Welcome!

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 cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, will give users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion w...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
The Art of DevOps provides a fun overview to help teams understand DevOps. Written in the style of the famous 6th century Chinese manuscript “The Art of War,” this eBook describes DevOps in the form of a mission to continuously deliver assets to the operational battlegrounds safely, securely, and quickly. It’s a fun read with valuable insights.
SYS-CON Events announced today that (ISC)²® (“ISC-squared”) will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Two leading non-profits focused on cloud and information security, (ISC)² and Cloud Security Alliance (CSA), developed the Certified Cloud Security Professional (CCSP) certification to address the increased demand for cloud security expertise due to rapid growth in cloud. Recently named “The Next...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
Recognizing the need to identify and validate information security professionals’ competency in securing cloud services, the two leading membership organizations focused on cloud and information security, the Cloud Security Alliance (CSA) and (ISC)^2, joined together to develop an international cloud security credential that reflects the most current and comprehensive best practices for securing and optimizing cloud computing environments.
DevOps is not just last year’s buzzword. Companies with DevOps practices are 2.5x more likely to exceed profitability, market share, and productivity goals. But how do you enable high performance? What can you do right now to start? Find out from DevOps experts including Gene Kim, co-author of "The Phoenix Project," and the Dynatrace Center of Excellence.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, will discuss using predictive analytics to ...
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...