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Aptilon Announces 2011 Second Quarter Results

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  Published in Science and Technology on Monday, August 29th 2011 at 18:21 GMT by Market Wire
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MONTREAL, Aug. 29, 2011 /CNW/ - Aptilon Corporation ("Aptilon" or the "Company") (TSXV: APZ), a leader in online access to, engagement and interaction with physicians and healthcare professionals on behalf of pharmaceutical and life sciences companies, today announced its financial results for the three-month period ended June 30, 2011. Financial references are in CDN dollars. Complete financial statements and MD&A are available on SEDAR at [ www.sedar.com ].

Financing Highlights:

• Successfully renegotiated the secured promissory note issued in September 2009 in connection with the purchase of substantially all the assets of Direct Medical Data, LLC and BLM Incorporated related to their healthcare marketing services. The original note in the amount of $27,200,000 provided for monthly installments, and a lump sum payment of approximately US$12,417,000 on September 15, 2012. The original note and associated lump sum payments were replaced by a new secured promissory note in the amount of US$21,750,000, being the balance due under the original note as of April 14, 2011. The new note bears interest at the rate of 6.9% per annum and is repayable in increasing monthly installments (ranging from US$226,000 for the first 9 months to US$600,000 for 11 of the last 12 months) from April 15, 2011 until December 15, 2015. It is secured and guaranteed in the same manner as the original note.
• Working capital improved by $2.0 million to ($0.08 million) from ($2.1 million) at December 31, 2010, primarily due to the above renegotiation of the long term debt

Operating Highlights:

• Completed transition of major clients of its latest product line updates and 'cloud' based services.
• Launched Aptilon Mobile to instantly connect pharmaceutical representatives and professionals with HCPs, including prescribing physicians, nurse practitioners and physician assistants via their smartphones
• Revenues reached $5.9 million, compared to $8.5 million in Q2 2010; YTD revenue $13.1 million
• Gross margin was $3.0 million in the three-month period, compared to $5.4 million in Q2 2009; gross margin YTD reached $7.0 million
• Operating expenses in the period decreased to $3.5 million from $4.0 million in the second quarter of 2010
• Net loss of ($1.4 million) for the quarter compared to a gain of $0.6 million in Q2 2010; YTD net loss reached ($2.0 million) compared to a net loss of ($0.1 million) in 2010. Net loss for the current quarterly period includes $1.1 million of non-cash items ($581 for depreciation and amortization, $48 for share-based compensation, and $514 for accreted interest) compared to a total of $1.6 million for the same period in 2010. YTD non-cash items total $2.6 million. 

The decline in revenue was attributed to the strengthening value of the Canadian dollar against the United Stated dollar; to certain pharmaceutical industry mergers during the preceding periods that caused specific legacy programs to be discontinued; and to delays in certain client internal legal and regulatory departments associated with key new business wins.

Updates to the Aptilon service platform initiated in the first half of the year are designed to increase future business opportunities to access, engage and interact with healthcare professionals via any channel and any device. Based upon early customer feedback, the Company believes that the impact of the new cloud-based service platform will be positive in the coming periods.

About Aptilon Corporation

Aptilon enables pharmaceutical, biotech and medical device companies to effectively reach, message, connect and interact with US physicians and healthcare professionals on the Internet and over mobile devices via multiple access channels. Its innovative service offerings provide targeted impressions and interactions through: video and mobile detailing, ReachNet℠ Physician Access Channel, the DMD database and permission-based email services. Top US pharmaceutical companies and respected healthcare organizations have adopted Aptilon's solutions to market to, engage and interact with leading healthcare practitioners. For more information, visit [ www.aptilon.com ].

ReachNet^SM is a service mark of Aptilon Corporation.

Forward-looking statements

This news release may contain forward-looking statements. 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.