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
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
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, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of patie...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his general session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/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.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
910Telecom exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. 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 exchanges.
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...