Broadband Learning Corporation
TSX VENTURE : BLC

Broadband Learning Corporation

April 30, 2007 20:49 ET

Broadband Learning Corporation Reports 2006 Results

SALT LAKE CITY, UTAH--(CCNMatthews - April 30, 2007) - Broadband Learning Corporation ("Broadband Learning") (TSX VENTURE:BLC), a participant in the rapidly expanding distance learning market, today reported its audited financial results for the three months and 12 months ended December 31, 2006.



Three months ended December 31: 2006 2005
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($000s, except per share amounts)
Sales $552 $595
Gross Profit $283 ($8)
Loss from continuing operations ($668) ($560)
Net income (loss) ($668) ($805)
Earnings (loss) per share ($0.03) ($0.05)

Twelve months ended December 31: 2006 2005
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Sales $2,243 $2,261
Gross Profit $1,072 $547
Loss from continuing operations ($2,242) ($1,194)
Net income (loss) ($2,158) ($1,488)
Earnings (loss) per share ($0.08) ($0.10)


Sales for the three and 12-month periods were significantly below expectation and year-over-year were flat compared with 2005. Significant projects totaling more than $4.0 million were delayed due to changes in customer timelines. The anticipated timeframe for these projects has shifted from the third and fourth quarters of 2006 to second and third quarters of 2007. Profit margins continue to improve due to higher margins in satellite network revenues and the proportion of Broadband University products sales increase.

Operating loss and net loss for the three and twelve month periods in 2006 increased over the same periods in 2005 due to increases of general and administration costs associated with public operations of Broadband Learning Corporation, online content development, investments in long term projects, and the addition of sales personnel and a call centre. There were significant investments of time and effort in the pursuit of new sales initiatives that are expected to start being reflected in BLC's operating results in the next six to twelve months.

On April 23, 2007, Broadband Learning's board of directors again met to review the Broadband Learning's performance against expectations in 2006. "A number of changes have now been implemented, including the appointment of a new CEO in late January 2007, to refocus the company on profitable revenue generation and to trim costs. While we are troubled that revenues took longer to take off than had been expected in 2006, we continue to believe in the outstanding growth potential that exists for Broadband Learning. With our new management team in place we remain optimistic that revenue projects will come in as planned in the upcoming year said John Yarnell, Chairman of Broadband Learning.

Yarnell went on to say that the Board expects these changes to result in significant improvements in performance during 2007. "We are now pursuing a more precise vision of our strategy and devoting all resources to delivering on the company's potential in the near term." Bob Dameron, CEO, added, "Previously we had been investing too heavily in developing content and long term customer prospects and, unfortunately, did not devote enough attention to closing and increasing our short term sales pipeline. We are now pursuing a more balanced approach. The long term prospects are still excellent and I am confident our new emphasis on closing orders will bring positive results in the very near future."

About Broadband Learning Corporation

Broadband Learning Corporation produces, delivers, supports and manages distance-learning content needed by professionals, corporations and, ultimately, consumers. The distance learning market is experiencing rapid expansion; particularly in the area of continuing education for licensed professionals where Broadband Learning has a particular focus. Using proprietary technology and nationwide distribution capabilities, Broadband Learning provides the professional development market with a patented Internet-based learning system with on demand flexibility, rich multimedia educational resources, and administrative management capabilities. This enables training companies, instructors and content providers to protect their intellectual properties and realize a significant expansion of their reach. Broadband Learning serves North America and many points around the world from its offices in Salt Lake City, Utah. Many of Broadband Learning's products are delivered under the "Broadband University" trade name.

This press release may contain forward-looking statements relating to, among other things, Broadband Learning's expectations concerning future product demand and growth opportunities and customer acceptance of its products. These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements. Broadband Learning disclaims any obligation to publicly update or revise any such statements.

This news release will not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The securities offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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