TORONTO, May 28, 2018 (GLOBE NEWSWIRE) -- Lingo Media Corporation (TSX-V: LM ) (OTC:LMDCF) (FSE:LIMA) ("Lingo Media" or the “Company”), a global provider of digital and print-based English Language Learning solutions, announces its financial results for the first quarter ended March 31, 2018. All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.
“During the first quarter of 2018, we invested $257,434 in our digital content library and learning management system to position the Company for future growth. Due to longer than expected sales cycles, we did not generate significant revenue this past quarter,” said Khurram Qureshi, CFO of Lingo Media. “We believe we are on the right track with a very deep and active sales pipeline and it’s now a matter of contract conversions. In addition, the Company is pursuing various corporate development initiatives and M&A opportunities to unlock value for shareholders.”
Q1 2018 Operational Highlights
- completed the development of a Learning Access Point ( ELL LAP )
- advanced the development of ELL Technologies’ online Spanish course
- continued to market and sell, English For Success , a series of lessons and activities derived from ELL Library as a premium solution for governments and educational institutions
Subsequent Events
- completed the first installation of the ELL LAP under the strategic alliance with HP Inc. at the Universidad Autonoma de Chiapas in Mexico
- closed sales contracts with Gale, a part of Cengage Learning, with universities in Thailand & Japan, expanding the Company’s reach into Asia
- closed sales contract with the municipality of Floridablanca in Colombia, secured through the distribution partnership with E-Training SAS
Financial Highlights for the First Quarter Ended March 31, 2018
| First Quarter Ended March 31 st | 2018 | 2017 | |||
| Revenue | $ | 80,355 | $ | 597,977 | |
| Operating expenses | 349,085 | 269,618 | |||
| Development costs | 257,434 | - | |||
| Income before amortization, share-based payments, depreciation, finance charges and taxes | (526,164 | ) | 328,359 | ||
| Amortization, share-based payments, and depreciation | 25,061 | 295,661 | |||
| Finance charges, taxes, foreign exchange | (7,132 | ) | 28,753 | ||
| Total expenses | 624,448 | 594,032 | |||
| Net profit | (544,093 | ) | 3,945 | ||
| Total comprehensive income | (544,311 | ) | 3,727 | ||
| Earnings per share | $ | (0.02 | ) | $ | 0.00 |
- Revenue for the period ended March 31, 2018 totalled $80,355 as compared to $597,977 in 2017 due to extended sales cycles
- Operating expenses for the period ended March 31, 2018 totalled $349,085 compared to $269,618 in 2017
- Development costs for the period ended March 31, 2018 totalled $257,434 compared to $nil in 2017 as the company previously capitalized all development costs as intangible assets
- Net loss for the period ended March 31, 2018 was $544,093 or $(0.02) per share (basic) based on 35.5 million weighted average number of common shares as compared to net profit of $3,945 for the same period 2017 or $0.00 per share (basic) based on 35.5 million weighted average number of common shares
- Loss before amortization, share-based payments, depreciation, finance charges and taxes were $526,164 for Q1-2018 compared to income of $328,359 for Q1-2017
The unaudited condensed interim financial statements for the quarter ended March 31, 2017 and Management Discussion & Analysis are available at www.sedar.com .
About Lingo Media
Lingo Media is a global provider of best-in-class digital and print-based English language learning solutions that are ‘ Changing the way the world learns English ’.
Developed for learners of English at every level, Lingo Media’s ELL Technologies products combine a vast content library with proprietary technology. ELL Technologies’ intuitive dashboards enable students to track and manage their progress, and allow teachers to organize and interact with students, providing ongoing support. Lingo Media’s Lingo Learning division is a print-based publisher of English language learning programs in China.
Lingo Media’s product and program are marketed through established sales channels to key education, government and business organizations in Latin America and China and continues to extend its global reach and expand its product offerings.
Follow Lingo Media On:
Facebook: https://www.facebook.com/LingoMedia Twitter: @LingoMediaCorp YouTube: https://www.youtube.com/lingomedialm LinkedIn: https://www.linkedin.com/company/lingo-media-corporation RSS: http://feeds.feedburner.com/LingoMedia
For further information, contact: Lingo Media
Kim Nguyen, Director of Corporate Communications Tel: (416) 927-7000 Email: knguyen@lingomedia.com To learn more, visit us at www.lingomedia.com
Portions of this press release may include "forward-looking statements" within the meaning of securities laws. These statements are made in reliance upon Sections 21E and 27A of the Securities Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. These statements are based on management's current expectations and involve certain risks and uncertainties. Actual results may vary materially from management's expectations and projections and thus readers should not place undue reliance on forward-looking statements . Lingo Media has tried to identify these forward-looking statements by using words such as "may," "should," "expect," "hope," "anticipate," "believe," "intend," "plan," "estimate" and similar expressions. Lingo Media’s expectations, among other things, are dependent upon general economic conditions, the continued and growth in demand for its products, retention of its key management and operating personnel, its need for and availability of additional capital as well as other uncontrollable or unknown factors. No assurance can be given that the actual results will be consistent with the forward-looking statements. Except as otherwise required by US Federal securities laws, Lingo Media undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason . Certain factors that can affect the Company's ability to achieve projected results are described in the Company's filings with the Canadian and United States securities regulators available on www.sedar.com or www.sec.gov/edgar.shtml .
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