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Espial Group Inc. Reports Third Quarter 2009 Results

^{Published on 2009-11-05 13:06:08 - Market Wire}
 

 Q3 HIGHLIGHTS: - Announced Com Hem AB, Sweden's largest cable operator with 1.8 million homes served, has launched its next generation digital TV and VOD services - named Com Hem On Demand - using Espial's Evo TV Service Platform. - Announced Chongqing Cable TV Network, a China based cable provider that provides analog and digital TV services to 4.2 million subscribers, has selected Espial MediaBase to power their on-demand services including video-on-demand, network PVR and timeshift TV services. - Released Espial MediaBase 9.0 video-on-demand platform with dramatically improved capture and streaming performance, lower power consumption with Solid State Storage and improved back office support for cable operators. - Added eight new service provider customers. 

 The Company will be hosting a conference call to discuss the third quarter financial results on November 5, 2009 at 5:15 PM Eastern Standard Time (EST). The phone number to join the results discussion is: - Toll line - 416 644 3431 - Toll free line - 877 974 0450 The playback for the call will be available until Saturday, December 5, 2009 at the following numbers and passcode: - Toll line: 416-640-1917 - passcode: 4180391 followed by the number sign. - Toll free line: 877-289-8525 - passcode: 4180391 followed by the number sign. 

 September September 30, 2009 30, 2008 ------------------------- (3 months) (3 months) (Unaudited) (Unaudited) Net loss and Comprehensive loss $ (993,442) $ (875,391) Add Stock compensation 75,000 47,300 Depreciation of property and equipment 74,274 72,359 Amortization of intangibles 282,365 249,769 ------------------------------------------------------------------------- (561,803) (505,963) ------------------------------------------------------------------------- Less (add) Interest income 13,103 88,003 Foreign exchange gain (loss) (95,298) (31,460) -------------------------- Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization $ (479,608) $ (562,506) -------------------------- -------------------------- ESPIAL GROUP INC. Consolidated Balance Sheet (in Canadian dollars) ------------------------------------------------------------------------- September 30, December 31, 2009 2008 (unaudited) (unaudited) ------------------------------------------------------------------------- CURRENT ASSETS Cash and cash equivalents $ 7,910,447 $ 10,476,443 Short-term investments 122,246 122,246 Accounts receivable 3,166,330 2,269,251 Investment tax credits receivable 475,000 363,424 Prepaid expenses 201,056 209,974 ------------------------------------------------------------------------- 11,875,079 13,441,338 Property & equipment 787,318 899,734 Intangible assets 4,663,565 4,338,814 Goodwill 3,340,808 4,489,077 ------------------------------------------------------------------------- $ 20,666,770 $ 23,168,963 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CURRENT LIABILITIES Operating line $ 800,214 $ - Accounts payable and accrued liabilities 1,438,454 2,229,241 Deferred revenue 1,860,403 1,270,407 ------------------------------------------------------------------------- 4,099,071 3,499,648 ------------------------------------------------------------------------- COMMITMENTS SHAREHOLDERS' EQUITY Share capital 74,859,576 74,859,576 Warrants 164,435 164,435 Contributed surplus 10,427,143 10,249,143 Deficit (68,883,455) (65,603,839) ------------------------------------------------------------------------- 16,567,699 19,669,315 ------------------------------------------------------------------------- $ 20,666,770 $ 23,168,963 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ESPIAL GROUP INC. Consolidated Statement of Operations and Comprehensive Loss (in Canadian dollars except share data) Three Months Ended Nine Months Ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 (unaudited) (unaudited) (unaudited) (unaudited) ------------------------------------------------------------------------- Revenue $ 2,923,521 $ 3,729,476 $ 9,117,045 $ 6,831,237 Cost of revenue 618,372 1,039,177 2,028,714 2,223,208 ------------------------------------------------------------------------- Gross margin 2,305,149 2,690,299 7,088,331 4,608,029 ------------------------------------------------------------------------- Expenses Sales and marketing 1,073,955 1,409,766 3,188,495 3,871,328 General and administrative 461,387 830,153 1,516,123 1,799,489 Research and development 1,250,691 1,012,886 4,146,014 2,899,393 Stock compensation expense 75,000 47,300 178,000 44,800 Depreciation of property & equipment 74,177 72,359 213,631 201,595 Amortization of intangible assets 282,365 249,769 849,249 249,769 ------------------------------------------------------------------------- 3,217,575 3,622,233 10,091,512 9,066,374 ------------------------------------------------------------------------- Loss before other income (expense) (912,426) (931,934) (3,003,181) (4,458,345) ------------------------------------------------------------------------- Other income (expenses) Interest income 12,996 88,003 63,576 334,964 Foreign exchange gain (loss) (94,012) (31,460) (340,011) 80,052 ------------------------------------------------------------------------- (81,016) 56,543 (276,435) 415,016 ------------------------------------------------------------------------- Net loss and comprehensive loss (993,442) (875,391) (3,279,616) (4,043,329) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net loss per common share - basic and diluted $ (0.07) $ (0.06) $ (0.23) $ (0.38) Weighted average number of common shares- basic and diluted 14,101,829 13,583,109 14,101,829 10,757,789