Click here to close now.




















Welcome!

News Feed Item

EQ Inc. Reports Fourth Quarter Growth and 2013 Results

Company Reports Growth in Advertising Operations

TORONTO, ONTARIO -- (Marketwired) -- 03/18/14 -- 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 fiscal year and fourth quarter-ended December 31, 2013. Total revenue from continuing operations for the quarter was $2.6 million, an increase of 40% from the $1.9 million recorded in the third quarter of 2013. The adjusted EBITDA loss for the quarter was approximately $197,000, a 64% improvement as compared to a loss of $550,000 in the the third quarter of 2013. Total revenue from continuing operations for the year was $8.0 million and the adjusted EBITDA loss for the year was $2.3 million.

Highlights for the Fourth Quarter ended December 31, 2013


--  Several new agency clients joined our Agency First(TM) program,
    establishing EQ as their preferred media buying partner 
--  Active campaigns grew 120% during the quarter 
--  The Company launched Hercules(TM), an innovative advertising solution
    that has been recognized by experts for its effectiveness at fighting
    click-fraud 
--  The Company strengthened its mobile advertising capabilities and
    expanded its team to support increasing demand for innovative mobile
    targeting solutions 

"The investments we made during 2013 to refocus the Company on effective audience targeting solutions were put to the test during the busiest quarter in digital advertising," said Geoffrey Rotstein, President and CEO. "We consistently beat our clients' expectations, proving our effectiveness in reaching new audiences and with quality scores that far surpassed what others in the industry were capable of delivering." added Rotstein. "It was a good quarter for EQ as we continue to innovate with products and solutions that deliver better performing ads and produce insights that help companies find new customers."

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". The Company defines Adjusted EBITDA as net income (loss) from continuing 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 continuing operations and Adjusted EBITDA for the periods presented:


Adjusted EBITDA for three and twelve months ended December 31, 2013 and 20  
----------------------------------------------------------------------------
                                  Three months ended       Twelve months    
                                     December 31,         ended December    
(In thousands of Canadian                                                   
 dollars)                              2013       2012       2013       2012
----------------------------------------------------------------------------
                                                                            
Net income (loss)                   (1,330)      (773)    (4,471)     1,562 
Add:                                                                        
                                                                            
Income from the discontinued                                                
 operation                               -          -      -         (5,129)
Income tax recovery                    (40)      (233)      (237)      (378)
Finance income costs, net               85         35        223         44 
Depreciation of property and                                                
 equipment                              64         70        273        283 
Amortization of domain                                                      
 properties and other                                                       
intangibles assets                     296        279      1,158      1,118 
Share-based payments                    12          4         57         60 
Impairment of goodwill and                                                  
 domain properties                                                          
and other intangible assets            716          -        716          - 
Restructuring                            -         86      -             86 
                                                                            
----------------------------------------------------------------------------
Adjusted EBITDA                       (197)      (532)    (2,281)    (2,354)
----------------------------------------------------------------------------

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 Consolidated Statements of Financial Position                     
(In thousands of Canadian dollars)                                          
December 31, 2013 and December 31, 2012                                     
                                                            2013        2012
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Current assets:                                                             
Cash and cash equivalents                            $     2,797 $     5,419
Accounts receivable                                        2,231       2,425
Other current assets                                         222         303
Income taxes recoverable                                       -          40
----------------------------------------------------------------------------
                                                           5,250       8,187
                                                                            
Non-current assets:                                                         
Investment                                                    50          50
Property and equipment                                       281         460
Domain properties and other intangible assets              1,610       2,889
Goodwill                                                       -         357
----------------------------------------------------------------------------
                                                           1,941       3,756
----------------------------------------------------------------------------
                                                                            
Total assets                                         $     7,191 $    11,943
----------------------------------------------------------------------------
                                                                            
                                                                            
Liabilities and Shareholders' Equity                                        
                                                                            
Current liabilities:                                                        
Accounts payable and accrued liabilities             $     2,316 $     2,703
Deferred lease inducements                                    14          41
Finance leases                                               122         155
Deferred revenue                                             602         549
----------------------------------------------------------------------------
                                                           3,054       3,448
                                                                            
