Cyberplex (ticker: CX, exchange: Toronto Stock Exchange) News Release - 27 - March - 2006
Cyberplex Announces Fourth Quarter and Year-End Financial Results for 2005
TORONTO, March 27, 2006 - Cyberplex Inc. (TSX : CX) one of North America's leading technology consulting firms, today announced financial results for the fourth quarter and the year ended December 31, 2005.
Fourth quarter revenue of $1.39 million was lower than the $1.51 million in revenue from the previous quarter and down from the $2.38 million recorded during the same period a year ago. The loss for the quarter, before amortization, interest income, goodwill impairment and various one time accruals was $340,000, consistent with the loss of $335,000 realized in the previous quarter and down from the operating profit of $362,000 generated during the same period a year earlier.
Gross margin for the quarter was 42%, down from 46% generated in the previous quarter and the largest five accounts in the quarter accounted for approximately 61% of revenue. During the fourth quarter, 43% of the Company’s revenue was derived from accounts located in the United States.
Revenue for the year ended December 31, 2005 was $7.24 million, down 22% from the $9.37 million recorded during 2004. The loss before amortization and interest income was $628,000 compared with a profit of $1.56 million generated a year earlier, and the net loss for the year was $1.13 million, or $0.03 per share.
“2005 was a transitional year for Cyberplex” said Geoffrey Rotstein, President and CEO of Cyberplex. “Although the second half of the year was difficult, our balance sheet is strong. With over $5.28 million in cash and short-term investments, we believe we are in a position to take advantage of the opportunities that lie ahead. Our focus continues to be on growing the business profitably, and management is committed to building a stronger company, both through organic growth and selected acquisitions, that will deliver value to its shareholders”.
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.
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For more information please contact
Investor Relations, Cyberplex
416-597-8889
1-888-597-8889
investor@cyberplex.com
