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Espial Reports 2010 First Quarter Results

^{Published on 2010-05-14 13:20:08 - Market Wire}
 

 HIGHLIGHTS: - First quarter revenue of $3.8 million, an increase of 23% from last year and a record for the Company - EBITDA income of $0.1 million compare to a loss of $0.8 million last year - Introduced Espial TV Browser product to enable Internet video on Connected TVs and Set-Top Boxes, a market that is expected to grow to nearly 243 million units annually by 2013 - Announced that Jilin Cable Network, a major Chinese cable operator providing analog and digital TV services to 3 million subscribers selected Espial MediaBase Video-on-Demand Platform to power their Video-On-Demand (VOD), Network Personal Video Recorder (NPVR) and Timeshift-TV (TSTV) services 

 - Toll Free line (Canada/US) - 888-231-8191 - Local/International - 647-427-7450 

 - Toll line: 416-849-0833 - passcode: 75163985 - Toll free line: 1-800-642-1687- passcode: 75163985 

 March 31 March 31 2010 2009 ---------------------------- (3 months) (3 months) (Unaudited) (Unaudited) Net loss and Comprehensive loss ($398,191) ($1,182,302) Add Stock compensation 80,000 53,000 Depreciation of property and equipment 53,785 65,060 Amortization of intangibles 283,083 283,441 ------------------------------------------------------------------------- 18,677 (780,801) ------------------------------------------------------------------------- Less (add) Interest income (expense) (3,976) 32,065 Foreign exchange gain (loss) (111,268) (3,602) ---------------------------- ---------------------------- Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization $133,921 ($809,264) ---------------------------- ---------------------------- ESPIAL GROUP INC. Consolidated Balance Sheets (in Canadian dollars) ------------------------------------------------------------------------- March 31, December 31, 2010 2009 (unaudited) (audited) ------------------------------------------------------------------------- CURRENT ASSETS Cash and cash equivalents $ 8,156,978 $ 8,711,699 Short-term investments 122,246 122,246 Accounts receivable 2,819,606 1,989,367 Investment tax credits receivable 375,000 550,000 Prepaid expenses 327,948 178,003 ------------------------------------------------------------------------- $ 11,801,778 $ 11,551,315 Property & equipment $ 724,902 $ 767,451 Intangible assets 4,097,399 4,380,482 Goodwill 3,340,808 3,340,808 ------------------------------------------------------------------------- $ 19,964,887 $ 20,040,056 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CURRENT LIABILITIES Operating line $ 1,000,489 $ 500,044 Accounts payable and accrued liabilities 1,769,763 1,643,717 Deferred revenue 1,681,129 2,064,598 ------------------------------------------------------------------------- $ 4,451,381 $ 4,208,359 ------------------------------------------------------------------------- COMMITMENTS SHAREHOLDERS' EQUITY Share capital $ 74,859,576 $ 74,859,576 Warrants 164,435 164,435 Contributed surplus 10,648,844 10,568,844 Deficit (70,159,349) (69,761,158) ------------------------------------------------------------------------- $ 15,513,506 $ 15,831,697 ------------------------------------------------------------------------- $ 19,964,887 $ 20,040,056 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ESPIAL GROUP INC. Consolidated Statements of Loss and Comprehensive Loss (in Canadian dollars except share data) Three Months Ended ------------------------------------------------------------------------- March 31, March 31, 2010 2009 (unaudited) (unaudited) ------------------------------------------------------------------------- Revenue $ 3,793,983 $ 3,083,121 Cost of revenue 1,093,589 643,406 ------------------------------------------------------------------------- Gross margin 2,700,394 2,439,715 ------------------------------------------------------------------------- Expenses Sales and marketing 1,125,391 1,142,263 General and administrative 504,486 543,736 Research and development 936,596 1,562,980 Stock compensation expense 80,000 53,000 Depreciation of property and equipment 53,785 65,060 Amortization of intangible assets 283,083 283,441 ------------------------------------------------------------------------- 2,983,341 3,650,480 ------------------------------------------------------------------------- Loss before other income (expense) (282,947) (1,210,765) ------------------------------------------------------------------------- Other income (expense) Interest income (expense) (3,976) 32,065 Foreign exchange gain (loss) (111,268) (3,602) ------------------------------------------------------------------------- (115,244) 28,463 ------------------------------------------------------------------------- NET LOSS AND COMPREHENSIVE LOSS $ (398,191) $ (1,182,302) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net loss per common share - basic and diluted $ (0.03) $ (0.08) Weighted average number of common shares outstanding - basic and diluted 14,101,829 14,101,829