SOURCE: Chalk Media Corp.

April 25, 2007 20:17 ET

Chalk Media Corp. Announces 2006 Financial Results

VANCOUVER, BC -- (MARKET WIRE) -- April 25, 2007 -- Chalk Media Corp. (TSX-V: CKM) today announces its audited consolidated financial results for the year ended December 31, 2006.

2006 Corporate Significant Events:

* Incurred loss of $7,159,825 or $0.12 per share for the year ended December 31, 2006 compared to loss of $2,979,916 or $0.09 per share for the year ended December 31, 2005.

* Earned revenues of $3,544,096 for the year ended December 31, 2006 compared to $4,868,658 for the same period in 2005, a reduction of 27%.

* Earned record revenues from interactive media of $2,504,674 for the year ended December 31, 2006, up 5% from the same period in 2005.

* Continued record of revenue growth in interactive media (2006: $2.5 million; 2005: $2.4 million; 2004: $1.8 million; 2003: $1.3 million).

* New deals signed include 1-800-GOT-JUNK?, Avokia, Bell Sympatico, Best Buy Canada, BMW Canada, Canadian Welding Bureau, Florida A&M University, Fujiilm Canada, Future Shop, Henry's, Howard University, Microsoft, MTS Allstream, Research in Motion, Samsung Canada, Shoppers Drug Mart, TELUS, TenDigits Software, The Health Initiative, Third Core and Transit Television Network.

* Won a Brandon Hall Excellence in Learning Award in the Custom Content category, a top-level recognition in the eLearning industry.

* Appointed Ambassador Delano E. Lewis, former U.S. Ambassador to the Republic of South Africa and currently a director of Colgate Palmolive Company and Eastman Kodak, to the Company's board of directors.

* Signed partnership with TELUS to market its CallCentreAnywhere™ ("CCA") service, an internet-based suite of contact centre applications, through a dynamic online 'edu-marketing' portal that will feature engaging content, rich media and a free trial wizard.

* Completed private placements for net proceeds of $5,630,275.

* Released chalkboard™ LCMS Version 3.9 and 4.0 with improved scalability, multi-site management support for customized deployments, language independence and full management capabilities for instructor-led training.

Chalk earned revenues of $3,544,096 for the year ended December 31, 2006, compared to $4,868,658 for the same period in 2005. Chalk earned revenues of $2,504,674 for interactive media and $968,383 for television and airline segment production for the year ended December 31, 2006 and $2,379,594 and $2,406,147, respectively, for the same period in 2005. The drop in revenues for television and airline segment production in 2006 was due to the cessation of Chalk's two television productions.

The net loss for the year ended December 31, 2006 was $7,159,825, or $0.12 per share, compared to a net loss of $2,979,916, or $0.09 per share, for the same period in 2005. Higher research and development costs for continued development of chalkboard™ LCMS, higher selling and marketing expenses and costs, and higher general and administrative expenses all contributed to the higher net loss.

"2006 was clearly a disappointing year," said Stewart Walchli, President & CEO. "Sales of our chalkboard™ Learning Content Management System software and eLearning customized courses did not ramp up as quickly as we ramped up our operations. The US government market is a tougher market to penetrate and the sales cycle is longer than we had anticipated. Looking forward, we have just entered into an agreement with Sympatico / MSN to provide video programs that educate people about cutting-edge technologies and consumer electronics products for their portal, the top site in Canada. We believe that sponsorship revenues from the video program will exceed revenues from our online training business. We are also in the process of modifying our chalkboard™ Learning Content Management System software to allow for the delivery of training over handheld mobile devices. This 'mLearning' initiative, which has required significant research and development, has been enthusiastically received by numerous major corporations and government agencies. When the software modifications are complete, we anticipate this will become a significant revenue opportunity for Chalk."

Selected Financial Data (in $'000's, except per share numbers):

                                             Year ended  Dec. 31,
                                                2006      2005
Revenue                                         $3,544    $4,869
Gross margin                                    $  697    $1,119
Operating income / (loss)                      ($6,874)  ($2,899)
Net income / (loss)                            ($7,160)  ($2,980)
Earnings / (loss) per share                    ($ 0.12)  ($ 0.09)

This press release should be read in conjunction with Chalk's audited consolidated financial statements for the year ended December 31, 2006, as well as its management discussion and analysis available at


While the information contained herein is believed to be accurate and reliable, Chalk and its subsidiaries and/or affiliates, and their respective directors, officers, employees and shareholders make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information, and Chalk expressly disclaims any and all liability that may be based on such information, or errors or omissions thereof.

The forward-looking statements contained herein (such as statements relating to the future anticipated direction of the media and high technology industries, plans for future expansion, revenue targets, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts) involve important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may vary materially from those expressed in any forward-looking statements made by or on behalf of Chalk.

There can be no assurance that Chalk will achieve the results projected or implied by the forward-looking statements included herein. These risks and uncertainties include, but are not limited to, those relating to Chalk's ability to raise sufficient financing to fund its business plan, development and expansion activities, dependence on existing management, financial activities, domestic and global economic conditions, changes in federal or provincial income tax laws, and market competition factors.

About Chalk Media Corp.

Chalk (TSX-V: CKM) is a leading provider of interactive learning solutions and tools that help organizations communicate more effectively with their employees, business partners and consumers. The company's core focus is customized, results-driven eLearning solutions.

By combining in-house expertise in instructional design, content strategy, development, quality assurance, Flash animation and video production, Chalk produces customized rich media content that focuses on the user experience. Chalk uses its proprietary software platform, chalkboard™ LCMS, to measure the effectiveness of their learning solutions and track ROI for their clients.

With a US office in metropolitan Washington, DC, and Canadian offices in Toronto, Ontario, Vancouver, British Columbia and Fredericton, New Brunswick, Chalk works with global blue-chip organizations such as AstraZeneca, Best Buy, Business Objects, Fujifilm, HSBC, Intrawest, Microsoft, RBC Financial, RIM, Samsung, Scotiabank, Sony, TELUS, Terasen Gas and Verizon. For more information, please visit

The TSX Venture Exchange has not reviewed the contents of this release and is not responsible for its accuracy.

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Contact Information

  • For more information, please contact:
    Chalk Media Corp.
    Kris Sutherland
    Executive Vice President
    Tel: 604.453.4424
    Email Contact