Blackline GPS Corp.

Blackline GPS Corp.

September 29, 2010 09:00 ET

Blackline GPS Corp. Reports Third Quarter Revenue Increase of 242% Over Same Quarter Prior Year

CALGARY, ALBERTA--(Marketwire - Sept. 29, 2010) -


Blackline GPS Corp. (TSX VENTURE:BLN) ("Blackline" or the "Company") is pleased to report its financial results for the third quarter ended July 31, 2010.

Revenue for the three months and nine months ended July 31, 2010 was $624,289 and $1 ,496,974 respectively, compared to $182,527 and $766,484 for the same periods in the prior year, representing an increase of approximately 242% and 95% respectively. Revenue for the third quarter of 2010 was $624,289 compared to $556,170 for the second quarter of 2010, an increase of approximately 12%. The increase in revenue resulted in a gross margin of $158,674 for the third quarter of 2010 compared to $93,986 for the second quarter of 2010, an increase of approximately 69%.

The increase in revenues reflects a broad acceptance of the Company's retail products in commercial business applications as well as the introduction of the Company's lone worker safety product for enterprise ready deployment. The Company has been focused on commercial and industrial markets, leading with industrial safety. The Company's Loner GPS ™ product represented approximately 35% of the total product sales for the quarter, indicative of the increasing opportunity in this market. Retail business for the Company remains stable and growing.

"We have been very pleased with the positive response to our industrial and commercial based products and solutions", said Clark Swanson, President and CEO. The Company launched its first enterprise wide deployment to a Fortune 500® commercial transportation company during the period, a significant milestone for the Company and its Loner GPS™ product. "Since the new release of our enterprise version of Loner Portal for the enterprise safety market this quarter, we have seen significant demand for Loner GPS™, a product created to assist companies in meeting recently legislated requirements for lone worker safety."

During the quarter, the Company also successfully contracted with the largest purveyor of over­the-road diesel fuel in the United States, resulting in the distribution of the Company's Entourage PS™ product in over 250 stores across Canada and the United States. "Blackline has an incredible opportunity to capitalize on commercial applications for its traditionally retail-based products. We plan to continue our focus on these commercial opportunities, which can be exploited with little or no additional investment in our existing retail product lines", said Clark Swanson, President and CEO. "The Company launched Progress GPS, a new product offering designed to assist shipping and delivery companies in cost effectively tracking shipments. This is just one example of Blackline's ability to offer commercial solutions with our existing product line."

The net loss for the three and nine months ended July 31, 2010 was $812,572 and $2,411,238 respectively, compared to $561 ,71 6 and $2,320,546 for the same periods in the prior year. The Company continues to make significant investments in research and development, with particular focus on products and business applications to serve the industrial and commercial markets. During the third quarter, the Company restated its first quarter results for an overstatement of cost of sales and expenses for $28,178 and an understatement of inventory of $28,178, resulting in an overstatement of net loss of $28,178. This error was discovered during the third quarter and resulted from processing errors related to difficulties experienced with the introduction of a new enterprise resource planning system at the start of the fiscal year that have since been addressed by the Company.

Subsequent to the quarter end, on August 18, 2010, the Company completed a non-brokered private placement in which it issued 11,226,000 units at a price of $0.10 per unit for gross proceeds of $1 ,1 22,600. The Company intends to use the net proceeds of the private placement for general corporate and working capital purposes.

The Company's unaudited consolidated financial statements and Management's Discussion and Analysis for the three months ended July 31, 2010 are available at the Company's profile on SEDAR at

About Blackline GPS Corp.

Blackline GPS, Corp., integrates satellite GPS tracking with cellular GSM technology to provide innovative wireless products and service solutions to address the growing markets in vehicle and watercraft security and recovery, location-sharing, workforce management and family efficiency concepts. Headquartered in Calgary, Alberta, Blackline GPS manufacturers Loner GPS™ and Loner Mobile™. Blackline also developed micro-fleet solutions for integrated monitoring, loss prevention and safety. Technology, dedication and vision combine to create an ever-growing suite of tools designed to Protect. Share. ConnectTM. For additional information please visit Blackline GPS on the web at

A copy of this news release will be available at Certain statements included in this presentation may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be taken as guarantees of future performance or results. Forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including: the impact of general economic conditions, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates and stock market volatility. Risks facing the Company are more fully described in the Company's Management Discussion and Analysis dated September 28, 2010. The forward-looking statements contained in this news release are made as at the date of this news release and Blackline does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither 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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