Company Continues its Research and Development Investments to Deliver New Products
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 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.”
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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Bernie BeckettChief Financial OfficerBluedrop Performance Learning Inc.[email protected]Phone: 709-739-4938