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Blackline GPS Corp. ("Blackline" or the "Company") (TSX VENTURE:BLN), a manufacturer of employee safety and asset tracking systems, today announced results for the three and nine month periods ended July 31, 2014.
Q3 2014 highlights
Loner Bridge System backlogged orders reached $4.3M as of July 31, 2014
Revenue increase of 16% and 10% over the three and nine month periods of the prior year
Achieved 51% gross margin for the quarter and 48% year to date
Expanded headquarters to increase production, development, and sales capacity
Obtained bank financing to balance cash flows
European sales office brought in $44k of revenue in its first full quarter
Increased development and operations to facilitate growth
"Companies that maintain operations in remote regions have expressed substantial interest in our new Loner Bridge satellite based work alone system," said Cody Slater, Blackline's CEO & Chairman. "In Q3 we received an additional 2.1 million dollars of orders, bringing our total backlog for Bridge hardware and service to 4.3 million. Also during the quarter the Company increased its inventory levels and expanded the Calgary operations to ensure it can meet demand. We have begun shipments of Loner Bridge Systems in Q4 and are now seeing our products providing protection for a growing number of workers in ever more diverse and challenging locations."
Financial Highlights (in thousands, except per share data)
Quarter ended July 31,
9 month period ended July 31,
Adjusted gross margin
Gross margin percentage
Research and development
Amortization and interest
Loss per share
The Company increased revenue compared to the prior year periods due to the contribution of the UK operation and increased service revenue generated through the activation of a large US based customer.
Total deferred revenue improved to $1.45M as of July 31, 2014, a $145k increase over the prior year. 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 more safety and business tracking customers adopt the Company's solutions.
The Company's Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation, Amortization, and R&D expense) increased in the period as focus was placed on developing the operations needed for growth. Personnel and office expenses increased from both the new UK operation and the addition of customer engagement employees at the Company's headquarters.
Blackline's quarterly net loss increased over the same periods of the prior year from its continued investment into development of the Loner Bridge System and the operational support needed to develop and complete customer deployments. The benefits of those investments will occur in Q4 FY2014 as systems are shipped and activated by customers.
The Company's unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis for the three and nine month periods ended July 31, 2014 are available at the Company's profile on SEDAR at www.sedar.com. All results are reported in Canadian dollars.