Blackline Safety posts record second quarter revenue
June 28 2018 - 9:00AM
Blackline Safety Corp. (TSX Venture:BLN), a leading manufacturer of
gas detection and connected safety solutions, announced its best
ever second quarter revenue, ended April 30, 2018.
“Our award-winning G7 product line — launched just
over six months ago — continues to drive Blackline’s top-line
growth,” said Cody Slater, Blackline Safety CEO and Chairman.
“Product and service revenue grew significantly, up 49% compared to
last year. Even stronger growth was shown in our contracted future
service revenues, up 83%, generated by customers adopting G7
through our leasing program.”
“With the recent introduction of our new G7 Insight program, we
have expanded our target market to include replacement of ordinary
‘beep-and-flash’ gas detectors currently offered by traditional gas
detection suppliers,” said Slater. “Not only has G7 Insight
generated considerable interest within our channels, it solves one
of the biggest problems for businesses that our competitors have
not been able to address — the ongoing need to prove compliance
with legislated safety regulations.” He added, “Every business
using gas detectors must ensure that all equipment is regularly
tested, periodically calibrated and continuously used by their
personnel. G7 Insight combines wireless technology, an online
compliance dashboard and business analytics software to deliver the
world’s first hands-free, comprehensive live view of
compliance.”
Looking into the next quarter, Blackline continues its
aggressive investment to further its channel expansion and increase
the breadth of its connected safety offering. This week’s press
release about the new G7 multi-gas pump cartridge for confined
spaces and leak checks marks the beginning of a series of
announcements about enhanced capabilities that will promote further
growth and expand Blackline’s leadership position in the world of
connected safety.
Highlights
- Total revenue of $3.8M, a 49% increase over the prior year’s
Q2
- Product revenue of $1.2M, a 57% increase over the prior year’s
Q2
- Service revenue of $2.5M, a 45% increase over the prior year’s
Q2
- European revenue of $724, a 158% increase over the prior year’s
Q2
- Contracted future service revenue grew to $5.2M, an 83%
increase over the prior year’s Q2
- Cash and short-term investments of $15.5M at end of Q2 FY
2018
- Added a key refinery customer in the Midwest United States that
deployed G7 using Blackline’s leasing program
- Named Manufacturer of the Year at the 2018 Oil & Gas
Awards
- Commissioned its new $1.1M manufacturing surface-mount
technology line that will reduce R&D time-to-market and
positively impact product margins beginning in Q4
Financial Highlights
The subsequent values in this release are in thousands, except
for percentages and per share data.
|
|
|
|
Quarter Ended April 30 |
Six-Months Ended April 30 |
|
2018 |
2017 |
Change |
2018 |
2017 |
Change |
Revenue |
$3,749 |
$2,524 |
49% |
$7,552 |
$5,040 |
50% |
Gross Margin |
$1,658 |
$972 |
71% |
$3,352 |
$2,223 |
51% |
Gross Margin Percentage |
44% |
39% |
15% |
44% |
44% |
0% |
Net Loss |
$(2,905) |
$(1,701) |
(71)% |
$(4,510) |
$(3,766) |
(20)% |
Net Loss excluding stock- based compensation expense |
$(1,676) |
$(1,613) |
(4)% |
$(3,177) |
$(3,094) |
(3)% |
Adjusted EBITDA |
$(104) |
$(243) |
57% |
$(239) |
$(434) |
45% |
Loss per Share |
$(0.07) |
$(0.06) |
|
$(0.12) |
$(0.13) |
|
|
|
|
|
|
|
|
Key Financial Information
Second quarter revenue was $3,749 compared to $2,524 in the
comparable quarter of the prior fiscal year, resulting in an
increase of 49% or $1,225.
Product revenue during the second quarter was $1,223, an
increase of 57% compared to $779 in the comparable quarter of the
prior fiscal year. This increase was driven by shipments of
Blackline’s G7c and G7x products in the period, particularly in
Europe with an increase of 158% in total revenues as the region
continues its strong growth in the current fiscal year.
Service revenue was $2,527, an increase of 45% compared to
$1,746 in the same period last year, attributed to new service
activations by end customers from the continued solid growth in
product sales and adoption of the Blackline Complete leasing
program.
Contracted future service revenue, representing the value of
future Blackline Complete lease commitments, was $5,236 as at April
30, 2018, an increase of 83% from Q2 FY2017.
Gross margin for the second quarter was $1,658 compared to $972
in the comparable quarter of the prior year, an increase of 71%
over the comparable period from the prior year.
Adjusted EBITDA was $(104) for the second quarter compared to
$(243) in the comparable quarter of the prior year. The increase in
the Adjusted EBITDA in the quarter is attributable to an increase
in revenues and gross margin quarter-over-quarter.
Blackline’s unaudited condensed consolidated interim financial
statements and management’s discussion and analysis on financial
condition and results of operations for the period ended April 30,
2018 are available at www.sedar.com. All results are reported in
Canadian dollars. To learn more about Blackline Safety, visit
www.blacklinesafety.com and follow Blackline on Twitter
@blacklinesafety.
About Blackline
Safety: Blackline Safety is a global
connected safety technology leader. Providing comprehensive
live-monitoring and wireless gas detection, we help teams working
in hazardous environments respond to emergencies in real-time and
manage efficient evacuations, accounting for everyone’s safety
along the way. With millions invested in technology research and
development, Blackline Safety is recognized for quality and
innovation. Our talented team of designers and engineers create and
manufacture in-house — from wearable technology and personal gas
detectors to cloud-hosted infrastructure and web-based interfaces
for global industry. We deliver the world’s first turn-key,
work-anywhere connected safety monitoring solution with gas
detection, 3G wireless, satellite communications, two-way
speakerphone, employee messaging and live monitoring to meet the
demanding safety challenges of organizations in over 200 countries.
For more information, visit www.BlacklineSafety.com.
Neither 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.
Cody Slater, CEO cslater@blacklinesafety.com
Blackline Safety Corp.Unit 101, 1215 13 Street SECalgary, AB
Canada T2G 3J4Telephone: +1 403 451 0327Fax: +1 403 451
9981www.BlacklineSafety.com
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