CALGARY, ALBERTA--(Marketwire - March 28, 2013) -
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Blackline GPS Corp. (the "Company") (TSX VENTURE:BLN) today released results for the quarter ended January 31, 2013.
Q1 2013 highlights:
"Strong sales growth in our business-focused markets, particularly employee safety monitoring, virtually offset the decline in revenues from our legacy consumer products as we exit from that market," says Cody Slater, CEO of Blackline "The 37% safety monitoring and business tracking growth was achieved with the limited suite of products we have launched to date. During this quarter, Blackline increased investment into product development to expedite the release of our upcoming dual-mode satellite and cellular communication product as well as our indoor location technology. We look forward to being the first company in our industry to offer ubiquitous, global safety monitoring with precise location capability - even indoors."
Financial Highlights:
| Quarter ended January 31, | ||||||||
| In thousands, except per share data | 2013 | 2012 | Change | |||||
| Revenue | $ | 579.8 | $ | 637.3 | (9 | %) | ||
| Gross margin | $ | 249.1 | $ | 285.2 | (13 | %) | ||
| Gross margin percentage | 43 | % | 45 | % | (4 | %) | ||
| Adjusted EBITDA | $ | (359.4 | ) | $ | (363.6 | ) | 1 | % |
| Loss before stock compensation | $ | (784.0 | ) | $ | (703.5 | ) | (11 | %) |
| Net loss | $ | (838.8 | ) | $ | (839.9 | ) | 0 | % |
| Loss per share | $ | (0.05 | ) | $ | (0.06 | ) | 17 | % |
Financial Information
Revenue was down from the same quarter of the prior year as the Company has transitioned completely from the sale of legacy retail-based products. Removing the impact of the 40% decrease in revenue derived from legacy products the Company increased revenue by 37% through product sales and growing service revenues of safety monitoring and business tracking products.
Adjusted EBITDA remained flat as the reduced revenues from the legacy products balanced against the reduced retail advertising requirements that would have been generated on those sales. Overall net loss remained flat as well due to the reduced gross margin and increased product development costs offset the reduced retail advertising, and lower stock compensation expense.
The Company's unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the three month period ended January 31, 2013 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. Blackline's vision is to become the leading supplier of wirelessly connected worker safety monitoring and covert tracking products in the world. Blackline products allow 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.®
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.