Bluedrop Releases Q2 2018 Financial Results

Bluedrop Performance Learning (TSXV:BPLI), an innovator in both the development of workplace e-learning and simulation reported its financial results for the quarter ended March 31, 2018.

The company said that the 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. The gross profit was $2.3 million, a decrease of $0.3 million over the same period last year.

As quoted in the press release:

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.

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.”

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