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
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
SYS-CON Events announced today that Calligo has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo is an innovative cloud service provider offering mid-sized companies the highest levels of data privacy. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalized support service from its globally located cloud platform...
SYS-CON Events announced today that Elastifile will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Launched in 2016, Cloudistics helps anyone bring the power of the cloud to the data center in an easy-to-use, on- premises cloud platform that automatically provides high performance resources for all types of applications: Docke...
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, will address this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of t...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-security...