Blackline GPS Corp. Reports Q2 2013 Results

Written by Diana Winger | June 26, 2013

CALGARY, ALBERTA--(Marketwired - June 26, 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) today released results for the quarter ended April 30, 2013.

Q2 2013 highlights

Revenue increased by 35% over the 3 month period ended April 30, 2012
Industrial Safety and Covert product revenues increased 306% over the same period of the prior year while the retail based legacy products declined 74%
Adjusted EBITDA improved by $122k ($322.9k) over the 3 month period ended April 30, 2012
Q2 Gross margin was 50%, the highest quarterly gross margin percentage achieved to date
Launched Dart™ into the recovery industry through distribution agreement with MVTRAC
Made significant progress developing worker safety monitoring solutions for use beyond cellular networks
Flat Track receives Government Security News Silver Award for the Best Covert Surveillance Solution

"Our performance over the past three quarters demonstrates the progress into the industrial safety and covert markets, generating increased sales and margins," says Cody Slater, CEO of Blackline. "With our recently expanded sales team and upcoming new product launches we are poised to take the next step as a Company toward becoming a leader in our markets."

Financial Highlights

Quarter ended April 30			6 month period ended April 30
2013	2012	Change	2013	2012	Change
Revenue	$705.4	$521.6	35%	$1,285.2	$1,158.9	11%
Gross margin	$352.3	$210.4	67%	$601.3	$495.6	21%
Gross margin percentage	50%	40%	25%	47%	43%	9%
Adjusted EBITDA	($322.9)	($444.8)	27%	($682.3)	($808.4)	16%
Loss before stock compensation	($824.1)	($872.1)	6%	($1,608.1)	($1,575.6)	(2%)
Net loss	($832.8)	($894.8)	7%	($1,671.6)	($1,734.7)	4%
Loss per share	($0.05)	($0.06)	17%	($0.10)	($0.12)	17%

In thousands, except per share data

Financial Information

Revenue was increased over the same periods of the prior year as the Company pushed into new markets including rental car agencies and asset recovery with continued demand within current channels. Adjusted EBITDA increased largely on the increased gross margin while keeping expenses almost flat. Overall net loss improved slightly as the increased gross margin was mostly absorbed by the increased R&D spending to drive development of the new units.

The Company's unaudited condensed interim financial statements and Management's Discussion and Analysis for the three and six month periods ended April 30, 2013 are available at the Company's profile on SEDAR at www.sedar.com. All results are reported in Canadian dollars.

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