ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)--
Q3 Revenues up 38% and Continued Strategic Investments in Research and Development and a New Simulator Production Facility
Bluedrop Performance Learning (“Bluedrop”) (BPLI.V) today reported its financial results for the three months ended June 30, 2019.
Revenue for the three months ended June 30, 2019 was $6.8 million, up from $5.0 million for the same period in the previous year, an increase of 38%. Gross profit for the period was $3.4 million, an increase of $1.1 million over the three-month period ended June 30, 2018. Pre-tax income was $0.2 million for the current quarter compared to a loss of $0.2 million for the same period in the previous year. After tax profit for the three months ended June 30, 2019 was $0.1 compared to a loss of $0.2 million for the same period in the previous year.
Revenues increased in the third quarter by $1.9 million compared to the same period last year due to higher revenues in the both the Training and Simulation business unit and the Learning Networks business unit. Simulation product revenues increased by $1.6 million and software licences and subscriptions increased by $0.6 million versus the same period last year. Expenses for the quarter were up $0.6 million from that of the same quarter in the previous year. The largest increase was in research and development cost which increased by $0.6 million in the quarter versus the prior comparative period. The Company paid long-term debt of $1.8 million in the nine months ended June 30, 2019 in accordance with scheduled repayment terms.
Bluedrop continued its investment trend in its research and development efforts with over $1.5 million of investment in the quarter in programs designed to build new and stronger intellectual property-based products. The Company has invested $4.3 million in research and development in the first nine months of this fiscal year versus $2.1 million for the same period in the previous year. The Company invested $0.5 million in the quarter and $0.9 million year to date in capital expenditures for the new production and innovation center in Halifax and additional hardware and software infrastructure to meet its expected growth demands and production capabilities.
For further details, please see the Financial Statements and Management’s Discussion and Analysis for the quarter ended June 30, 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 “It was a good quarter for both the Training and Simulation and the Learning Networks business units. Both business units have started to deliver on existing and new contracts based on our own intellectual property products and services. We also established our new integration and production facility in Halifax where we have several simulator products under assembly. With the most recent contract wins and a strong and growing pipeline we believe our investments in simulation products and subscription services will start to produce stronger results over the coming quarters and more importantly the coming years. Overall, we are very pleased with the progress both business units are making on their product strategies and the strong order book we are building for both our new products and services as well as our traditional service businesses.”
Bluedrop Performance Learning Inc. (BPLI.V) is an innovator in both the development of workplace e-learning and simulation as well as the way large organizations deliver, track and manage training. Our two divisions serve the world’s leading aerospace and defence organizations as well as broad cross sections of organizations focused on managing system wide health and safety and developing the skills of external workforces. Bluedrop is creating the workforce of the future by improving the effectiveness, speed and costs of training delivery and management. 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.
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.