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Blackline GPS Corp. (TSX VENTURE:BLN) ("Blackline" or the "Company") is pleased to report its financial results for the second quarter ended April 30, 2011.
As of April 30, 2011 the Company has a cash balance of $7,105,231 compared to $951,140 as at October 31, 2010. The additional funds were obtained through a private placement completed on February 3, 2011 for gross proceeds of $8,000,000. The Company raised these funds to enable it to execute on its plan to shift its product and sales focus into the higher margin Commercial and Industrial markets for its technology. This initiative commenced with the appointment of Cody Slater to the role of CEO in January of this year. Mr. Slater is the former CEO and founder of BW Technologies (now BW Technologies by Honeywell). The Company believes that the capital raised is sufficient to allow it to execute on its plan and reach profitability.
Revenue for the three months and six months ended April 30, 2011 was $386,510 and $763,332 respectively compared to $556,170 and $872,685 for the same periods ending April 30, 2010, a decrease of 30.5% and 12.5% respectively. Although overall revenue decreased, the service revenue for the three and six month periods ended April 30, 2011 increased by 63.0% and 70.7% over the three and six month periods ended April 30, 2010 due to the increasing customer base of the Company. Product revenue decreased due to the shift in the focus to the industrial safety market for which the Company is currently setting up its sales channels. The Company expects these channels will begin to receive new products released under industrial and commercial lines beginning this summer. The Company has reduced its number of low margin retail partners affecting its product sales in this category and mitigating costs associated with the retail consumer product line.
Adjusted EBITDA was approximately $(793,500) and $(1,505,300) respectively for the three and six month periods ended April 30, 2010 compared to approximately $(733,500) and $(1,481,900) for the prior year, a decrease of 8.2% and 1.6% respectively. Adjusted EBITDA is used by the Company to better reflect the results of its ongoing operations and represents a more accurate view of its achievement of targets.
For full details please refer to financials and MD&A posted on Sedar.com.
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, with 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™.
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.