TORONTO, ONTARIO--(Marketwire - May 11, 2012) - Cyberplex Inc. (TSX:CX) a leader in performance-based online marketing and technology solutions today announced its financial results for the first quarter ended March 31, 2012. Total revenue for the quarter was $16.3 million, an increase from the $14.6 million recorded in the same quarter of 2011, and adjusted EBITDA loss for the quarter was approximately $341,000 as compared to income of $150,000 in the same period of 2011. The net loss for the quarter was $3.4 million as compared to a net loss of $3.6 million in the same year ago period.

Results for the First Quarter ended March 31, 2012

The Company generated revenue of $16.3 million, a 65% increase from the $9.9 million recorded in the previous quarter;
Adjusted EBITDA loss for the quarter was $ 341,000, as compared to an Adjusted EBITDA loss of $1.8 million in the previous quarter;
Excluding the operations of Tsavo Media, revenue for the quarter was $3.5 million and adjusted EBITDA was a loss of $622,000;
Net loss for the quarter was $3.4 million compared to a net loss of $4.6 million in the previous quarter; and
Cash flow from operations used $3.2 million in cash for the three months ended March 31, 2012, as compared to cash generated of $2.8 million for the same period in 2011.

On April 24, 2012, the Company announced the sale of Tsavo Media as part of a series of transactions valued at approximately $33 million (the "Transaction") in which the Company received cash proceeds of approximately $7.3 million and reduced its debt obligations from approximately $25.6 million to approximately $150,000. As a result of the Transaction, the Company's financial position has been improved significantly.

"The sale of Tsavo has resulted in much more stable and focused organization" said Geoffrey Rotstein, Chief Executive Officer of Cyberplex. "From both a financial and a strategic perspective, Cyberplex is now able to deliver quality digital marketing solutions to our clients without further distractions and has the financial resources required to fund sustainable growth in this exciting digital environment."

Non-IFRS Financial Measures

This press release includes a discussion of "Adjusted EBITDA," which is a non-IFRS financial measure. The Company defines Adjusted EBITDA as net loss from operations before; (a) depreciation of property and equipment and amortization of intangible assets; (b) stock-based compensation expense, (c) restructuring and acquisition costs, (d) Impairments of goodwill and intangible assets and other items net. Management uses Adjusted EBITDA as a measure of the Company's operating performance because it provides information related to the Company's ability to provide operating cash flows for acquisitions, capital expenditures and working capital requirements. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.

The non-IFRS financial measure is used in addition to and in conjunction with results presented in accordance with the Company's consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company's non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.

The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:

		Three months ended March 31,
(In thousands of Canadian dollars)		2012			2011

Net loss from operations	$	(2,875	)	$	(2,851	)
Add:
Depreciation of property and equipment		301			381
Amortization of intangible assets		2,008			2,210
Restructuring and acquisition expenses		221			263
Stock based compensation		4			147

Adjusted EBITDA	$	(341	)	$	150

Normal Course Issuer Bid

The Company also today announced that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by the Company of its previously announced intention to make a normal course issuer bid, commencing May 14, 2012 and expiring May 13, 2013. Under the bid, the board of directors has authorized the purchase of up to 11,913,232 of its common shares, representing approximately 10% of the "public float" of common shares. Daily purchases will be limited to 40,721 common shares, other than block purchase exceptions. Purchases will be made on the open market by Cyberplex through the facilities of the TSX in accordance with TSX requirements. The prices that Cyberplex will pay for any purchased common shares will be the market price of such shares on the TSX at the time of acquisition.

Cyberplex has 127,525,349 common shares issued and outstanding as of May 10, 2012, with a public float of 119,132,316 common shares. The Company has not purchased any of its common shares during the preceding 12 months pursuant to a normal course issuer bid.

The Company believes that from time to time the common shares of the Company have been trading at prices that do not fully reflect the underlying value of the Company. As a result, Cyberplex believes that its common shares are a good investment at its current and recent prices.

The Company may from time to time enter into a pre-defined plan with a registered investment dealer to allow for the repurchase of common shares at times when Cyberplex ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules, or otherwise. This plan will be adopted in accordance with applicable TSX rules and Canadian securities laws.

About Cyberplex

Cyberplex Inc. ([ www.cyberplex.com ]) is a North American leader in online publishing and customer acquisition strategies. The Company, through its subsidiaries, connects advertisers to their most relevant online customers and prospects. Cyberplex delivers targeted, high quality results through online, mobile and social initiatives that improve advertiser ROI, monetize the value of online properties, and build loyal online audiences.

