Click here to close now.

SYS-CON MEDIA Authors: Carmen Gonzalez, Liz McMillan, Kevin Jackson, Peter Silva, Greg Wind

News Feed Item

EQ Inc. Reports Second Quarter Results

TORONTO, ONTARIO -- (Marketwired) -- 08/07/14 -- EQ Inc. (TSX:EQ) ("EQ Works"), a leader in audience targeting for mobile, social, video and display advertising, today announced its financial results for the second quarter-ended June 30, 2014. Total revenue from operations for the quarter was $1.1 million, a decrease from the $1.9 million recorded in the second quarter of 2013. The adjusted EBITDA loss for the quarter was approximately $891,000, as compared to a loss of $591,000 in the second quarter of 2013.

"This past quarter we continued to add new clients, deliver great campaign results for our existing clients and bring new and innovative solutions to the Canadian market, yet our financial performance was disappointing," said Geoffrey Rotstein, President and CEO. "With more campaigns in the quarter having smaller budgets, we prioritized certain self-serve features to streamline campaigns and in the process, lessen the performance gap between fully managed campaigns and self-serve platforms in Canada," added Rotstein. "This, together with our dedication to mobile as a key growth area for EQ, is expected to shape our progress for the coming quarters."

The Company also announced that it has retained Difference Capital as financial advisor to explore and advise on potential strategic alternatives for the Company.

Highlights for the Second Quarter ended June 30, 2014


--  Launch of the most advanced mobile targeting platform in Canada 
    
--  Enhanced mobile rich media capabilities 
    
--  Introduced pre-screened video with exclusive audience segments 
    
--  Rolled out Phase 1 of the EQ Self-Serve Reporting and Insights Platform 

"We are now witnessing a decisive shift in the Canadian digital media landscape with mobile now front and centre with all of our agency partners," said David Katz, EVP Corporate Development. "To support this shift, EQ's mobile platform received a boost in the quarter, with the creation of bespoke audiences and the most advanced hyper-local and points-of-interest targeting in the Canadian market," added Katz. "During the quarter, EQ made significant investments to support our mobile and video capabilities, and we have already been recognized for our advancements by major media agencies in Canada. We intend to rapidly grow our share of mobile footprint."

Non-IFRS Financial Measures

We measure the success of our strategies and performance based on Adjusted EBITDA, which is outlined and reconciled with net income (loss) in the section entitled "Reconciliation of Net Loss for the period to Adjusted EBITDA" in the MD&A. The Company defines Adjusted EBITDA as net income (loss) from operations before; (a) depreciation of property and equipment and amortization of domain properties and other intangible assets; (b) share-based payments, (c) restructuring, (d) impairment of goodwill and domain properties and other intangible assets, (e) Income tax expense and recovery, and (f) finance income and costs, 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 working capital requirements, capital expenditures and potential acquisitions. 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 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:


----------------------------------------------------------------------------
Adjusted EBITDA for three and six months ended June 30, 2014 and 2013       
----------------------------------------------------------------------------
                                     Three months ended    Six months ended 
                                               June 30,            June 30, 
(In thousands of Canadian dollars)       2014      2013      2014      2013 
----------------------------------------------------------------------------
                                                                            
Net loss                               (1,168)   (1,008)   (2,327)   (2,366)
Add:                                                                        
                                                                            
Income tax recovery                         -       (65)        -      (130)
Finance (income) cost, net                (57)      111        46       213 
Depreciation of property and                                                
 equipment                                 50        70       110       145 
Amortization of domain properties                                           
 and other intangibles                    270       286       544       569 
Share-based payments                       14        15        25        36 
                                                                            
----------------------------------------------------------------------------
Adjusted EBITDA                          (891)     (591)   (1,601)   (1,533)
----------------------------------------------------------------------------

About EQ Works

EQ Works (www.eqworks.com) provides a smarter way to target customers. The Company uses its real-time technology and advanced analytics to detect the actionable data that boosts performance for all web, mobile, social and video initiatives. EQ Works balances the many components that comprise the complex advertising ecosystem and establishes equilibrium for reaching the right audience at the right time through any web or mobile device.

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. EQ Inc. is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.


                                                                            
EQ Inc.                                                                     
Unaudited Condensed Consolidated Interim Statements of Financial Position   
(In thousands of Canadian dollars)                                          
                                                                            
                                           June 30, 2014   December 31, 2013
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Current assets:                                                             
Cash and cash equivalents                  $       1,218  $            2,797
Accounts receivable                                  959               2,231
Other current assets                                 395                 222
                                                                            
----------------------------------------------------------------------------
                                                   2,572               5,250
                                                                            
Non-current assets:                                                         
Investment                                            50                  50
Property and equipment                               186                 281
Domain properties and other intangible                                      
 assets                                            1,087               1,610
                                                                            
----------------------------------------------------------------------------
                                                   1,323               1,941
                                                                            
----------------------------------------------------------------------------
Total assets                               $       3,895  $            7,191
----------------------------------------------------------------------------
                                                                            
                                                                            
Liabilities and Shareholders' Equity                                        
                                                                            
Current liabilities:                                                        
Accounts payable and accrued liabilities   $       1,633  $            2,316
Deferred lease inducement                             22                  14
Finance leases                                        93                 122
Deferred revenue                                     212                 602
----------------------------------------------------------------------------
                                                   1,960               3,054
                                                                            
Non-current liabilities:                                                    
Deferred lease inducement                             72                   -
Finance leases                                        16                  64
                                                                            
----------------------------------------------------------------------------
                                                      88                  64
                                                                            
