MONTREAL, Aug. 29 /CNW/ -- MONTREAL, Aug. 29 /CNW/ - Aptilon Corporation ("Aptilon" or the "Company") (TSX-V: APZ), a leader in online marketing to physicians, today announced its financial results for the three and six months ended June 30, 2008. Financial references are in CDN dollars unless otherwise indicated. Complete financial statements and MD&A are available on SEDAR at www.sedar.com.
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Q2 08 Summary
- Revenues reached $1.65 million, compared to $2.1 million for Q2 2007
- Gross profit totaled $931,000 compared to $1,117,714 in Q2 2007
- Net loss totaled ($2.1 million) compared to ($1.1 million) in Q2 2007
- Signed agreements with two of the world's top 10 pharmaceutical
companies for AxcelRx Live video detailing service
- Announced partnership with Skura to offer pharma companies Designer
Plus, a tool that will improve the sales and marketing effectiveness
of sales representatives
>>
"2008 has turned out to be a transitional year that has seen the replacement of small client and project revenue with larger enterprise agreements from top US pharmaceutical companies," said Roger Korman, Chairman and CEO of Aptilon. "In 2007, single brand and small client projects were completed and recognized within the year. We are now working with six of the top 12 US pharmaceutical companies, and have achieved a 73% increase in brands committed to our AxcelRxSM solution. Despite the longer time required to set up large-scale, multi-brand programs, by focusing on these multi-brand enterprise agreements with top US pharmaceutical companies, we are securing a long-term source of recurring revenue and future growth. We expect to see measurable results of these efforts in the coming quarters."
Dr. Korman added, "Looking forward, we will continue to focus on broadening access to high profile US physicians, which is the foundation of our business model and our competitive advantage. With physicians abandoning traditional channels in favor of web-based learning, the industry is transforming its approach to professional sales and marketing. We believe our three-prong growth strategy: build, buy, and license, will enable us to quickly capitalize on this trend. We will continue to build relationships with top US pharma companies and increase brand mandates; invest in acquisitions that increase our access to US physicians; and, through licensing and partnership agreements, extend our distribution capabilities."
Financial Review
For the second quarter of 2008 revenues decreased to $1,650,977 compared to $2,102,184 for the same period a year ago. Revenues for the first half of 2008 totaled $3,674,864, compared to $4,354,609 for the first half of 2007. Decreased revenues in both periods reflect the transition of project revenue from smaller Canadian customers to larger enterprise agreements from top US pharmaceutical companies. Enterprise agreements require lengthier marketing planning and implementation which resulted in a delay in campaign launches and revenue recognition during the quarter.
Gross profit for the three-month period ended June 30, 2008 was $931,052 or 56% of revenue compared to $1,117,714 or 53% of revenue for the three months ended June 30, 2007. For the six months ended June 30, 2008 gross profit increased to $2,282,794 or 62% of revenue, compared to 2,188,830 or 50% of revenue for the same period in 2007. Gross margins for both periods increased mainly as a result of a 27% reduction in cost of revenues, offset by lower revenues generated in 2008.
General and administrative ("G&A") expenses for the second quarter of 2008 decreased by 4% to $674, 430 compared to $703,092 in the second quarter of 2007. G&A expenses for the first six months of 2008 totaled $1,287,255, compared to $1,310,049 in same period of 2007. G&A expenses consist primarily of salaries, personnel expenses of executive management and administrative personnel, and related office, premises, and other infrastructure support costs.
Selling and promotion expenses, totaled $1,465,497 for the second quarter of 2008, compared to $993,618 in the second quarter of 2007. For the six-month period ended June 30, 2008, selling and promotion expenses totaled $2,867,908, compared to $2,036,777 in the same period of 2007. Selling and promotion expenses consist primarily of salaries (including commissions and bonuses) and related costs associated directly to selling and marketing activities, such as traveling and lodging expenses.
Net loss for the three months ended June 30, 2008, was ($2,091,271) or ($0.0124) per share, compared to ($1,070,192) or ($0.0076) per share for the comparable period a year ago. Net loss for the first half of 2008 was ($3,490,582) or ($0.0207) per share, compared to ($1,915,992) or ($0.0137) per share in the same period a year ago. The Company has implemented a plan to streamline operations and reduce expenses with the goal to achieve profitability in 2009.
As at June 30, 2008, the Company had working capital of $3,989,968, including cash and cash equivalents of $2,745,947 compared to $8,872,196, including cash and cash equivalents of $8,085,215 at December 31, 2007.
The Company had 190,608, 522 common shares outstanding (fully diluted) at June 30, 2008.
About Aptilon Corporation
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Aptilon enables pharmaceutical, biotech and medical device companies to effectively reach and interact with physicians via the Internet through its innovative AxcelRx(SM) live video detailing platform which hosts promotional, peer selling and sales and marketing programs. Top US pharmaceutical companies have adopted Aptilon's AxcelRx(SM) solution for their sales representatives to reach leading physicians on-line. Aptilon provides the necessary infrastructure for pharmaceutical companies to build physician awareness, understanding, and product preference during all stages of a product's life cycle; from pre-launch education through end stage support. For more information, visit www.aptilon.com.
Forward-looking statements
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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.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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