Blackline GPS Reports Q2 2014 Results
June 26, 2014
CALGARY, ALBERTA–(Marketwired – June 26, 2014) –
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Blackline GPS Corp. (TSX VENTURE:BLN), a manufacturer of employee safety and asset tracking systems, today announced results for the quarter ended April 30, 2014.
Q2 2014 highlights
- Passed certification tests for Bridge / Loner 900 solution required for commercialization
- Deferred revenue increased to $1.46M, a 60% increase over Q2 FY20123
- Began European expansion through new UK office
- Increased development and operations to facilitate growth
“Q2 saw the Company increase its development expenditures as we focused on the upcoming launch of our recently announced Bridge product, an industry first solution designed to truly protect those who work beyond cellular networks,” said Cody Slater, Blackline’s CEO & Chairman. “With the increasing backlog of product and service sales, including the recently announced $2.1M customer order, we have also taken the time to expand our Customer Care group and increase our manufacturing capacity. We look forward to seeing the benefits of these investments in the coming quarters as we begin shipment of our new product lines and we see the impact of our geographic expansion into Europe.”
Financial Highlights (in thousands, except per share data)
|Quarter ended April 30,||6 month period ended April 30|
|Adjusted gross margin||$||343.3||352.3||(3||%)||$||690.4||$||601.3||15||%|
|Gross margin percentage||46||%||50||%||(8||%)||47||%||47||%||0||%|
|Research and development||$||533.7||$||471.4||13||%||$||958.0||$||870.2||10||%|
|Amortization and interest||$||35.4||$||29.8||19||%||$||73.5||$||55.6||32||%|
|Loss per share||$||(0.07||)||$||(0.05||)||(40||%)||$||(0.12||)||$||(0.10||)||(20||%)|
The Company’s revenue was flat versus revenue from Q2 FY2013 as the Company was focused on developing channels for the Bridge / Loner 900 solution.
Deferred revenue, long and short term combined, improved to $1.46M as of April 30, 2014 over the prior year as we increased our customer base. Blackline tracks its deferred revenue amounts closely since it represents the commitment of customers to the Company’s products. Blackline’s deferred revenue has continued to experience year on year growth as the more long-term minded safety monitoring and tracking customers replace the temporary needs of the declining legacy retail customers.
The Company’s Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation, Amortization, and R&D expense) increased in the period as focus was put on developing the operations needed for growth. Additional staff were hired to support customer onboarding and implementations, penetrate the developing sales channels, and to expand the Company’s production capabilities.
Blackline’s quarterly net loss increased over the same period of the prior year from issuance of stock options combined with the Company’s further investment into development of the Loner Bridge system and the operational support needed to develop and perform customer implementations.
The Company’s unaudited condensed consolidated interim financial statements and Management’s Discussion and Analysis for the three and six month periods ended April 30, 2014 are available at the Company’s profile on SEDAR at www.sedar.com. All results are reported in Canadian dollars. To learn more about Blackline GPS, visit www.blacklinegps.com and follow Blackline on Twitter @blacklinegps.
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.