Revenues Drop as Company Continues its Research and Development Investments
ST. JOHN’S, Newfoundland and Labrador–(BUSINESS WIRE)–Bluedrop Performance Learning (“Bluedrop”) (TSX-V:BPLI) today reported its financial results for the three months ended December 31, 2018.
Revenue for the three months ended December 31, 2018 was $3.9 million, down from $5.1 million for the same period in the previous year, a decrease of 24%. Gross profit for the period was $1.6 million, a decrease of $0.3 million over the three-month period ended December 31, 2017. Pre-tax loss was $1.6 million for the current quarter compared to a loss of $0.4 million for the same period in the previous year. After tax loss for the three months ended December 31, 2018 was $1.1 million compared to a loss of $0.3 million for the same period in the previous year.
Revenues decreased in the first quarter this year compared to the same period last year due to lower revenues in the Training and Simulation business unit. Most of that decrease was for simulation products where we had no revenue recognition in the first quarter of fiscal 2019 versus $1.0 million in the comparable quarter from last year. Gross profit of $1.6 million was down by $0.3 million in the current quarter compared to the same quarter in the previous year. Expenses for the quarter were up $0.8 million from that of the same quarter in the previous year. The largest expense increase was in research and development costs which increased by $0.7 million in the period compared to the same quarter in the previous year. The Company continued to pay down long term debt and had cash of $0.7 million at the end of the quarter with no draw on its credit facilities.
Revenues of $1.0 million in the Learning Networks business unit for the first quarter of the current year were up 71% compared to the same period last year due to increased contract awards in the business unit.
Bluedrop continued its investment trend in its research and development efforts with $1.2 million of investment in the quarter in programs to build new and stronger intellectual property based products in both business units.
For further details, please see the Financial Statements and Management’s Discussion and Analysis for the quarter ended December 31, 2018 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 continued to have another slower quarter for the Training and Simulation business unit while we were encouraged with the increase in revenues for the Learning Networks business unit. The Learning Networks business unit continues to be extremely busy in delivering content and finalizing its new service offering to meet the recent contracts awarded for its SaaS business but cannot recognize revenues until the systems go live. Training and Simulation is expected to return to more normal levels of revenues as several major programs finally come on line. We also expect that product revenues will increase as we deliver against existing orders for our new rear crew training devices although they may not match previous year quarterly timing. We remain committed to our business plan and to investing in both business units and to their product strategies and expect that these investments will yield positive results over the coming years.”
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.
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Media:Bernie BeckettChief Financial OfficerBluedrop Performance Learning Inc.[email protected]Phone: 709-739-4938