks and the Royal Bank of Canada, Cyberplex is frequently the firm of choice for business leaders looking for reliable solutions. Cyberplex serves clients across Canada and the US, and is headquartered in Toronto, Canada with offices in Arlington, Austin and Halifax.

 
This news release may contain certain forward-looking statements that reflect the current views and/or expectations of Cyberplex Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. Cyberplex disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.