ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)--Bluedrop Performance Learning (“Bluedrop”) (TSX-V: BPLI) today reported its financial results for the quarter ended March 31, 2018.
Revenue for the three months ended March 31, 2018 was $6.1 million, down from $6.9 million for the same period in the previous year, a decrease of 11%. Gross profit for the period was $2.3 million, a decrease of $0.3 million over the three-month period ended March 31, 2017. Pre-tax loss was $0.2 million for the current quarter compared to profit of $0.8 million for the same period in the previous year. After tax loss for the three months ended March 31, 2018 was $0.1 compared to a $0.4 million profit 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 slightly lower revenues in the Training and Simulation business unit and the Learning Networks business unit. Gross profit remained strong in the quarter at $2.3 million down from the comparative quarter in the previous year based on lower revenues as explained above. Expenses for the quarter were up $0.7 million from that of the same quarter in the previous year. Government assistance and other funding in the quarter was down by $0.7 million as a result of higher prior year assistance related to development of the Chinook Rear Crew Mission Trainer in fiscal 2017.
Bluedrop continued its investment trend in its research and development efforts with over $0.7 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 period ended March 31, 2018 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 Bluedrop even with the slight drop in our quarterly financial results. We closed a record amount of business for the BLN business unit since the start of this year for primarily multi year SaaS based services and while we cannot recognize revenues until the systems go live it sets us up for a strong base of revenues for the coming years. Cash collections, subsequent to the quarter end, were very strong as cash flows and revenue recognition are often not aligned for SaaS projects. The Training and Simulation business unit had some program start delays that impacted short term revenues that we fully expect will work themselves out in the coming quarters. We are still very optimistic that our new rear crew training devices will contribute to the future revenues while understanding it will take some time to get through the long lead times of the procurement cycles. Overall, we are very pleased with the progress both business units are making on their product strategies and expect 2018 to be another successful year.”
Bluedrop Performance Learning Inc. (TSX-V: BPLI) 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, 2017. 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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