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 June 30, 2019. Details of the quarterly results can be found at https://www.otcmarkets.com/stock/SCIL/disclosure.
The company continued to make progress on its product development roadmap and operational improvements, and a mid-year renewal with its largest value-added reseller in China helped boost sales in the second quarter. Despite this, the financial results for the second quarter were below expectations and do not reflect these operational gains. Total sales for the second quarter were 10 percent below the second quarter of 2018, driven in part by the timing of larger transactions and a new field sales team for K-12. The K-12 market purchase cycle traditionally trends to the third quarter, and in early July the company booked its largest deal in two years, over $600,000. This early third quarter sale is expected to be a harbinger of sales growth in the second half.
This past quarter Scientific Learning continued its focus on addressing customer feedback, and it made progress in converting its products to HTML 5. In July the company released two additional Flash-free products, well in advance of the 2019-2020 school year.
The company also made several strategic operational improvements in the second quarter – rebuilding the marketing team and unifying the K-12 sales team under one leader. These actions are focused on improving cost efficiencies as well as expanding the reach of Scientific Learning’s solution to more learners over time.
“We are pleased with the employees focus on improving the customer experience,” said Jeff Thomas, CEO of Scientific Learning. “Improving our learning solutions, driving cost efficiencies and reaching new customers will benefit our customers and should improve shareholder value over time.”
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.