Cyberplex Inc. (TSX:CX) a leader in building and promoting on-line business solutions, today announced its financial results for the second quarter ended June 30, 2007.

Revenue for the three month period ended June 30, 2007 was $4.44 million up 243% from the $1.29 million generated a year earlier and an increase of 46% from the $3.04 million recognized in the previous quarter.  During the quarter, the Company invested heavily in its sales and marketing initiatives which helped generate the revenue growth and set the foundation for future performance.  On an operational basis, the loss before amortization and interest income for the quarter was $4,000 compared to a $54,000 operating loss for the same period a year earlier and a loss of $153,000 generated in the previous quarter.  Included in this figure for the quarter was a foreign exchange loss of $130,000, a onetime non-recurring charge of $41,000, and stock-based compensation expense of $30,000. 

Gross margin for the quarter was 42%, up from the 36% recorded in the previous quarter, primarily resulting from the improved margins realized from our advertising division.  The Company’s top five clients accounted for approximately 34% of the quarterly revenue with 78% of the revenue derived from clients in the United States.  The company finished the quarter with cash and cash equivalents of $2.02 million compared to $3.12 million at March 31, 2007.

"We are very pleased with our performance this quarter and the overall growth for 2007,” said Geoffrey Rotstein, chief executive officer of Cyberplex.  “Our strategy of building a recurring revenue model is unfolding successfully and our increased investments in sales and marketing are helping fuel our growth to establish a critical mass across the organization.”

Operational Results:

Revenue from on-line advertising grew significantly on sequential basis and year over year.  For the three month period ended June 30, 2007, revenue from on-line advertising increased to $3.39 million, compared to the $2.04 recorded in the previous quarter, an increase of $1.35 million.  Gross margin for the period was 41%, an increase from the 35% realized in the previous quarter.  Revenue from technology services of $1.05 million was up from the $1.00 million recorded during the previous quarter.  Gross margin for the quarter also increased to 43%, up from 40% in the previous quarter.  

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.

 
For more information please contact
Investor Relations, Cyberplex
416-597-8889
1-888-597-8889
investor@cyberplex.com