Aptilon Announces 2011 Second Quarter Results

MONTREAL, Aug. 29, 2011 /CNW/ -- 
MONTREAL, Aug. 29, 2011 /CNW/ - Aptilon Corporation ("Aptilon" or the
 "Company") (TSXV: APZ), a leader in online access to, engagement and
 interaction with physicians and healthcare professionals on behalf of
 pharmaceutical and life sciences companies, today announced its
 financial results for the three-month period ended June 30, 2011.
 Financial references are in CDN dollars. Complete financial statements
 and MD&A are available on SEDAR at www.sedar.com.


Financing Highlights:


    --  Successfully renegotiated the secured promissory note issued in
        September 2009 in connection with the purchase of substantially
        all the assets of Direct Medical Data, LLC and BLM Incorporated
        related to their healthcare marketing services. The original
        note in the amount of $27,200,000 provided for monthly
        installments, and a lump sum payment of approximately
        US$12,417,000 on September 15, 2012. The original note and
        associated lump sum payments were replaced by a new secured
        promissory note in the amount of US$21,750,000, being the
        balance due under the original note as of April 14, 2011. The
        new note bears interest at the rate of 6.9% per annum and is
        repayable in increasing monthly installments (ranging from
        US$226,000 for the first 9 months to US$600,000 for 11 of the
        last 12 months) from April 15, 2011 until December 15, 2015. It
        is secured and guaranteed in the same manner as the original
        note.
    --  Working capital improved by $2.0 million to ($0.08 million)
        from ($2.1 million) at December 31, 2010, primarily due to the
        above renegotiation of the long term debt



Operating Highlights:


    --  Completed transition of major clients of its latest product
        line updates and 'cloud' based services.
    --  Launched Aptilon Mobile to instantly connect pharmaceutical
        representatives and professionals with HCPs, including
        prescribing physicians, nurse practitioners and physician
        assistants via their smartphones
    --  Revenues reached $5.9 million, compared to $8.5 million in Q2
        2010; YTD revenue $13.1 million
    --  Gross margin was $3.0 million in the three-month period,
        compared to $5.4 million in Q2 2009; gross margin YTD reached
        $7.0 million
    --  Operating expenses in the period decreased to $3.5 million from
        $4.0 million in the second quarter of 2010
    --  Net loss of ($1.4 million) for the quarter compared to a gain
        of $0.6 million in Q2 2010; YTD net loss reached ($2.0 million)
        compared to a net loss of ($0.1 million) in 2010. Net loss for
        the current quarterly period includes $1.1 million of non-cash
        items ($581 for depreciation and amortization, $48 for
        share-based compensation, and $514 for accreted interest)
        compared to a total of $1.6 million for the same period in
        2010. YTD non-cash items total $2.6 million. 



The decline in revenue was attributed to the strengthening value of the
 Canadian dollar against the United Stated dollar; to certain
 pharmaceutical industry mergers during the preceding periods that
 caused specific legacy programs to be discontinued; and to delays in
 certain client internal legal and regulatory departments associated
 with key new business wins.


Updates to the Aptilon service platform initiated in the first half of
 the year are designed to increase future business opportunities to
 access, engage and interact with healthcare professionals via any
 channel and any device. Based upon early customer feedback, the Company
 believes that the impact of the new cloud-based service platform will
 be positive in the coming periods.


About Aptilon Corporation 


Aptilon enables pharmaceutical, biotech and medical device companies to
 effectively reach, message, connect and interact with US physicians and
 healthcare professionals on the Internet and over mobile devices via
 multiple access channels. Its innovative service offerings provide
 targeted impressions and interactions through: video and mobile
 detailing, ReachNet℠ Physician Access Channel, the DMD database and
 permission-based email services. Top US pharmaceutical companies and
 respected healthcare organizations have adopted Aptilon's solutions to
 market to, engage and interact with leading healthcare practitioners.
 For more information, visit www.aptilon.com.


ReachNet(SM) is a service mark 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.


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.


To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/29/c7117.html



p Mr. Denis Martineaubr/ Presidentbr/ Aptilon Corporationbr/ 1-888-544-8866br/ a href="mailto:[e-mail]"[e-mail]/a /p 

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