ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)--

Bluedrop Performance Learning (“Bluedrop”) (TSX-V: BPLI) today reported its financial results for the three months ended June 30, 2017.

Revenue for the three months ended June 30, 2017 was $6.5 million, up from $5.6 million for the same period in the previous year, an increase of 14%. Gross profit for the period was $2.6 million, an increase of $0.1 million over the three-month period ended June 30, 2016. Pre-tax profit was $0.1 million for the current quarter compared to $0.3 million for the same period in the previous year. Pre-tax profit for the three months ended June 30, 2017 was $0.2 million compared to $0.3 million for the same period in the previous year. Net profit for the current quarter and the comparable quarter last year was $0.1 million for both quarters.

Revenues increased in the third quarter this year compared to the same period last year as a result of higher revenues in the Training and Simulation business unit offsetting lower revenues in the Learning Networks business unit. An increase in simulator construction and courseware development in the current year quarter in the Training and Simulation business unit accounted for the $1.0 million increase in revenues or 22% over the comparable quarter last year. Revenues of $1.0 million in the Learning Networks business unit for the current quarter were down 15% compared to the same period last year due to lower product revenues. Gross margin remained constant quarter over quarter at $2.5 million.

Expenses of $2.4 million in the third quarter this year increased by $0.2 million over that of the comparative quarter last year. The Company recorded a provision of $0.3 million for an aged account balance in the third quarter this year and recognized the provision in other gains and losses. Investment in research and development costs decreased from $1.1 million in the prior period to $0.6 million in the current quarter and government assistance decreased from $1.4 million in the prior period to $0.4 million in the current quarter. These decreases are primarily attributed to development of the rear crew mission trainer nearing completion. Other expense categories in the consolidated statement of comprehensive income for the three months ended June 30, 2017 were lower by $0.6 million in the aggregate compared to the same quarter last year.

For further details, please see the Financial Statements and Management’s Discussion and Analysis for the quarter ended June 30, 2017 which are available on the Company’s web site at www.bluedrop.com or on SEDAR at www.sedar.com.

Commenting on the quarterly results of Bluedrop, Founder and CEO Emad Rizkalla said “It was another good quarter for Bluedrop financially and operationally. We are presently in the final stages of delivering the rear crew mission trainer to Boeing in Philadelphia and we look forward to having more end user demonstrations and of course getting our first unit sold. The Training and Simulation business unit had improved revenues mostly associated with the previously announced third-party simulator sale and continue to deliver against its strong backlog. Learning Networks business unit had a softer quarter as it transitions into its compliance and worker passport programs. Learning Networks has some large proposals outstanding that we are optimistic will be closed in the next quarter or two. Overall, a strong quarter and we continue to invest in our technology and working hard to make 2017 another successful year.”

About Bluedrop

Bluedrop Performance Learning Inc. (TSX-V: BPL) is an innovator in both the development of workplace e-learning and simulation as well as the way large organizations deliver, track and manage training. Our two divisions serve the world’s leading aerospace and defence organizations as well as broad cross sections of organizations focused on managing system wide health and safety and developing the skills of external workforces. Bluedrop is creating the workforce of the future by improving the effectiveness, speed and costs of training delivery and management. For more information, visit www.bluedrop.com

This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements, other than statements of historical fact included in this release, constitute forward-looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the operational efficiencies associated with the integration of technological and financial systems and general economic and market conditions. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.

Important factors that could cause actual results to differ materially from Bluedrop’s expectations include general global economic conditions. For additional information with respect to risk factors applicable to Bluedrop, reference should be made to Bluedrop's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, Bluedrop's Annual Information Form and Management’s Discussion and Analysis of Results of Operations and Financial Condition for the year ended September 30, 2016. The forward-looking information contained in this release is made as of the date of this release and Bluedrop does not undertake to update publicly or revise the forward-looking information contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither the 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.

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