TORONTO, ONTARIO–(May 29, 2013) – Lingo Media Corporation (TSX VENTURE:LM)(OTCBB:LMDCF) (“Lingo Media” or the “Company“), an ESL industry acquisition company that is ‘Changing the way the world learns English’, announces its financial results for the first quarter ended March 31, 2013. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.
During the quarter, the Company reduced its operating expenses to $351,609 from $679,018 for the comparable period, an overall reduction of 48%. Lingo Media also reduced the loss per share to $0.02 as compared to $0.03 for the period ended March 31, 2012.
- Print-Based English Language Learning:
- secured approval for product revisions from China’s State Ministry of Education for levels 5 and 6 of PEP Primary English 8 level program.
- secured approval for product revisions from China’s State Ministry of Education for levels 6, 7 and 8 of Starting Line 12 level program
- initiated negotiations for renewal of co-publishing agreements for recently approved PEP Primary English and Starting Line programs with People’s Education Press and Peoples Education Electronic & Audiovisual Press, China’s State Ministry of Education’s publishing arm
- advanced sales of our new Scholar blended-learning program
- Online English Language Learning:
- continued to redesign the product user interface, learning management system and the multi-browser delivery system for desktops and tablets for ELL Technologies’ suite of products including – Scholar, Business, Business Traveler, Master, Kids, and Placement Test
- initiated re-development of Speak2Me with Advancina LLC, our strategic partner, to enhance and update Speak2Me.cn’s product offering
- commenced testing of new product features and technology applications to gauge user input, feedback and acceptance
Financial Highlights for the First Quarter Ended March 31, 2013
|First Quarter Ended March 31,||2013||2012|
|Amortization, share-based payments, and depreciation||120,315||131,336|
|Interest, foreign exchange, and income taxes||64,781||76,194|
|Total comprehensive loss||(398,951||)||(628,621||)|
- Revenue for the first quarter totalled $137,754 compared to $257,927 for the same period in 2012, a decrease of 46%. The decrease in revenue is primarily due to ELL Technologies’ strategic decision in Q3 2012 to initiate redevelopment of its product portfolio and to gradually phase out sales of its legacy software. The Company continues the redesign of its product user interface, learning management system, and the multi-browser delivery system for desktops and tablets for the ELL Technologies suite of products including Scholar,Business, Business Traveler, Master, Kids, and Placement Test. The final phase of this redevelopment process is expected to be completed by the end of Q2, with pre-sales currently underway and full sales and marketing efforts will resume in Q3.
- Operating expenses for the quarter ended March 31, 2013 totalled $351,609 as compared to $679,018 in 2012, a 48% decrease. Operating expenses decreased significantly as a result of reduced sales and marketing cost while the ELL Technologies’ products are undergoing a complete redesign. The Company plans to resume its sales and marketing efforts in third quarter.
- Total comprehensive loss totalled $398,951 or $0.02 per share based on 20.9 million shares outstanding compared to a total comprehensive loss of $628,621 or $0.03 loss per share based on 20.5 million shares outstanding.
The financial statements for the period ended March 31, 2013 and Management Discussion & Analysis are available at www.sedar.com.
About Lingo Media (TSX VENTURE:LM)(OTCBB:LMDCF)
Lingo Media Corporation (www.lingomedia.com) is an ESL industry acquisition company that is ‘Changing the way the world learns English’, focused on English language learning (“ELL”) on an international scale through its four distinct business units: ELL Technologies; Parlo; Speak2Me; and Lingo Learning. ELL Technologies is a globally-established ELL multi-media and online training company. Parlo is a fee-based online ELL training and assessment service. Speak2Me is a free-to-consumer advertising-based online ELL service in China. Lingo Learning is a print-based publisher of ELL programs in China. Lingo Media has formed successful relationships with key government and industry organizations, establishing a strong presence in China’s education market of more than 300 million students. The Company continues to expand its ELL offerings and is extending its reach globally.
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Portions of this press release may include “forward-looking statements” within the meaning of securities laws. Forward-looking statements contained in this press release are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties. Actual results may vary materially from management’s expectations and projections and thus readers should not place undue reliance on forward-looking statements. Certain factors that can affect the Company’s ability to achieve projected results are described in the Company’s filings with the Canadian and United States securities regulators available on www.sedar.com or www.sec.gov/edgar.shtml.
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