MONTREAL, Nov. 29 /PRNewswire-FirstCall/ -- Aptilon Corporation ("Aptilon" or the "Company") (TSX-V: APZ), a leader in online marketing to physicians and healthcare professionals, today announced its financial results for the nine months ended September 30, 2010. Financial references are in CDN dollars unless otherwise indicated. Complete financial statements and MD&A are available on SEDAR at http://www.sedar.com/.
Q3 2010 Summary -- Revenues reached $8.52 million, compared to $3.72 million in Q3 2009; YTD revenue $24.8 million -- Gross margin of $5.21 million compared to $2.34 million in Q3 2009; YTD gross margin $14.9 million -- Operating income of $0.61 million reversed an operating loss of ($0.27 million) in Q3 2009 and YTD operating income totaled $2.55 million compared to a loss of ($1.17 million) in 2009 -- Net income of $65,418 for the quarter compared to a loss of ($613,760) in Q3 2009 and YTD net loss of ($184,039) compared to a loss of ($1,528,389) in 2009 -- Generated positive net cash flow from operations of $1.18 million for the third quarter of 2010 and $4.37 million YTD (before net change in non cash working capital items of ($0.95 million) and $4.9 million respectively.) Financial Review
For the third quarter of 2010, revenues increased 129% to $8,518,849 compared to $3,719,750 for the same period a year ago. Revenues for the first nine months of 2010 totaled $24,779,708 compared to $9,597,386 for the first nine months of 2009, an increase of 158%. Revenue in the period reflects a broader base of customers, growth in the size of enterprise customer initiatives and contribution from the assets purchased ("DMD") in fiscal 2009.
Gross margin for the three-month period ended September 30, 2010 was $5,210,865 compared to $2,342,169 for the three months ended September 30, 2009, an increase of $2,868,696 or 122%.
Operating income for the three months ended September 30, 2010 reached $612,582 reversing an operating loss of ($275,282) for the comparable period a year ago. For the nine-month period ended September 30 2010, the operating income reached $2,549,569 reversing an operating loss of ($1,173,172) for the same period in 2009.
Net income for the three months ended September 30, 2010 was $65,418 or $0.0003 per share compared to a net loss of ($613,760) or ($0.00376) per share for the comparable period a year ago.
Sales and marketing expenses for the third quarter of 2010 totaled $2,014,045 compared to $1,259,905 for the third quarter of 2009. General and administrative ("G&A") expenses for the third quarter of 2010 increased to $1,477,335 compared to $724,927 in the third quarter of 2009. Increases in expenditures were primarily driven by the integration of DMD and non-recurrent charges for legal fees.
In the third quarter ended September 30, 2010, the Company generated positive cash-flow from operations of $1,179,725, before net change in non cash working capital item of ($946,328). In the year prior period, cash flows used in operating activities totaled ($28,202), before net change in non cash working capital items of $63,231.
As at September 30, 2010, the Company's working capital position included the short-term portion of a promissory note payable in connection to the DMD acquisition completed in 2009. Working capital totaled ($1,309,340) including cash and cash equivalents and restricted cash of $2,515,879 compared to ($3,501,970) in working capital, which included cash and cash equivalents and restricted cash of $2,056,741, at December 31, 2009.
The Company had 211,288,365 common shares outstanding (fully diluted) at September 30, 2010.
AxcelRxSM and ReachNetSM are service marks of Aptilon Corporation.
About Aptilon Corporation Aptilon enables pharmaceutical, biotech and medical device companies to effectively reach, advertise to and interact with more than 500,000 US physicians via the Internet through its innovative AxcelRxSM service offering including video detailing, ReachNetSM Physician Access Channel and the DMD database and permission-based email services. Top ten US pharmaceutical companies and respected healthcare organizations have adopted Aptilon's solutions to market to and engage leading physicians. For more information, visit http://www.aptilon.com/.
Forward-looking statements This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Aptilon. A number of factors could cause actual events, performance or results to differ materially from the events performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Aptilon does not assume any obligation to update or revise them to reflect new events or circumstances.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Aptilon Corporation
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