Blackline GPS Corp. Reports 35% Increase in Q2 Revenue

CALGARY, ALBERTA--(Marketwire - June 26, 2012) -

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Blackline GPS Corp. (TSX VENTURE:BLN) ("Blackline" or "Company") today released results for the three and six month periods ended April 30, 2012.

Q2 2012 highlights:

• 35% increase in quarterly revenue over Q2 FY2011 and 52% increase in semi-annual revenue over FY2011
• Q2 Gross margin increased by 228% over Q2 FY2011 and semi-annual gross margin increased by 210% over FY2011
• Received Platinum Govie award for Flat Track, the Company's ultra-thin covert tracking product
• Received Platinum Govie award for the Loner Safety Monitoring Device (Loner SMD), the Company's newest Industrial Safety product.

"Blackline has fully transitioned to a business-to-business service provider as we now have the award winning products, effective margins, and open sales channels," says Cody Slater, CEO of Blackline. "Going into the second half of FY2012 the Company is now positioned to look forward to continual growth as we expand our sales channels and product portfolio."

Financial Highlights:

Financial Information

Although the Company began accepting orders for the new Loner SMD products in Q2, shipments did not begin until Q3. This resulted in a reduction of the Company's safety product sales for the quarter as customers ceased ordering the legacy product and awaited the release of the new Loner SMD. The Company was still able to produce strong year-on-year revenue growth with a 35% increase for quarterly and 52% increase for semi-annual revenue compared to the same periods in the prior year.

The Company continued its strong improvement in gross margin over the prior year, both as contribution margin - up 228% (210% for the six month period) and as a percentage of sales - up 135% (105% for the six month period). The Company's further drive into the business-to- business markets and increasing service margins will combine to maintain the higher margins.

Adjusted EBITDA improved by approximately $64k from Q2 FY2011 and $173K for the six month period due to the impact of increased revenue and greater margins partially offset by the impact of growth in the sales and marketing expenses necessary for the Company's expansion. The Company expects to see positive impacts from the increased Sales and Marketing investments in late FY2012.

Adjusted EBITDA is defined as earnings before interest expense, depreciation and amortization, stock-based compensation, income taxes, research and development costs for the development of new products, and one-time non-cash impact events.

Net loss decreased by $84K for the three month period and $16K for the six month period over the same periods of the prior year due to the offsetting impacts of larger margins in the current year against increased sales, marketing and development costs.

The Company's unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the three month period ended April 30, 2012 are available at the Company's profile on SEDAR at www.sedar.com. All results are reported in Canadian dollars.

About Blackline: Blackline GPS is a wireless location leader that develops, manufactures, and markets products and services for worker safety monitoring, covert tracking, and consumer applications. Blackline solutions deliver safety, security, and location awareness through innovative wireless hardware and custom user interfaces, including web, mobile, messaging, and web services. Our mission is to become the leading supplier of wireless connected worker safety monitoring and covert tracking products in the world. Blackline products allow our customers to protect their personnel and valued assets, share the conditions of their environment, and connect with emergency services when necessary. Blackline solutions Protect. Share. Connect.®