CALGARY, ALBERTA--(Marketwired - June 17, 2015) - Blackline GPS Corp. (TSX VENTURE:BLN) ("Blackline" or the "Company"), a leading manufacturer of employee safety monitoring solutions, today announced its results for the three and six-month periods ended April 30, 2015.
Q2 Highlights
"The substantial revenue growth across our North American and European regions was achieved through sales to a broad cross-section of customers ranging from meter readers to correctional officers," says Cody Slater, CEO and Chairman of Blackline GPS. "Achieving three consecutive quarters of triple-digit growth demonstrates the impact of Blackline's maturing product line and increased customer reach."
Financial Highlights
| Quarter Ended April 30 | Six Month Period Ended April 30 | |||||||||||||||
| 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||
| Revenue | $ | 1,590 | $ | 702 | 126 | % | $ | 3,291 | $ | 1,374 | 140 | % | ||||
| Gross Margin | $ | 733 | $ | 320 | 129 | % | $ | 1,554 | $ | 644 | 141 | % | ||||
| Gross Margin percentage | 46 | % | 46 | % | - | 47 | % | 47 | % | - | ||||||
| Adjusted EBITDA | $ | (357 | ) | $ | (491 | ) | 27 | % | $ | (421 | ) | $ | (881 | ) | 52 | % |
| Net Loss | $ | (699 | ) | $ | (1,332 | ) | 48 | % | $ | (1,521 | ) | $ | (2,213 | ) | 31 | % |
| Loss per Share | $ | (0.03 | ) | $ | (0.07 | ) | 57 | % | $ | (0.07 | ) | $ | (0.12 | ) | 42 | % |
| (Values in thousands except for percentages and per share data) |
Key Financial Information
Revenue grew by 126%, reaching a record level for the second quarter of $1.6M, primarily driven again by sales of the Loner Bridge System that launched in Q4 of FY2014. Although the Loner Bridge System was key to the revenue growth seen, Blackline again saw improvement across all areas of its current product lineup.
Gross margin progressed alongside revenue to another second quarter record of $733k. This was the primary contributor to the improved adjusted EBITDA and reduced net loss. Gross margin for the six month period topped $1.5M which is more than was generated in the entire 2013 fiscal year and is only $250k less than was generated in the entire 2014 year.
During the quarter, investors exercised 3.1M warrants and broker warrants raising $4.6M of funds. The Company will use the funds to develop additional monitoring capabilities to support diverse customer needs. Blackline also received $460k of SR&ED tax credits from the Alberta Government in the quarter. The funds represent the SR&ED claims for the 2013 and 2014 tax years.
Blackline has been awarded up to $500k of funds from Tecterra for the development of a future product. The loan, similar in structure to the previous loan awarded by Tecterra in 2012, is interest-free and only repayable if the product being developed generates income for the Company.
Blackline's unaudited condensed consolidated interim financial statements and management's discussion and analysis for the three and six month periods ended April 30, 2015 are available at www.sedar.com. All results are reported in Canadian dollars.
About Blackline: Blackline GPS Corp. (TSX VENTURE:BLN) is a wireless location leader that develops, manufactures, and markets products and services for worker safety monitoring. Targeting a broad cross-section of industries where safety is a corporate priority, Blackline's Loner solutions are promoted through offices in Calgary and the United Kingdom, and sold through a growing network of international distributors. Blackline's safety solutions deliver safety and location awareness through mobile messaging, monitoring portal, Blackline's Safety Operations Center, and web services. Blackline's vision is to become the leading supplier of wirelessly connected worker safety monitoring products in the world. Blackline products allow customers to protect their personnel, share the conditions of their environment, and connect with emergency services when necessary. Blackline solutions Protect. Share. Connect.®
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