Montreal, Quebec, April 30, 2009 - Aptilon Corporation (“Aptilon” or the “Company”) (TSX-V: APZ), a leader in creating online access to physicians for pharmaceutical sales programs, today announced its financial results for the year ended December 31, 2008. Financial references are in CDN dollars. Complete financial statements and MD&A are available on SEDAR at www.sedar.com.
Financial Highlights
- Revenue for 2008 increased to $8.0 million, or 3%, from $7.8 millionin 2007
- Gross margin for 2008 increased 62% to $5.0 million from $3.1 million in 2007
- Revenue for the fourth quarter of 2008 increased to $2.7 million, or 86%, over the same period in 2007
- Net loss during the fourth quarter decreased 72% to $846,000
- Net loss for 2008 totaled $ 5.7 million compared to $ 6.2 million in 2007
Business Highlights
- Renewed contracts for 2009 with its existing top ten US pharmaceutical clients for an approximate total of $7.5 million, successfully moving several clients from first stage engagements to enterprise-level rollouts
- Acquired Tinderbox Partners Inc., which operates Allied Health Partners, thereby expanding pharmaceutical company access to high profile US physicians through Aptilon’s ReachNetSM, an extensive network of partner and company-owned websites
- Established a partnership with Skura to offer Designer Plus, integrating its Closed Loop Marketing technology and Aptilon’s live video detailing platform to enhance sales representatives’ face-to-face interactions with physicians and increase the number of paid online interactions with physicians
- Entered into a strategic partnership with Triple-i, a provider of secure online ordering and drug sample fulfillment services for pharmaceutical companies, broadening Aptilon’s services, online network coverage and increasing the volume of pharma–sponsored revenue generating transactions
- Released AxcelRxSM RepCentral, the latest version of its award-winning live video detailing platform that enables pharmaceutical sales representatives to provide live education to key physicians at a time and place convenient for them, typically in their homes during nights and weekends
“Fiscal 2008 was the watershed year in our Company’s advancement,” said Chairman and CEO Dr. Roger Korman. “In terms of organic growth, our fourth quarter results were the best in our history, continuing the upward trend in our performance and pointing the way to our future. We have successfully negotiated the transition from starter projects on a limited software platform to major, ongoing work with top US pharmaceutical companies based on the leading technology in our field. Capitalizing on new distribution channels for our products and services, we have expanded partnerships with major pharmaceutical marketing companies who serve top US clients. This lays the foundation for further building our roster of pharmaceutical clients and brands, targeting an increased number of physicians for advertising and learning programs, and increasing the number of revenue generating pharma-physician interactions in the year ahead,” he added.
Financial Review 2008
For the year ended December 31, 2008, revenue increased 3% to $8.0 million compared to $7.8 million in 2007.
Gross margin for 2008 was $5.0 million compared to $3.1 million in 2007. Expressed as a percentage of revenue, gross margin increased to 63% in 2008 from 40% in 2007 mainly due to the acquisition of Tinderbox Partners Inc.
General and administrative (“G&A”) expenses for 2008 were $3.1 million or 39% of revenue, compared to $3.2 million or 41% of revenue in 2007. G&A expenses consist primarily of salaries and benefits for executive management and administrative personnel; related office premises; and other infrastructure support costs. Stock-based compensation of $431,605 ($420,137 in 2007) is also included in G&A.
Sales and marketing expenses for 2008 increased to $5.4 million compared to $4.8 million in 2007 in order to launch the AxcelRxSM RepCentral platform and win new enterprise-wide agreements. Sales and marketing expenses consist primarily of salaries (including commissions and bonuses) and related costs associated directly to sales and promotion activities.
Net loss for the year ended December 31, 2008 was $5.7 million or $0.03 per share, compared to $6.2 million or $0.04 per share in 2007 as the result of operating efficiencies achieved in the project management of follow-on projects from new clients.
As at December 31, 2008, the Company had working capital of $2.4 million, including cash and cash equivalents of $1.3 million compared to $8.9 million, including cash and cash equivalents of $7.9 million, at December 31, 2007 as the result of the continued development of the AxcelRxSM platform and the initiative to renew clients to ongoing projects.
The Company had 186,948,944 common shares outstanding (fully diluted) at December 31, 2008.
Financial Review Fourth Quarter 2008
Revenue for the fourth quarter of 2008 totalled $2.7 million, an increase of 86% from $1.5 million in the fourth quarter of 2007 and 62% from $1.7 million in the third quarter of 2008.
The gross margin of $1.7 million in the fourth quarter represented 62% of revenue, in line with the first three quarters of the year.
G&A in the fourth quarter of 2008 decreased 17% from the same period in 2007, from $1.1 million to $0.89 million. Sales and marketing expenses also decreased 26%, from $1.6 million in the fourth quarter of 2007 to $1.2 million in the fourth quarter of 2008, due to reductions in sales and marketing expenses consistent with the successful signing of follow-on projects from new clients.
The trend in reducing the net loss from $2.1 million in the second quarter, to $1.4 million in the third quarter, and $0.86 million in the fourth quarter, which is a 72% decrease over the 4th quarter 2007, reflects the ongoing success in re-signing clients to larger projects and implementing operating efficiencies in managing them.
Business Priorities for 2009
Our primary 2009 objective is to continue the performance trend we established in 2008 by achieving our three-fold approach of organic growth, partnership alliances, and acquisitions that build our client base and the number of brands marketed through our innovative AxcelRxSM Live video detailing platform, and that increase the participation of health care professionals in interactive events. Expert industry sources continue to support Aptilon’s strategy of offering a multichannel solution to health care practitioner education that meets the needs of the pharmaceutical industry.
About Aptilon Corporation
Aptilon enables pharmaceutical, biotech and medical device companies to effectively reach and interact with more than 450,000 US physicians via the Internet through its innovative AxcelRxSM Live video detailing platform which hosts promotional, peer selling and other sales and marketing programs. Top ten US pharmaceutical companies have adopted Aptilon’s AxcelRxSM solution to reach leading physicians. Aptilon provides the infrastructure necessary 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.
AxcelRxSM and ReachNetSM are service marks of Aptilon Corporation.
Forward-looking statements
This news release may contain forward-looking statements. 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.
For further information please contact:
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Mr. Denis Martineau
President
Aptilon Corporation
1-888-544-8866
investors@aptilon.com
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Jeremy Mackenzie Lee
The Equicom Group
514-788-2434
jmackenzielee@equicomgroup.com
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The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
