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Blackline GPS Corp. (TSX VENTURE:BLN) ("Blackline" or the "Company") is pleased to report its financial results for the first quarter ended January 31, 2011.
Revenue for the three months ended January 31, 2011 was $376,822 compared to $316,515 for the same period ending January 31, 2010, an increase of 19%. The increase in revenue comes from growth in the Company's service customer base. The net loss of ($773,525) was reduced for the three months ended January 31, 2011 compared to ($797,405) for the same period last year. The company invested more into Research and Development to bring multiple new products to market and Operating costs increased due to a one-time significant employment of professional fees for tax compliance in the three month period ended January 31, 2011 over the same period in the prior year. The increase in Research and Operating costs were more than offset by the increased margin which went from ($3k) for the quarter in the prior year to $96k in the current quarter. The results for the Quarter do not include one large new US customer in the retail space whose purchase of over 100 thousand dollars' worth of product is being treated as deferred revenue due to the purchase terms.
The Company announced a financing in the quarter with Lightyear capital as agent in order to provide capital to fund operations, Research and Development and sales channel growth as the Company performs the transition to the industrial safety market. The brokered private placement in the amount of $4 million later closed on February 3rd, 2011 for an oversubscribed $8 million.
The quarter ending January 31, 2011 saw the beginning of the company's transition from its traditional retail market focus to the commercial and trial safety markets. As part of that change in focus on January 10, 2011, Mr. Cody Slater, founder of BW Technologies, a world leader in worker safety products joined the management team, taking the position of Chief Executive Officer. The addition to the management team reflects the company's increased focus on the industrial and commercial worker safety markets. The company aims to produce products for worker safety and commercial applications that result in greater profit margins and lower costs for the business. The company is pleased to be in the final stages of development for a series of new and innovative products which will replace legacy wares in these markets. New products to be released have been carefully engineered for specific industrial fit, form, and functions that provide meaningful competitive advantages. The company anticipates releasing these products to market over the remainder of fiscal 2011. Also in the quarter the company initiated discussions with several carriers, including Bell Mobility and Rogers Communications for channeling the LonerTM and Loner MobileTM lone worker safety products manufactured by Blackline.
Mr. Slater said, "Our new safety line of products and services will address a multitude of environments and customer demands for ensuring worker safety. These products along with our depth of management experience will help to establish Blackline as the industry leader in these emerging markets. We look forward to the remainder of the year as we continue to strengthen our product lines and sales channels, positioning Backline to become the world leader in the lone worker safety market.
About Blackline: Headquartered in Calgary, Canada, Blackline is an industrial safety and commercial product manufacturer. The company solutions address work environments focused on employee safety, while also offering connected hardware to improve security and communicate logistical information of company assets. The industrial business also aims to supply growing legislated and regulated markets, which exist largely around the globe, service plans which provide functionality based on product hardware. The company also maintains a suite of products and services which service the consumer and retail environment. Blackline's technology, dedication and vision combine to create an ever-growing suite of tools designed to Protect. Share. Connect™.
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