Scientific
Learning Corp. (OTC PINK:SCIL), a leading SaaS service provider that
delivers neuroscience-based educational technologies, today announced it
has released its unaudited financial results for the period ending March
31, 2019. Details of the quarter results can be found at https://www.otcmarkets.com/stock/SCIL/disclosure.
The company, as planned, did not experience sales growth during the
first quarter, the seasonally lowest sales quarter of the year. The K-12
channel had a high hurdle to overcome from last year, with a large
multi-year renewal in the first quarter of 2018 that significantly
boosted first quarter sales last year. Despite the difficult comparison,
this channel was able to realize success in renewal sales in the first
quarter of 2019 with renewal rates over 100 percent, demonstrating that
the product improvements made last year in the release of new
Fast ForWord products, enhanced with SmartLearning
Technology, have had lasting effects.
The company continued to make progress enhancing the product experience
in the first quarter with the release of Content Acceleration to speed
data delivery and performance, data anonymization to support student
data security laws, and Single Sign-On with the products through
ClassLink.
On April 18th, the company completed the restructuring of its $6 million
in subordinated debt with the principal due date extended from April
2020 to October 2022, interest rate reduced from 15 percent to 9
percent, and warrant coverage increased by 5 million, with a new warrant
exercise price of $0.40 per share.
“We appreciate the willingness of our debtholders to work with our
company to provide more time for principal repayment, which provides us
additional capital for uses like product development. Their ongoing
support has been critical,” said Jeff Thomas, CEO of Scientific
Learning. “Our resources and investments continue to be guided by
customer feedback and our product improvements are tailored to improve
the customer experience. The ability to extend our subordinated debt to
2022 and decrease the interest rate due on the principal allows us to
further invest in the product roadmap. We look forward to seeing the
results in our customer satisfaction and retention.”
About Scientific Learning Corp.
Based in Oakland, Calif., Scientific Learning is a leading SaaS
education company that delivers neuroscience-based educational
technologies. Scientific Learning’s programs have been used by more than
3 million learners in more than 2,500 K-12 schools in the United States
and Canada, more than 300 private practice clinicians, thousands of
students via a direct-to-consumer channel, and in over 55 countries via
value-added resellers. The company’s Fast ForWord® programs cross-train
foundational language and cognitive skills necessary for rapid English
language development. Reading Assistant™ uses speech verification
technology to provide real-time corrective feedback to students as they
read and speak, in a manner similar to that of an individualized
language and reading coach.
Safe Harbor Statement: The information posted in this release
contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. You can identify these
statements by use of the words “may,” “will,” “should,” “plans,”
“explores,” “expects,” “anticipates,” “continue,” “estimate,” “project,”
“intend,” and similar expressions. The forward-looking statements in
this release include, among others, statements regarding potential
future sales results, and plans for investing in the Company’s products.
Forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those projected or
anticipated. Factors which could cause results or events to differ from
current expectations include, among other things: general economic and
business conditions; availability of government funding for the purchase
of the Company’s educational products; effects of potential geopolitical
unrest and regional conflicts; competition; and various other factors
beyond the Company’s control. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, it can provide no assurance that such expectations will
prove to have been correct. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date made. Except as required by law, the Company assumes no obligation
to update or revise any forward-looking statements.
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