OAKLAND, Calif.--(BUSINESS WIRE)--Scientific Learning Corp. (OTC PINK:SCIL), a leading SaaS service provider that delivers neuroscience-based educational technologies, today announced it has released its unaudited financial results for the period ending March 31, 2019. Details of the quarter results can be found at https://www.otcmarkets.com/stock/SCIL/disclosure.
The company, as planned, did not experience sales growth during the first quarter, the seasonally lowest sales quarter of the year. The K-12 channel had a high hurdle to overcome from last year, with a large multi-year renewal in the first quarter of 2018 that significantly boosted first quarter sales last year. Despite the difficult comparison, this channel was able to realize success in renewal sales in the first quarter of 2019 with renewal rates over 100 percent, demonstrating that the product improvements made last year in the release of new Fast ForWord products, enhanced with SmartLearning Technology, have had lasting effects.
The company continued to make progress enhancing the product experience in the first quarter with the release of Content Acceleration to speed data delivery and performance, data anonymization to support student data security laws, and Single Sign-On with the products through ClassLink.
On April 18th, the company completed the restructuring of its $6 million in subordinated debt with the principal due date extended from April 2020 to October 2022, interest rate reduced from 15 percent to 9 percent, and warrant coverage increased by 5 million, with a new warrant exercise price of $0.40 per share.
“We appreciate the willingness of our debtholders to work with our company to provide more time for principal repayment, which provides us additional capital for uses like product development. Their ongoing support has been critical,” said Jeff Thomas, CEO of Scientific Learning. “Our resources and investments continue to be guided by customer feedback and our product improvements are tailored to improve the customer experience. The ability to extend our subordinated debt to 2022 and decrease the interest rate due on the principal allows us to further invest in the product roadmap. We look forward to seeing the results in our customer satisfaction and retention.”
About Scientific Learning Corp.
Based in Oakland, Calif., Scientific Learning is a leading SaaS education company that delivers neuroscience-based educational technologies. Scientific Learning’s programs have been used by more than 3 million learners in more than 2,500 K-12 schools in the United States and Canada, more than 300 private practice clinicians, thousands of students via a direct-to-consumer channel, and in over 55 countries via value-added resellers. The company’s Fast ForWord® programs cross-train foundational language and cognitive skills necessary for rapid English language development. Reading Assistant™ uses speech verification technology to provide real-time corrective feedback to students as they read and speak, in a manner similar to that of an individualized language and reading coach.
Safe Harbor Statement: The information posted in this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. The forward-looking statements in this release include, among others, statements regarding potential future sales results, and plans for investing in the Company’s products. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Factors which could cause results or events to differ from current expectations include, among other things: general economic and business conditions; availability of government funding for the purchase of the Company’s educational products; effects of potential geopolitical unrest and regional conflicts; competition; and various other factors beyond the Company's control. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements.