Press release from Marketwire
Blackline GPS Corp Reports Record Q3 Revenue
Friday, September 21, 2012
Blackline GPS Corp Reports Record Q3 Revenue09:00 EDT Friday, September 21, 2012CALGARY, ALBERTA--(Marketwire - Sept. 21, 2012) -NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.Blackline GPS Corp. (TSX VENTURE:BLN) today released results for the three and nine month periods ended July 31, 2012.Q3 2012 highlights:Highest Q3 Revenue in Company's history 12% increase in revenue for the three month period and 35% increase for the nine month period ended July 31, 2012 over the same respective periods in the prior year Gross margin increased by 118% within the quarter and 170% in the nine month period ended July 31, 2012 over the same periods in FY2011 Closed private placement for $4.0 million to fast-track development of new products Received interest free funding from a not-for-profit entity to develop a new product that incorporates geomatics technology Release of second generation Loner® SMD employee safety monitoring device"As the Company completes its transition to a full suite of business based solutions we can see the impact with gross margin contribution up 118% on an increase of 12% in sales. This type of performance highlights why the Company undertook this transition in FY2011", says Cody Slater, CEO of Blackline. "We saw the positive, increasing contribution this quarter from our innovative, next-generation solutions through the launch of the Loner SMD, the second product in our growing employee safety monitoring suite. We look forward to continued growth fueled by our future product launches and further expansion of the sales network in upcoming quarters." Financial Highlights:Three months ended July 31,Nine Months Ended July 31,In thousands, except per share data20122011Change20122011ChangeRevenue631.1565.712%1,790.01,329.135%Gross margin265.2121.8118%760.8281.7170%Gross margin percentage42%22%91%43%21%105%Adjusted EBITDA-$463.6-$497.27%-$1,272.0-$1,479.014%Loss before stock compensation-$693.9-$741.16%-$2,269.6-$2,368.24%Net loss-$870.0-$770.7-13%-$2,604.8-$2,521.2-3%Loss per share-0.06-0.05-0.18-0.20Financial InformationAlthough the Company has virtually ceased sales of its retail products it still achieved record revenue in Q3, surpassing the same quarter in the prior year by 12%. Blackline also continued significant gross margin improvement, more than doubling in both the three month and nine month periods ended July 31, 2012 over the same periods of the prior year. The Company began shipment of new Loner SMD products in Q3 which was a significant factor behind the increase in revenue and gross margin over the prior year.Adjusted EBITDA improved by approximately $34k from Q3 FY2011 and $207k for the nine month period due to the impact of increased revenue and greater margins, partially offset by the impact of growth in the sales and marketing expenses necessary for the Company's expansion. Adjusted EBITDA is defined as earnings before interest expense, depreciation and amortization, stock-based compensation, income taxes, research and development costs for the development of new products, and one-time non-cash impact transactions.Excluding the impact of stock compensation expense the net loss improved by $47k for the three month period and $99k for the nine month period ended July 31, 2012 over the same respective periods of the prior year. The improvement is due to the increased sales and margins partially offset by the increase in development, sales and marketing expenses. Net loss increased by $99k for the three month period and $84k for the nine month period over the same periods of the prior year. The Company's unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the three and nine month periods ended July 31, 2012 are available at the Company's profile on SEDAR at www.sedar.com. All results are reported in Canadian dollars.About Blackline: Blackline GPS is a wireless location leader that develops, manufactures, and markets products and services for worker safety monitoring, covert tracking, and consumer applications. Blackline solutions deliver safety, security, and location awareness through innovative wireless hardware and custom user interfaces, including web, mobile, messaging, and web services. Blackline's vision is to become the leading supplier of wirelessly connected worker safety monitoring and covert tracking products in the world. Blackline products allow customers to protect their personnel and valued assets, share the conditions of their environment, and connect with emergency services when necessary. Blackline solutions Protect. Share. Connect.® Visit www.blacklinegps.com for further information.FOR FURTHER INFORMATION PLEASE CONTACT: Cody SlaterBlackline GPS Corp.CEOcslater@blacklinegps.comORSuite 101, 1215 13th Street SEBlackline GPS Corp.Calgary, AB Canada T2G 3J4+1-403-451-0327+1-403-451-9981 (FAX)www.blacklinegps.comNeither 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.