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.

Cyberplex Inc.

Unaudited Interim Condensed Consolidated Statements of Financial Position

(In thousands of Canadian dollars)


	March 31, 2012		December 31, 2011

Assets
Current assets:
Cash and cash equivalents	$	1,260	$	4,050
Accounts receivable		12,099		8,769
Income taxes recoverable		-		31
Other current assets		7,046		6,907
		20,405		19,757

Non-current assets:
Restricted cash		2,317		2,357
Property and equipment		1,828		1,998
Intangible assets		19,673		22,069
Goodwill		358		365
		24,176		26,789

Total assets	$	44,581	$	46,546


Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$	15,202	$	13,707
Current portion of loans and borrowings		24,680		4,697
Current portion of deferred lease inducements		71		71
Deferred revenue		537		498
Income taxes payable		348		348
		40,838		19,321

Non-current liabilities:
Loans and borrowings		936		20,836
Deferred lease inducements		85		114
Deferred tax liabilities		548		603
		1,569		21,553

Shareholders' Equity		2,174		5,672

Total liabilities and Shareholders' equity	$	44,581	$	46,546

Cyberplex Inc.
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
Three months ended March 31, 2012 and 2011

			2012			2011


Revenue		$	16,325		$	14,603

Expenses:
	Publishing and advertising costs		11,493			8,916
	Employee compensation and benefits		3,175			3,904
	Other operating expenses		2,002			1,780
	Depreciation of property and equipment		301			381
	Amortization of intangible assets		2,008			2,210
	Restructuring costs		221			263
			19,200			17,454

Loss from operations			(2,875	)		(2,851	)

Finance income			(14	)		(19	)
Finance cost			595			892

Loss before income taxes			(3,456	)		(3,724	)

Income tax recovery:
	Deferred		55			130
			55			130
Loss for the period			(3,401	)		(3,594	)

Other comprehensive income (loss):
	Net change in fair value of available-for-sale financial assets		-			8
	Foreign currency translation adjustments to equity		(101	)		(299	)
	Other comprehensive income (loss) for the period, net of tax		(101	)		(291	)

Total comprehensive loss for the period		$	(3,502	)	$	(3,885	)

Loss per share:
	Basic	$	(0.03	)	$	(0.03	)
	Diluted	$	(0.03	)	$	(0.03	)



Cyberplex Inc.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)
Three months ended March 31, 2012 and 2011

				2012			2011

Cash flows from operating activities:
	Loss for the period		$	(3,401	)	$	(3,594	)
	Adjustments to reconcile net loss to net cash flows from operating activities:
		Depreciation of property and equipment		301			381
		Amortization of intangible assets		2,008			2,210
		Amortization of deferred lease inducements		(29	)		(29	)
		Share-based payments		4			147
		Foreign exchange loss (gain)		(3	)		130
		Finance (income) cost, net		526			873
		Deferred income tax recovery		(55	)		(130	)
		Restructuring cost		221			263
	Change in non-cash operating working capital			(2,811	)		2,523
	Cash generated from operating activities			(3,239	)		2,774
	Income taxes received			31
	Net cash from (used in) operating activities			(3,208	)		2,774

Cash flows from financing activities:
	Proceeds from bank operating facility			625			-
	Repayment of term loans			-			(2,176	)
	Repayment of finance lease			(16	)		-
	Interest paid			(72	)		(814	)
	Net cash from (used in) financing activities			537			(2,990	)

Cash flows from investing activities:
	Sale of short-term investments			-			1,294
	Interest income received			3			19
	Decrease in restricted cash and short-term investments			40			115
	Additions to property and equipment			(165	)		(97	)
	Additions to intangible assets			-			(11	)
	Net cash from (used in) investing activities			(122	)		1,320

Foreign exchange gain (loss) on cash held in foreign currency				3			(130	)

Increase (decrease) in cash and cash equivalents				(2,790	)		974

Cash and cash equivalents, beginning of period				4,050			5,192

Cash and cash equivalents, end of period			$	1,260		$	6,166

Contributing Sources

Market Wire

N@N

Cyberplex Reports First Quarter 2012 Results and Normal Course Issuer Bid

Cyberplex Reports First Quarter 2012 Results and Normal Course Issuer Bid