Broadband Learning Corporation Reports 2008 Q3 Results, Announces Management Change
November 28 2008 - 12:11PM
Marketwired
Broadband Learning Corporation ("Broadband Learning") (TSX VENTURE:
BLC), a participant in the rapidly expanding distance learning
market, today reported its unaudited financial results for the
three and nine months ended September 30, 2008.
Three months ending September 30,
--------------------
($000s, except per share amounts) 2008 2007
--------------------
--------------------
Sales $36 $1,044
Gross Profit (545) 326
Loss from operations (2,246) (343)
Net income (loss) ($2,246) ($332)
Earnings (loss) per share (basic & diluted) ($0.08) ($0.01)
Nine months ending September 30,
--------------------
($000s, except per share amounts) 2008 2007
--------------------
--------------------
Sales $319 $2,183
Gross Profit (922) 753
Loss from operations (5,680) (1,312)
Net income (loss) ($5,680) ($1,288)
Earnings (loss) per share (basic & diluted) ($0.20) ($0.04)
Total assets $8,352 $3,409
Revenues for the third quarter and first nine months of 2008 are
down significantly from 2007, reflecting the fact that through the
end of May, 2008 the Company's full efforts were focused on
executing the first phase of a roll-out of installation of the i-vu
Systems. During the third quarter, Broadband Learning attempted to
deal with i-vu over i-vu's failure to generate any revenues to date
on this venture and i-vu's failure to make a number of payments due
to Broadband Learning. On September 8, Broadband Learning received
a demand for arbitration from attorneys representing i-vu which
seeks termination of the Definitive Collaboration Agreement between
i-vu and Broadband Learning. On September 14, the Company
decommissioned elements of the Systems that had been installed to
date. On September 18, i-vu commenced an action in the United
States District Court for the District of Utah claiming damages
relating to the decommissioning and requesting injunctive relief
that would permit i-vu to operate the installed Systems. A hearing
was held on September 26 and September 29, following which a ruling
was issued on October 9 by the United States District Court denying
i-vu's request for injunctive relief. Broadband Learning has filed
answers and counterclaims to both the arbitration action and the
federal court action in which it denies liability and asserts
defences against i-vu's claims, and asserts counterclaims in excess
of US$5 million against i-vu. An arbitrator has been appointed in
this case and the case will proceed on a schedule determined by the
arbitrator. Broadband Learning is now returning its attention to
pursuing opportunities and sales in its more traditional areas of
distance learning.
Gross Profit for the third quarter and first half of 2008 is
down from 2007, reflecting the significant costs of maintaining the
i-vu Systems that have not yet begun to generate revenues. In
addition during the third quarter, inventory related to the i-vu
venture was written down by $166 thousand resulting in a further
reduction of Gross Profit for the quarter and the year.
Operating Loss and Net Loss for the third quarter and first half
of 2008 all increased significantly from 2007 primarily because
very substantial efforts and costs have been invested in this
venture, while revenues have not yet commenced.
At a board meeting earlier this week, Edwin Giles submitted his
resignation as president of Broadband Learning. Bob Dameron has
been appointed president in addition to his responsibilities as
CEO. Ed Giles will remain a director of Broadband Learning.
About Broadband Learning Corporation
Broadband Learning Corporation produces, delivers, supports and
manages distance learning content for professionals, corporations
and consumers using proprietary technology and worldwide
distribution capabilities. Broadband Learning is addressing the
professional development market by providing a patented
Internet-based learning system with on-demand access, multimedia
educational resources, and administrative management capabilities.
Broadband University is a brand name used by Broadband Learning's
wholly-owned subsidiary Broadband Learning Inc. to focus on the
distance learning markets using patented technology under a license
agreement with School Improvement Network, Inc. of Salt Lake City,
Utah. In 2007, Broadband Learning formed a new subsidiary, BL Media
Inc. to undertake the Company's digital media operations.
This press release may contain forward-looking statements
relating to, among other things, Broadband Learning's expectations
concerning future product demand and growth opportunities and
customer acceptance of its products. These forward-looking
statements are neither promises nor guarantees, but involve risks
and uncertainties that may cause actual results to differ
materially from those in the forward-looking statements. Broadband
Learning disclaims any obligation to publicly update or revise any
such statements.
This news release will not constitute an offer to sell or the
solicitation of any offer to buy the securities in any
jurisdiction. The securities offered will not be and have not been
registered under the United States Securities Act of 1933 and may
not be offered or sold in the United States.
The TSX Venture Exchange has neither approved nor disapproved
the contents of this press release.
Contacts: Broadband Learning Corporation Bob Dameron President
& CEO (801) 290-5066 Website: www.broadbandlearning.com
Broadband Learning (Tier2) (TSXV:BLC)
Historical Stock Chart
From May 2024 to Jun 2024
Broadband Learning (Tier2) (TSXV:BLC)
Historical Stock Chart
From Jun 2023 to Jun 2024