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Aptilon Announces 2009 Second Quarter Financial Results

^{Published on 2009-08-28 13:45:22 - Market Wire}
 

 MONTREAL, Aug. 28 /CNW/ - Aptilon Corporation ("Aptilon" or the "Company") (TSX-V: APZ), a leader in online marketing to physicians, today announced its financial results for the three and six months ended June 30, 2009. Financial references are in CDN dollars unless otherwise indicated. Complete financial statements and MD&A are available on SEDAR at [ www.sedar.com ]. Q2 2009 Summary - Revenues reached $3.0 million, compared to $1.65 million in Q2 2008 - Gross profit totaled $2.2 million compared to $922,943 in Q2 2008 - Gross margin was 74% compared to 56% in Q2 2008 - Net loss totaled ($440,862) (including $433,048 in non-cash charges (1)) compared to ($2.1 million) (including $363,431 in non-cash charges (1)) in Q2 2008 "We continued to organically grow the business during the second quarter with revenues and gross profit showing sequential growth for the fourth consecutive quarter," said Dr. Roger Korman, Chairman and CEO of Aptilon. "This growth is due in large part to the traction we have earned with our top US pharmaceutical client companies. The access to physicians our multichannel media service offers these pharmaceutical clients is a novel method to engage physicians in meaningful interactions. As these clients recognize the benefit of our AxcelRx(SM) service in the earlier stage pilot projects and single brand programs we are able to transition them to multi-brand and enterprise-level programs. The multi-brand enterprise agreements that we have secured with top US pharmaceutical companies are a long-term source of recurring revenue and future growth. We are now seeing the measurable results of these efforts which will continue in the coming quarters." Financial Review For the second quarter of 2009 revenues increased to $3,075,716 compared to $1,650,977 for the same period a year ago, an increase of 86%. Revenues for the first half of 2009 totaled $5,877,636 compared to $3,674,864 for the first half of 2008, an increase of 60%. Increased revenue in both periods reflects a broader base of customers and customer initiatives moving successfully from the pilot stage to a more operational mode. Gross profit for the three-month period ended June 30, 2009 was $2,290,271 or 74% of revenue compared to $922,943 or 56% of revenue for the three months ended June 30, 2008. For the six months ended June 30, 2009 gross profit increased to $4,237,163 or 72% of revenue compared to $2,266,576 or 62% of revenue for the same period in 2008. Gross margins for both periods increased mainly as a result of increased operational efficiencies combined with a greater number of projects. Sales and marketing expenses for the second quarter of 2009 totaled $1,272,432 compared to $1,507,765 for the second quarter of 2008, a decrease of 16%. For the six-month period ended June 30, 2009, sales and marketing expenses totaled $2,532,068 compared to $2,952,443 in the same period of 2008, a decrease of 14%. General and administrative ("G&A") expenses for the second quarter of 2009 decreased by 1% to $795,064 compared to $805,452 in the second quarter of 2008. G&A expenses for the first six months of 2009 totaled $1,431,315 compared to $1,526,751 in same period of 2008. Overall, operating expenses decreased 13%, from $2,983,264 for the three months ended June 30, 2008 to $2,609,086 for the three months ended June 30, 2009. For the six months ended June 30 2009, the reduction in operating expenses amounted to $813,955 or 14% compared to the six months ended June 30, 2008. The decrease in expenses is due to ongoing Company-wide efforts to improve efficiency. Cash flows used in operating activities totaled $560,897 for the three-month period ended June 30, 2009. Once adjusted for the non-cash items (amortization and stock-based compensation), the net loss of $440,862 is reduced to $16,324, indicating operations close to a cash-flow break-even point. Net loss for the three months ended June 30, 2009, was ($440,862) or ($0.0026) per share compared to ($2,091,271) or ($0.0124) per share for the comparable period a year ago. Net loss for the first half of 2009 was ($914,629) or ($0.0054) compared to (3,490,582) or ($0.0207) per share in the same period a year ago. The reduction reflects the successful implementation of a plan to streamline operations and reduce expenses combined with the increase in revenue for both periods. As at June 30, 2009, the Company had working capital of $2,134,027 including cash and cash equivalents of $708,655 compared to $2,370,848 in working capital, which included cash and cash equivalents of $1,310,579, at December 31, 2008. The Company had 184,373,944 common shares outstanding (fully diluted) at June 30, 2009. AxcelRx(SM) and ReachNet(SM) are service marks of Aptilon Corporation. (1) Non-cash charges consist of amortization and stock based compensation About Aptilon Corporation ------------------------- Aptilon enables pharmaceutical, biotech and medical device companies to effectively reach and interact with physicians via the Internet through its innovative AxcelRx(SM) live video detailing platform which hosts promotional, peer selling and sales and marketing programs. Top US pharmaceutical companies have adopted Aptilon's AxcelRx(SM) solution for their sales representatives to reach leading physicians on-line. Aptilon provides the necessary infrastructure for pharmaceutical companies to build physician awareness, understanding, and product preference during all stages of a product's life cycle; from pre-launch education through end stage support. For more information, visit [ www.aptilon.com ]. Forward-looking statements -------------------------- This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Aptilon. A number of factors could cause actual events, performance or results to differ materially from the events performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Aptilon does not assume any obligation to update or revise them to reflect new events or circumstances. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. %SEDAR: 00022191EF 

For further information: Denis Martineau, President, Aptilon Corporation, 1-888-544-8866, [ investors@aptilon.com ]; Ross Marshall, Investor Relations, The Equicom Group, (416) 815-0700 ext. 238, [ rmarshall@equicomgroup.com ]; For U.S. Media: Mark Gleason, Aptilon Corporation, (847) 331-8628, [ mgleason@aptilon.com ]; For Canadian Media: Coriena Riendeau, Aptilon Corporation, 1-888-544-8866, [ criendeau@aptilon.com ]