Non-current liabilities:                                                    
Finance leases                                                64         186
Deferred lease inducements                                     -          14
Deferred tax liabilities                                       -         244
----------------------------------------------------------------------------
                                                              64         444
                                                                            
Shareholders' Equity                                       4,073       8,051
----------------------------------------------------------------------------
                                                                            
Total liabilities and Shareholders' equity           $     7,191 $    11,943
----------------------------------------------------------------------------
                                                                            
EQ Inc.                                                                     
Unaudited Consolidated Statements of Comprehensive Income (Loss)            
(In thousands of Canadian dollars, except per share amounts)                
Three and twelve months ended December 31, 2013 and 2012                    
                                                                            
                                  Three months ended    Twelve months ended 
                                     December 31,          December 31,     
                                       2013       2012       2013       2012
----------------------------------------------------------------------------
                                                                            
Revenue                          $   2,592  $   2,576  $   8,044  $  13,506 
                                                                            
Expenses:                                                                   
  Publishing and advertising         1,339      1,533      4,228      7,809 
  Employee compensation and                                                 
   benefits                            855      1,143      3,605      5,139 
  Other operating                      607        436      2,549      2,972 
  Depreciation of property and                                              
   equipment                            64         70        273        283 
  Amortization of domain                                                    
   properties and other                                                     
   intangible assets                   296        279      1,158      1,118 
  Impairment of goodwill and                                                
   domain properties other                                                  
   intangible assets                   716          -        716          - 
  Restructuring                          -         86          -         86 
  --------------------------------------------------------------------------
                                     3,877      3,547     12,529     17,407 
----------------------------------------------------------------------------
                                                                            
Loss from operations                (1,285)      (971)    (4,485)    (3,901)
                                                                            
Finance income                           9        168         34         50 
Finance cost                           (94)      (203)      (257)       (94)
----------------------------------------------------------------------------
                                                                            
Loss before income taxes            (1,370)    (1,006)    (4,708)    (3,945)
                                                                            
Income taxes recovery                   40        233        237        378 
----------------------------------------------------------------------------
                                                                            
Loss for the period from                                                    
 continuing operations              (1,330)      (773)    (4,471)    (3,567)
                                                                            
Discontinued Operation:                                                     
                                                                            
Income for the period from                                                  
 discontinued operation, net of                                             
 tax                                     -          -          -      5,129 
----------------------------------------------------------------------------
                                                                            
Net income (loss)                   (1,330)      (773)    (4,471)     1,562 
                                                                            
Other comprehensive income                                                  
 (loss):                                                                    
  Foreign currency translation                                              
   adjustments to equity               165         98        436        (69)
  --------------------------------------------------------------------------
                                                                            
Other comprehensive income                                                  
 (loss) for the period                 165         98        436        (69)
----------------------------------------------------------------------------
                                                                            
Comprehensive income (loss) for                                             
 the period                      $  (1,165) $    (675) $  (4,035) $   1,493 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Income (loss) per share:                                                    
  Basic                              (0.08)     (0.05)     (0.28)      0.10 
  Diluted                            (0.08)     (0.05)     (0.28)      0.10 
                                                                            
Loss per share from continuing                                              
 operations:                                                                
                                                                            
  Basic                              (0.08)     (0.05)     (0.28)     (0.22)
  Diluted                            (0.08)     (0.05)     (0.28)     (0.22)
----------------------------------------------------------------------------
                                                                            
EQ Inc.                                                                     
Unaudited Consolidated Statements of Cash Flows (In thousands of Canadian   
 dollars)                                                                   
Years ended December 31, 2013 and 2012                                      
                                                             2013       2012
----------------------------------------------------------------------------
                                                                            
