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
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th 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 wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...