NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
The following press release replaces that which was disseminated on March 27, 2012 at 7:00 AM MDT, correcting the headings of the Financial Highlights table. Blackline GPS Corp. (TSX VENTURE:BLN) ("Blackline" or "Company") today released first quarter results for the fiscal 2012 year.
Q1 2012 highlights
69% increase in quarterly revenue over Q1 FY2011
4th consecutive quarter-on-quarter revenue growth
Gross margin increased by 198% over Q1 FY2011
Gross margin percentage increased to 45%
Adjusted EBITDA improved by 23% over prior year
Signed first nationwide industrial safety distributor; Procon Systems, Inc.
Signed monitoring and marketing agreement with Waste Management
"In Q1 we saw the initial results from completing the transition to higher margin business-to-business markets including strong increases in both our revenue and gross margins," says Cody Slater, CEO of Blackline. "Continuing to invest in our future by adding new sales personnel, and designing, developing and launching new products will enable Blackline to maintain momentum through fiscal 2012 and beyond."
In thousands, except per share data
Gross margin percentage
Loss per share
Q1 revenue of $637k represents a 69% increase over the prior year and the second highest quarterly revenue in the Company's history. This strong performance was a result of our growing service revenue base, sales into new distribution networks, and acceptance of the Company's mobile worker safety monitoring products in commercial markets.
The Company achieved strong improvement in gross margin over the prior year, both as contribution margin - up 198%, and as a percentage of sales - up 80%. The focus on the business-to-business products and the increased service margins were the factors driving the positive change.
Adjusted EBITDA improved by approximately $110k from Q1 FY2011 due to the impact of increased revenue and greater margins partially offset by the impact of growth in the sales and marketing expenses necessary as the Company continues its expansion. The Company expects to see positive impacts from the increased sales and marketing investments in late FY2012.
Adjusted EBITDA is defined as earnings before interest expense, depreciation and amortization, stock-based compensation, income taxes, research and development costs for the development of new products, and one-time non-cash impact events.
Net loss increased by $68,222 to ($839,923) over Q1 FY2011 due to the stock-based compensation expense ("SBC") generated by the option grant in January 2012. Excluding the impact of SBC in both periods, the net loss decreased by $41,150 over the prior year.
The Company's unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the three month period ended January 31, 2012 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 web services. Our mission is to become the leading supplier of wireless 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. (R)
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.