Cash flows from operating activities:                                       
  Net income (loss)                                    $  (4,471) $   1,562 
  Adjustments to reconcile net income (loss) to net                         
   cash flows from operating activities:                                    
    Depreciation of property and equipment                   273        551 
    Amortization of domain properties and other                             
     intangible assets                                     1,158      3,291 
    Amortization of deferred lease inducements               (41)       (65)
    Share-based payments                                      57         60 
    Foreign exchange loss (gain)                             260        (23)
    Finance cost (income), net                                (8)       718 
    Current income tax recovery                               (2)       (21)
    Deferred income taxes recovery                          (235)      (357)
    Impairment of goodwill and domain properties and                        
     other                                                                  
    intangible assets                                        716          - 
    Gain on sale of property and equipment                     1        (17)
    Gain on sale of domain properties and other                             
     intangible assets                                         -        (59)
    Gain on sale of discontinued operation                     -     (7,402)
    Restructuring                                              -        307 
                                                                            
  Change in non-cash operating working capital               160     (3,292)
  --------------------------------------------------------------------------
  Cash used in operating activities                       (2,132)    (4,747)
  Income taxes received (paid)                                44        (26)
  --------------------------------------------------------------------------
  Net cash used in operating activities                   (2,088)    (4,773)
                                                                            
Cash flows from financing activities:                                       
  Repurchase of common shares under NCIB                       -        (35)
  Repayment of finance leases                               (155)       (89)
  Interest paid                                              (26)      (330)
  --------------------------------------------------------------------------
  Net cash used in financing activities                     (181)      (454)
                                                                            
Cash flows from investing activities:                                       
  Purchase of long-term investment                             -        (50)
  Interest income received                                    34         53 
  Net proceeds from sale of available-for-sale                              
   investments                                                 -        200 
  Proceeds on sale of discontinued operations, net of                       
   cash disposed of                                            -      6,293 
  Decrease in restricted cash and short-term                                
   investments                                                 -        201 
  Net Proceeds from disposal of property and equipment         2         17 
  Net Proceeds from disposal of domain properties              -         82 
  Additions to property and equipment                        (78)      (221)
  Additions to domain properties and other intangible                       
   assets                                                    (51)        (2)
                                                                            
  --------------------------------------------------------------------------
  Net cash from (used in) investing activities               (93)     6,573 
                                                                            
Foreign exchange gain (loss) on cash held in foreign                        
 currency                                                   (260)        23 
----------------------------------------------------------------------------
                                                                            
Increase (decrease) in cash and cash equivalents          (2,622)     1,369 
                                                                            
Cash and cash equivalents, beginning of year               5,419      4,050 
                                                                            
----------------------------------------------------------------------------
Cash and cash equivalents, end of year                 $   2,797  $   5,419 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Learn what is going on, contribute to the discussions, and e...
Puppet Labs is pleased to share the findings from our 2015 State of DevOps Survey. We have deepened our understanding of how DevOps enables IT performance and organizational performance, based on responses from more than 20,000 technical professionals we’ve surveyed over the past four years. The 2015 State of DevOps Report reveals high-performing IT organizations deploy 30x more frequently with 200x shorter lead times. They have 60x fewer failures and recover 168x faster
To support developers and operations professionals in their push to implement DevOps principles for their infrastructure environments, ProfitBricks, a provider of cloud infrastructure, is adding support for DevOps tools Ansible and Chef. Ansible is a platform for configuring and managing data center infrastructure that combines multi-node software deployment, ad hoc task execution, and configuration management, and is used by DevOps professionals as they use its playbooks functionality to autom...
Containers are not new, but renewed commitments to performance, flexibility, and agility have propelled them to the top of the agenda today. By working without the need for virtualization and its overhead, containers are seen as the perfect way to deploy apps and services across multiple clouds. Containers can handle anything from file types to operating systems and services, including microservices. What are microservices? Unlike what the name implies, microservices are not necessarily small,...
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now 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 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
In 2014, the market witnessed a massive migration to the cloud as enterprises finally overcame their fears of the cloud’s viability, security, etc. Over the past 18 months, AWS, Google and Microsoft have waged an ongoing battle through a wave of price cuts and new features. For IT executives, sorting through all the noise to make the best cloud investment decisions has become daunting. Enterprises can and are moving away from a "one size fits all" cloud approach. The new competitive field has ...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...