Shareholders' Equity                               1,847               4,073
                                                                            
----------------------------------------------------------------------------
Total liabilities and Shareholders'                                         
 equity                                    $       3,895  $            7,191
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
EQ Inc.                                                                     
Unaudited Condensed Consolidated Interim Statements of Comprehensive Income 
 (Loss)                                                                     
(In thousands of Canadian dollars, except per share amounts)                
Three and six months ended June 30, 2014 and 2013                           
                                                                            
                                   Three months ended      Six months ended 
                                             June 30,              June 30, 
                                      2014       2013       2014       2013 
----------------------------------------------------------------------------
                                                                            
Revenue                          $   1,082  $   1,909  $   3,097  $   3,546 
                                                                            
Expenses:                                                                   
  Publishing and advertising                                                
   costs                               439      1,036      1,493      1,872 
  Employee compensation and                                                 
   benefits                            785        858      1,774      1,894 
  Other operating expenses             763        621      1,457      1,349 
  Depreciation of property and                                              
   equipment                            50         70        110        145 
  Amortization of domain                                                    
   properties and other                                                     
   intangible assets                   270        286        544        569 
                                                                            
----------------------------------------------------------------------------
                                     2,307      2,871      5,378      5,829 
----------------------------------------------------------------------------
                                                                            
Loss from operations                (1,225)      (962)    (2,281)    (2,283)
                                                                            
Finance income                          59          6         10         21 
Finance cost                            (2)      (117)       (56)      (234)
----------------------------------------------------------------------------
                                                                            
Loss before income taxes            (1,168)    (1,073)    (2,327)    (2,496)
                                                                            
Deferred income tax recovery             -         65          -        130 
----------------------------------------------------------------------------
                                                                            
Loss for the period                 (1,168)    (1,008)    (2,327)    (2,366)
                                                                            
Other comprehensive income                                                  
 (loss):                                                                    
  Foreign currency translation                                              
   adjustments to equity               (81)       213         76        394 
----------------------------------------------------------------------------
                                                                            
Other comprehensive income                                                  
 (loss) for the period, net of                                              
 tax                                   (81)       213         76        394 
                                                                            
----------------------------------------------------------------------------
Total comprehensive loss                                                    
for the period                      (1,249)      (795)    (2,251)    (1,972)
----------------------------------------------------------------------------
                                                                            
Loss per share:                                                             
  Basic and diluted                  (0.07)     (0.06)     (0.14)     (0.15)
                                                                            
                                                                            
                                                                            
                                                                            
EQ Inc.                                                                     
Unaudited Condensed Consolidated Interim Statements of Cash Flows           
(In thousands of Canadian dollars)                                          
Six months ended June 30, 2014 and 2013                                     
                                                                            
                                                                            
----------------------------------------------------------------------------
                                                           2014        2013 
----------------------------------------------------------------------------
                                                                            
Cash flows from operating activities:                                       
  Loss for the period                                    (2,327)     (2,366)
  Adjustments to reconcile net loss to net cash                             
   flows from operating activities:                                         
    Depreciation of property and equipment                  110         145 
    Amortization of domain properties and other                             
     intangible assets                                      544         569 
    Amortization of deferred lease inducement               (17)        (20)
    Share-based payment                                      25          36 
    Foreign exchange loss                                    53         227 
    Finance income, net                                      (4)         (6)
    Deferred income tax recovery                              -        (130)
  Change in non-cash operating working capital              169         503 
----------------------------------------------------------------------------
  Net cash used in operating activities                  (1,447)     (1,042)
                                                                            
Cash flows from financing activities:                                       
  Repayment of finance leases                               (77)        (76)
  Interest paid                                              (6)        (15)
----------------------------------------------------------------------------
  Net cash used in financing activities                     (83)        (91)
                                                                            
Cash flows from investing activities:                                       
  Interest income received                                    4          21 
  Addition to property and equipment                         (6)        (50)
  Additions to domain properties and other                                  
   intangible assets                                          -         (26)
----------------------------------------------------------------------------
  Net cash from (used in) investing activities               (2)        (55)
                                                                            
Foreign exchange loss on cash held in foreign                               
 currency                                                   (53)       (227)
----------------------------------------------------------------------------
                                                                            
Decrease in cash and cash equivalents                    (1,585)     (1,415)
                                                                            
Cash and cash equivalents, beginning of period            2,797       5,419 
                                                                            
----------------------------------------------------------------------------
Cash and cash equivalents, for the period             $   1,212   $   4,004 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things...
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
DevOps tasked with driving success in the cloud need a solution to efficiently leverage multiple clouds while avoiding cloud lock-in. Flexiant today announces the commercial availability of Flexiant Concerto. With Flexiant Concerto, DevOps have cloud freedom to automate the build, deployment and operations of applications consistently across multiple clouds. Concerto is available through four disruptive pricing models aimed to deliver multi-cloud at a price point everyone can afford.
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed...
Business as usual for IT is evolving into a “Make or Buy” decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud busi...
Businesses are looking to empower employees and departments to do more, go faster, and streamline their processes. For all workers – but mobile workers especially – utilizing the cloud to reconnect documents and improve processes without destructing existing workflows can have a dramatic impact on productivity. In his session at 16th Cloud Expo, Mark Grilli, vice president of Acrobat Solutions marketing at Adobe Systems Incorporated, will outline new ways that the cloud is changing the way peo...
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting we...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
Are your applications getting in the way of your business strategy? It’s time to rethink your IT approach. In his session at 16th Cloud Expo, Madhukar Kumar, Vice President, Product Management at Liaison Technologies, will discuss a new data-centric approach to IT that allows your data, not applications, to inform business strategy. By moving away from an application-centric IT model where data integration and analysis are subservient to the constraints of applications, your organization will b...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
WSM International has launched a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of the organization. According to a recent press release from Gartner, "By 2016, DevOps will evolve from a niche strategy employed by large cloud ...
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional S...