ST. JOHN’S, Newfoundland--(BUSINESS WIRE)--Bluedrop Performance Learning (“Bluedrop”) (TSX-V: BPL) today reported its financial results for the three months ended December 31, 2016.
Revenue for the three months ended December 30, 2016 was $4.7 million, down from $5.6 million, a decrease of 15% on the same period in the previous year. Gross profit for the period was $2.1 million, a decrease of $0.8 million over the three month period ended December 31, 2015. Pre-tax income was a loss of $0.4 million for the three month period compared to income of $0.5 million in the same period in the previous year. Included in the three month period ending December 31, 2015 was additional revenue recognized upon the finalization of a fixed price percent complete project at a lower than expected cost. After tax income for the period was a loss of $0.4 million compared to after tax income of $0.2 million for the same period in the previous year.
Bluedrop continued with its combined research and development investments as in previous periods. The Training and Simulation business unit invested $0.4 million in the quarter for costs associated with the development of the Boeing Chinook rear crew trainer program. This investment was expensed in the quarter and was completely offset with funding from the deferred development fund from Boeing and with assistance from the National Research Council. The Learning Networks business unit invested $0.3 million in the quarter for costs mostly associated with enhancements to the in service Bluedrop 360 platform. This investment was expensed net of an offset of $0.1 million of government assistance in the quarter.
For further details please see the Financial Statements and Management’s Discussion and Analysis for the quarter ended December 31, 2016 which are available on the Company’s web site at www.bluedrop.com or on SEDAR at www.sedar.com.
Commenting on the results for the quarter, Founder and CEO Emad Rizkalla said “The revenue decrease was in the Training and Simulation business unit as revenue for the Learning Networks business unit was up 20% quarter over quarter. Training and Simulation has had some delays in getting contracts signed resulting in lower then expected revenues. On the positive side backlog increased in the quarter to $50 million, a very strong number for us. We always take a longer-term view of the business and getting the timing right on larger contracts is not always possible but with our strong backlog we feel we are in a good position. We see this fiscal year as a critically important year for product sales. We continued in the quarter with investments in product development and sales and marketing as we believe this will reward us with more new product sales and expanded margins over the coming years. These investments will shape the future for Bluedrop and help secure its status as a market innovator and leader, providing even more compelling solutions for our customers.”
Bluedrop Performance Learning Inc. (TSX-V: BPL) 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
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures. Non-GAAP measures do not have a standardized meaning prescribed by the Company’s GAAP and therefore should not be compared with similar measures presented by other companies. Management has provided these measures as we believe they are useful supplemental information to users in assessing the Company’s operating and financial performance. These measures should not be used as an alternative for performance measures calculated in accordance with GAAP.
(1) Backlog is a non-GAAP measure that represents the expected value of orders we have received but have not yet executed. The Company considers an item part of backlog when we have a legally binding commercial agreement with a client that includes enough detail about each party’s obligations to form the basis for a contract or an order. Some contracts are executed over a long-term period and are subject to renewal periods. A contract renewal item is only included in backlog when the customer has authorized the renewal.
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, 2016. 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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