CALGARY, ALBERTA--(Marketwire - Jan. 25, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Blackline GPS Corp. (TSX VENTURE:BLN) ("Blackline" or the "Company") today released fourth quarter and year-end results for fiscal 2011.
Q4 2011 highlights:
- Blackline substantially transitioned to a business-to-business (B2B) market focus
- 97% of product sales were to commercial and industrial markets
- Continued quarterly revenue growth since the market transition was initiated
- Gross margin improves to 46%, the Company's strongest ever
- Net loss decreased for the third straight quarter
- Received an ASIS Accolades Security's Best award for Blackline's Flat Track product
- Received a TechRev award as one of Calgary's top 10 technology innovators
"Fiscal 2011 has seen Blackline substantially complete its transition to higher margin business- to-business markets from its prior consumer focus," said Cody Slater, CEO of Blackline. "Through the year, the Company introduced new business solutions including Javelin and Flat Track covert trackers, a new Business Portal user account, and the Company's first worker safety monitoring product with True Fall Detection, Loner FDU. As we move into 2012, we look forward to continued growth in these areas as we develop our sales channels and expand our suite of products in the B2B space."
Financial Highlights:
Fiscal 2011
Gross sales were $2.72 million, an increase of $102,948 over the prior year amount of $2.62 million. The Company defines gross sales as the total of yearly revenue and the end balance of deferred revenue, representing an approximation of the total amounts invoiced to customers for products and services in the year. This metric reflects the Company's true growth since it combines current activity with the future revenue stream at the end of each fiscal year.
Revenues for the year were $1.92 million compared to $2.12 million for 2010. The decrease reflects a reduction in consumer sales that was virtually offset by increased sales into the higher margin B2B markets. Gross margin improved from 23% in FY2010 to 29% in FY2011 on the sale of higher margin products and improved service margins generated through the change in market focus.
Deferred revenue as of October 31, 2011 was $802,618 compared to $502,825 in 2010, an increase of $299,793. Blackline monitors deferred revenue closely as it reflects customer commitment to the Company's products since it is generated when a customer pays in advance for future service.
Net loss for the year was ($3.21) million compared to ($3.05) million in 2010. The net impact was due largely to a one-time royalty adjustment in the second quarter combined with additional stock compensation expense. The Adjusted EBITDA for the year was ($2.84) million compared to ($2.82) million in 2010.
The Company's audited consolidated financial statements and Management's Discussion and Analysis for the year ended October 31, 2011 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 API. Our mission is to become the leading supplier of wirelessly connected worker safety monitoring and covert tracking products in the world. Blackline products allow our 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.®
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.
