Broadband Learning Corporation
TSX VENTURE : BLC

Broadband Learning Corporation

May 31, 2009 19:13 ET

Broadband Learning Corporation Reports 2009 First Quarter Results

SALT LAKE CITY, UTAH--(Marketwire - May 31, 2009) - Broadband Learning Corporation ("Broadband Learning")(TSX VENTURE:BLC), a participant in the rapidly expanding distance learning market, today reported its unaudited financial results for the three months ended March 31, 2009.



3 months ending March 31,
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($000s, except per share amounts) 2009 2008
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Sales $5 $-

Gross Profit 5 -

Loss from continuing operations (328) (512)

Net loss ($620) ($1,774)

Loss per share (basic & diluted) ($0.02) ($0.06)

Total assets $795 $12,193

Total long-term financial liabilities $6,464 $6,677


In light of the ongoing dispute with its business partner on the i-vu project, it is clear that the i-vu project will not become economic. Accordingly, the Company discontinued the operations related to the i-vu project, with all inventory and deferred charges related to the discontinued operations being written off as impaired during 2008. The results of operations and financial position of the i-vu project have been segregated and presented separately as discontinued operations in the Company's consolidated financial statements. As a result, no revenues, cost of goods sold, gross profit or selling and marketing expenses are presented in the Company's income statement for 2008. Very modest sales occurred in the first quarter of 2009 as the Company was trying to resolve the i-vu situation and restart its distance learning business.

Loss from discontinued operations was $293 thousand in Q1 of 2009 versus $1,262 thousand in Q1 of 2008. While the assets related to the i-vu project were written off in 2008, criteria had not been met as at March 31, 2008 to extinguish a liability of $10,851 thousand related to this project. Management considers it unlikely that the Company will have to fulfil this other liability; and the other liability may be taken into income in a future period. Settlement discussions are at a very advanced stage on the i-vu legal actions and, in light of the filing for liquidation of i-vu's UK parent, the parties have agreed in principle to discontinue the actions and provide mutual releases with no payments to each other. A formal settlement agreement is at the draft stage.

About Broadband Learning Corporation

Broadband Learning Corporation produces, delivers, supports and manages distance learning content for professionals, corporations and consumers. The Company is addressing the professional development market by providing an Internet or digital media-based learning system with on-demand access, multimedia educational resources, and administrative management capabilities. The Company provides wide area network and satellite services across North America and other parts of the world. The Company 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.

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

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.

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