Blackline GPS Reports Q3 2013 Results
September 27, 2013
CALGARY, ALBERTA–(Marketwired – Sept. 27, 2013) –
Not for distribution to United States newswire services or dissemination in the United States.
Blackline GPS Corp. (“Blackline” or the “Company”) (TSX VENTURE:BLN), a manufacturer of employee safety and asset tracking systems, today announced results for the quarter ended July 31, 2013.
Q3 2013 highlights
- Opened its first international sales office in the United Kingdom
- Ranked No. 73 on the 25th annual PROFIT 500 report
- Launched a new indoor location product known as ANThill location beacon
- Continued development of the Loner 900 System with satellite communication
- Deferred revenue reached nearly $1M, a 43% increase over Q3 FY2012
- Q3 Gross margin was 47%, a 12% increase over Q3 FY2012
- Revenue increased to $656k, a 4% increase over Q3 FY2012
- Employee Safety Monitoring and Tracking product revenues increased 48% over Q3 FY2012
“This quarter saw Blackline evolve from a predominantly GPS-based solution provider to a more diversified company now capable of monitoring employees indoors with our ANThill precision indoor location technology,” said Cody Slater, CEO and Chairman of Blackline GPS. “With the introduction of our upcoming Loner 900 System, Blackline will establish a complete suite of products to enable aggressive targeting of several key industries including Oil & Gas, Utilities & Public Works, Manufacturing, Natural Resources, Government, and Transportation.” Blackline has launched 6 new employee safety monitoring products to serve global customer needs in the past 17 months. Slater added, “To support the expansion of our complete safety monitoring portfolio, we have also begun the expansion of our sales network with the opening of our sales office in the UK to serve the European market.”
Blackline’s new ANThill indoor location beacon addresses the real customer need of monitoring and precisely locating employees indoors where GPS signals are not able to reach, such as within concrete and steel buildings or floors below ground. ANThill beacons are self-powered transponders that continually broadcast a short-range signal for proximity detection by employee-worn Loner safety monitoring devices. Achieving a configurable positioning resolution between 5 and 35 meters, ANThill beacons target facilities within several industries including Oil & Gas, Public Works, Utilities, and Manufacturing. Having achieved the first level of intrinsic safety certification for use within hazardous environments that include explosive gases and vapours, final certifications for environments with explosive dusts will be completed in Q4 2013.
Blackline is targeting completion of its Loner 900 System before the end of calendar 2013 that will enable enterprises to monitor their employees nearly anywhere in the world, regardless of the availability of cellular communication networks. The Loner 900 System is comprised of two components – a person worn Loner 900 safety monitoring device and a portable, vehicle-mounted communications base station, Loner Bridge. Loner 900 devices communicate with Loner Bridge that provides backhaul communication to Blackline’s infrastructure through satellite or cellular networks.
An expansion program into the United Kingdom and European Union was announced in the quarter with Blackline having engaged with GfG Europe, a well-positioned safety equipment distributor. GfG Europe will be promoting both employee safety monitoring and business tracking solutions under the name Blackline GPS Europe.
The 5-year growth of Blackline was recognized by PROFIT Magazine in the quarter. Blackline placed in the No. 73 position of reported Canadian companies, having achieved 933% growth over the period.
Financial Highlights (in thousands, except per share data)
|Quarter ended July 31,||9 month period ended July 31,|
|Gross margin percentage||47||%||42||%||12||%||47||%||43||%||9||%|
|Loss before stock compensation||$||(812.4||)||$||(693.9||)||(17||%)||$||(2,420.5||)||$||(2,269.5||)||(7||%)|
|Loss per share||$||(0.05||)||$||(0.06||)||17||%||$||(0.14||)||$||(0.18||)||22||%|
Although quarterly revenue growth was flat compared to Q3 FY2012, Blackline’s employee safety monitoring and tracking product revenue grew by 48%. The increase in revenue from the Company’s target markets was mostly offset by a reduction of 30% in the old retail consumer products and services.
Deferred revenue improved from $695k on July 31, 2012 to $997k on July 31, 2013, a 43% increase, as the new methods to encourage customers to purchase services in advance have taken effect. 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.
Blackline’s quarterly net loss was flat compared to the Q3 2012 as the increased gross margin was offset by the increased investment into sales, marketing, and development of key products all of which are vital for the growth of the Company.
The Company’s unaudited condensed interim financial statements and Management’s Discussion and Analysis for the three and nine month periods ended July 31, 2013 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.