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Blackline GPS Corp. (TSX VENTURE:BLN) ("Blackline" or the "Company") is pleased to report its financial results for the third quarter ended July 31, 2011.
Revenue for the three month period ended July 31, 2011 was $565,743, a 46% increase over the three month period ended April 30, 2011. The increase in revenue over the prior quarter came from the successful launch in the current quarter of Javelin, the first product in the Company's new Industrial Safety and Security portfolio, and the continuing increase in service revenue from the Company's growing customer base. Revenue from Javelin, which began shipment on June 29th, accounted for 31% of all product sales in the Quarter. Revenue for the three and nine month periods ended July 31, 2011 decreased by 9% and 11% respectively over the same periods in the prior year. The decrease in revenue is a reflection of the Company's transition away from the retail markets and into the Industrial safety and commercial markets.
The net loss for the three month period ended July 31, 2011 was reduced to ($766,206) from ($1,010,167) for the three months ended April 30, 2011. The reduction came from the impact of increased sales and the receipt of SR&ED credits during the three month period ended July 31, 2011 as well as the impact of one time royalty fees and stock based compensation incurred in the three month period ended April 30, 2011. The net loss for the nine month period ended July 31, 2011 increased by $138,660 over the same period in the prior year primarily due to an increase in stock compensation expense from earlier in 2011 and research and development expenses related to the launch of the Company's new products.
Adjusted EBITDA was approximately ($724,700) for the three month period ended July 31, 2011, an improvement of $68,800 over ($793,500) for the three month period ended April 30, 2011. The improvement is due predominantly to the increase in gross margin from the Company's new products. Adjusted EBITDA for the nine months ended July 31, 2011 was ($2,230,100) compared to approximately ($2,239,900) for the same period of the prior year, a decrease of 0.4%. For full details please refer to financials and MD&A posted on Sedar.com.
About Blackline: Headquartered in Calgary, Canada, Blackline is an industrial safety and commercial product manufacturer. The company solutions address work environments focused on employee safety, while also offering connected hardware to improve security and communicate logistical information of company assets. The industrial business aims to supply growing global legislated and regulated markets, with service plans that provide functionality based on product hardware. The Company maintains a suite of products and services which service the consumer and retail environment. Blackline's technology, dedication and vision combine to create an ever-growing suite of tools designed to Protect. Share. Connect.®
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