TORONTO, ONTARIO–(Aug. 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 second quarter ended June 30, 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 earned revenues of $715,618 and total comprehensive income of $107,080. The operating expenses reduced from $645,172 to $365,160 for the comparable period, an overall reduction of 43%. Lingo Media also increased the income per share to $0.005 as compared to a loss of $(0.004) for the period ended June 30, 2012.
- Print-Based English Language Learning:
- secured approval for balance of product revisions for PEP Primary English levels 7 and 8 of eight level program from China’s State Ministry of Education
- secured approval for balance of product revisions for Starting Line levels 9 thru 12 of twelve level program from China’s State Ministry of Education
- advanced 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
- Online English Language Learning:
- accelerated the redesign of 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
- advanced re-development of Speak2Me with Advancina LLC, our strategic partner, to enhance and update Speak2Me.cn’s product offering
- continued testing of new product features and technology applications by gauging user input, feedback and acceptance
Financial Highlights for the Second Quarter Ended June 30, 2013
|Second Quarter Ended June 30||2013||2012|
|Amortization, share-based payments, depreciation and impairment||124,453||109,589|
|Finance charges, taxes, foreign||5,765||(3,095||)|
|Income tax expense||96,958||84,418|
|Exchange differences on translating||16,202||(14,245||)|
|Total Comprehensive Income (loss)||107,080||(84,676||)|
- Revenue for the second quarter totalled $715,618 compared to $737,163 for the same period in 2012, a decrease of 3%.
|Second Quarter Ended June 30||2013||2012||Change|
|Print-based English Language Learning||$||620,055||$||553,213||12.1||%|
|Online English Language Learning||95,563||183,950||-48.0||%|
- The decrease in online English Language Learning revenue is primarily due to ELL Technologies’ strategic decision in Q3 2012 to initiate complete overhaul and 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 Q3, with pre-sales currently underway and full sales and marketing efforts will resume in Q4.
- Operating expenses for the quarter ended June 30, 2013 totalled $365,160 as compared to $645,172 in 2012, a 43% 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 fourth quarter.
- Total comprehensive income totalled $107,080 or $0.005 per share based on 20.9 million shares outstanding compared to a total comprehensive loss of $(84,676) or $(0.004) loss per share based on 20.5 million shares outstanding.
The financial statements for the period ended June 30, 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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