Bluedrop Performance Learning (“Bluedrop”) (TSX-V: BPLI) today reported
its financial results for the three months ended March 31, 2019.
Revenue for the three months ended March 31, 2019 was $5.0 million, down
from $6.1 million for the same period in the previous year, a decrease
of 18%. Gross profit for the period was $2.4 million, an increase of
$0.1 million over the three-month period ended March 31, 2018. Pre-tax
loss was $1.6 million for the current quarter compared to a loss of $0.2
million for the same period in the previous year. After tax loss for the
three months ended March 31, 2019 was $1.1 million compared to loss of
$0.1 million for the same period in the previous year.
Revenues decreased in the second quarter this year compared to the same
period last year due to lower revenues in the Training and Simulation
business unit. The decrease was primarily related to revenue from
simulation products. During the second quarter of fiscal 2019 the
business unit generated $0.1 million in simulation product revenues
versus $1.5 million in the comparable prior period. Learning Networks
had a 42% increase in revenues mostly from its Bluedrop360 platform.
Gross profit of $2.4 million was up by $0.1 million in the current
quarter compared to the same quarter in the previous year. Expenses for
the quarter were up $1.5 million from that of the same quarter in the
previous year. Research and development costs increased by $0.9 million
and general and administrative costs increased by $0.7 million in the
period compared to the previous year. The Company continued to pay down
long term debt as scheduled and ended the quarter with cash on hand of
$0.9 million. There was no draw on the Company credit facilities as at
March 31, 2019.
Bluedrop continued its investment trend in its research and development
efforts with $1.6 million of investment in the quarter in programs to
build new and stronger intellectual property based products.
For further details, please see the Financial Statements and
Management’s Discussion and Analysis for the quarter ended March 31,
2019 which are available on the Company’s web site at www.bluedrop.com
or on SEDAR at www.sedar.com.
Commenting on the quarterly results of Bluedrop, Founder and CEO Emad
Rizkalla said “We had a better quarter for the Training and Simulation
business unit for its services business and are in production now for
several simulator products already announced. We will start to see
revenues from these products in the coming quarters as mentioned in the
first quarter report. The Learning Networks business unit had strong
quarter over quarter growth with revenues increasing by 42% mostly
driven by increased revenues for our Bluedrop360 platform. Learning
Networks continues to be very busy deploying its platform and working on
recently announced new contracts. Rolling out the new technology and
products in both business units at the same time has resulted in
increased research and development expenses with Learning Networks
investing over $1.0 million in this quarter alone. We expect that
product revenues will increase in both business units as we deliver
against exiting orders. We remain committed to our business plan and to
investing in our product strategies for both business units and expect
that these investments will yield positive results over the coming
quarters.”
About Bluedrop
Bluedrop Performance Learning Inc. (TSX-V: BPLI) is an innovator in
workplace training for individuals, corporations, military personnel and
the public sector. Bluedrop is transforming the workplace globally by
designing, developing and delivering practical, actionable and
affordable training content that improves individual and overall
performance of organizations. For more information, visit www.bluedrop.com.
This news release may contain “forward-looking information” as
defined in applicable Canadian securities legislation. All statements,
other than statements of historical fact included in this release,
constitute forward-looking information that involve various risks and
uncertainties. Forward-looking information is based on a number of
factors and assumptions which have been used to develop such information
but which may prove to be incorrect, including, but not limited to,
assumptions in connection with the operational efficiencies associated
with the integration of technological and financial systems and general
economic and market conditions. There can be no assurance that such
information will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
forward-looking information.
Important factors that could cause actual results to differ
materially from Bluedrop’s expectations include general global economic
conditions. For additional information with respect to risk factors
applicable to Bluedrop, reference should be made to Bluedrop’s
continuous disclosure materials filed from time to time with securities
regulators, including, but not limited to, Bluedrop’s Annual Information
Form and Management’s Discussion and Analysis of Results of Operations
and Financial Condition for the year ended September 30, 2018. The
forward-looking information contained in this release is made as of the
date of this release and Bluedrop does not undertake to update publicly
or revise the forward-looking information contained in this release,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws.
Neither the 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.
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