Canadian Corporate News --- Hot Off The Wire
News Release for "CYBERSURF CORP"
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: CYBERSURF CORP.
ASE SYMBOL: CY
JUNE 4, 1997
Cybersurf Announces Recent Developments and Unaudited
Financial Statements
CALGARY, ALBERTA--
TO OUR SHAREHOLDERS
RECENT DEVELOPMENTS
The third quarter reflected a transition for Cybersurf Corporation
as we position the Company to take advantage of the growth in the
converging aspects of our industry. Cybersurf has achieved market
recognition as an Internet service provider, however our strength
is, and always has been, in our software design and wide area
network capability. Our recent acquisition of DogNet
Communications Corporation has provided an integral component of
our strategy to market our capability as a connectivity and
software solution provider.
Continuing changes in the converging telecommunications,
broadcasting sectors will provide significant opportunities for
Cybersurf. A number of important market niches are developing
where we can apply our technology to specific market
opportunities. Recently we developed an innovative solution for a
cost effective link between remote bingo games to provide
interactive video, audio and data exchange.
Other changes in the structure and organization of Cybersurf have
been made to build the structure and organization we need to
manage our growth. Mr. Robert McInnes has recently joined our
management group to assist in this process. Mr. McInnes has
extensive experience with technology companies such as ours and
will play an active role in managing our growth and
diversification.
FINANCIAL REVIEW
The third quarter results are not positive, nor are they
disappointing. The key focus of our financial activities has been
to generate cash flows to continue and complete our software and
networking projects. To this end, we have been successful in
raising equity through private placements and conserving cash in
our day to day operations. In the closing quarter of our fiscal
year we intend to do a thorough review of our accounting policies
and procedures. However, management has made an increased
provision for depreciation in the third quarter in keeping with
our existing depreciation policy.
The DogNet acquisition has added substantially to our revenue
base. This third quarter represents a full recognition of the
DogNet operations with the effective date of the acquisition being
December 1, 1996. In addition, amortization of the excess of the
purchase price of DogNet over the net book value has been
amortized and included in depreciation and amortization.
In conclusion, we believe that the future of Cybersurf will be
founded in the opportunities being created in the world of
converging communication technologies and deregulation. We will
continue to position the company to capture those opportunities.
Gary Gardner
President
/T/
CYBERSURF CORP.
Consolidated Statements of Loss and Deficit
UNAUDITED
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For The Nine For The Nine
Months Ended Months Ended
March 31, 1997 March 31, 1996
$ $
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REVENUE 659,507 267,350
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COST OF SALES 633,120 -
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GROSS MARGIN 26,387 267,350
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EXPENSES
Depreciation and Amortization 132,180 82,807
General and administrative 259,829 396,607
Marketing and selling 87,446 182,504
Personnel 125,287 258,362
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604,742 920,280
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NET LOSS 578,355 652,930
DEFICIT, BEGINNING OF PERIOD 645,746 120,437
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DEFICIT, END OF PERIOD 1,224,101 773,367
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LOSS PER SHARE 0.04 0.05
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CYBERSURF CORP.
Consolidated Statements of Changes in Financial Position
UNAUDITED
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For The Nine For The Nine
Months Ended Months Ended
March 31, 1997 March 31, 1996
$ $
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OPERATING
Net loss (578,355) (652,930)
Depreciation and Amortization 132,180 82,807
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(446,175) (570,123)
Changes in non-cash operating
working capital items
Accounts Receivable (67,706) 62,798
Inventory 52,881 2,450
Prepaid expenses and deposits (194,379) (17,841)
Accounts Payable 245,668 306,887
Deferred Revenue 118,956 35,891
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155,420 (305,534)
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FINANCING
Due to shareholder - (8,500)
Issue of common shares 811,885 957,500
Common Shares issued for major
transactions - 267,329
Share issue costs - (40,000)
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811,885 1,176,329
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INVESTING
Purchase of capital assets (72,896) 569,981
Deferred development costs (175,768) -
Other asset: Acquisition (329,277) -
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(577,941) 569,981
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NET CASH (DECREASE) INCREASE (56,811) 300,814
CASH, BEGINNING OF PERIOD 74,875 48,316
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CASH, END OF PERIOD 18,064 349,130
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/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Cybersurf Corp.
Gary Gardner
President
(403) 777-2000
(403) 777-2003 (FAX)
www.cia.com
INDUSTRY: CMT
SUBJECT: ERN
-0-
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