Cyberplex Inc. Reports An Outstanding Third Quarter 2008

Earnings per share of 1.2 cents while revenue more than doubles year-over-year
TORONTO, Wednesday, November 12, 2008/CNW/-Cyberplex Inc. (TSX: CX) a leader in web advertising solutions, online customer acquisition strategies and technology development, today announced record third-quarter results and its 8th consecutive quarter of revenue growth.  Cyberplex’s total revenue for the third quarter of 2008 was $11.0 million, an increase of 134% over the $4.7 million reported for third quarter of 2007.
Financial Highlights
•    Online advertising revenue, through the CX Digital Media division, increased by 172% to $9.9 million, compared to the same period in 2007
•    Earnings before amortization, interest and other items increased by 115%, to over $750,000, compared to the previous quarter
•    Net income increased by 207%, to over $633,000 for the quarter which translates into 1.2 cents a share
•    Sequential quarterly revenue growth of 16%
•    Positive operating cash flow of over $355,000 for the quarter
•    No outstanding debt
"It was another outstanding quarter,” said Geoffrey Rotstein, President and CEO, Cyberplex Inc. “Overall demand for our performance-based marketing solutions continues to grow and we are starting to demonstrate the significant operating leverage and profitability inherent within our business model.”
Third Quarter Highlights
•    Creation of an Integration Marketing Solutions team within the CX Digital Media division
•    Significant technology investment within CX Digital Media’s proprietary affiliate network, providing enhanced stability and scalability including a move to a tier one hosting facility
•    Recurring customers accounting for approximately 75% of CX Digital Media’s active customer base
•    Average revenue per customer, in the CX Digital Media division, grew by over 9% quarter-over-quarter
During the third quarter, the Company launched a new offering by creating a team that focuses solely on integrated marketing solutions.  The mandate of this team is to optimize the conversion potential for all campaigns that run through CX Digital Media’s Affiliate Network and to work with advertisers to best position their offers for online performance based marketing.  This team focuses on messaging, creative optimization, conversion optimization, usability, and provides insight into the overall competitive landscape associated within targeted verticals.   

“We believe that our third quarter and year-to-date results reflect the continued focus that we place on delivering measurable results to our clients,” Rotstein added. “Despite the difficult economic times, we have continued to deliver tremendous results and believe that our focus on performance based marketing positions us extremely well in the industry.”
Operational Results:
For the quarter ended September 30, 2008, the Company generated revenue of $11.0 million, an increase of $6.3 million or 134% when compared to the $4.7 million generated in the third quarter of 2007.  This increase resulted directly from the online advertising division, which generated $9.9 million in revenue and a year-over-year revenue growth rate of 172%.  Revenue from the technology services division of approximately $1.2 million grew by 18% from last quarter.
Gross profit for the quarter ended September 30, 2008 was $3.7 million resulting in a gross margin of 34% compared to $3.2 million or 34% gross margin last quarter.  Earnings before amortization, interest and other items was over $750,000, an increase of 115% over last quarter.  
Outlook:
As the Company continues to bolster its advertising division and develop its unique offers and proprietary technologies, the trend of greater operating leverage should continue.  Rotstein added, “Going forward, we expect to continue the momentum of revenue growth and maintain our profitability.”
As previously reported, the Company announced a Normal Course Issuer Bid.  “We believe that the common shares have been trading at prices that are below the underlying value of the Corporation,” said Isaac Osiel, CFO, Cyberplex Inc.  “As a result, we believe that the common shares are a great investment for the Company.”
Conference Call Details:
In conjunction with this announcement, Cyberplex will host a conference call today, Wednesday, November 12, 2008 at 4:30pm EST to discuss the results and the financial performance.  To access the call, please dial 888-892-3255. Please call five minutes prior to the call.

A replay of the conference call will be available as of 12:00pm EST the same day, until midnight November 31, 2008.  To access the replay dial 1-800-937-6305 followed by the passcode 741749.
About Cyberplex

Cyberplex Inc. (www.cyberplex.com) is a leader in providing web advertising solutions, online customer acquisition strategies and technology development.  The Company, through its subsidiaries, leverages its proprietary affiliate network, robust advertising relationships and experience, and technology design, development and solutions specialists to develop and implement web-based programs and solutions that deliver results.  

With over 14 years of experience serving Fortune 1000 clients including FTD, Xerox, Sony Canada, IAC, Atlantic Lottery Corporation, Vista Print, Aecon, Ontario Power Generation, Scotia Bank and the Royal Bank of Canada,  Cyberplex is frequently the firm of choice for business leaders looking for effective and reliable online solutions.  Cyberplex serves clients across Canada and the US, and is headquartered in Toronto, Canada with offices in San Diego and Halifax.


Forward-Looking Statements
This news release may contain forward-looking statements that are based on management’s current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements.  Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

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For more information please contact
Susie Ibbotson, Marketing & Communications, Cyberplex Inc.
416-260-4763
1-888-597-8889 ext. 4763
susie.ibbotson@cyberplex.com