Dallas, Texas (November 30, 2011) – StockGuru Shines its Spotlight on Lingo Media Corporation (TSX-V: LM)(OTCBB: LMDCF) a leader in online and print-based English language learning solutions, announced yesterday its financial results for the third quarter ended September 30, 2011. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted. The Company closed on November 29, 2011, at $0.35, trading in a fifty-two week range of $0.99 – 0.35.
- China – signed custom software business partnership agreement with Lenovo to provide a custom version of Lingo Media’s software to be installed on millions of Lenovo computers sold in China. This trial offer will be launched shortly and followed by a direct to consumer offering and the future launch of additional custom versions
- Asia Pacific – secured a strategic distribution agreement with iGroup (Asia Pacific) Limited expanding Lingo Media’s market and distribution reach for its ELL Technologies and Parlo software solutions into 14 new markets. The iGroup is exclusively representing Lingo Media for an initial 3 year term in the marketing and sales of its products and services to students, academics, educators, librarians, research professionals, scientists and institutional customers in healthcare, government, research, and corporate markets in Australia, China, Hong Kong, Indonesia, Japan, Korea, Macau, Malaysia, Myanmar, New Zealand, Philippines, Singapore, Taiwan, Thailand, and Vietnam
- Asia Pacific – secured a second strategic agreement with the iGroup through a book licence agreement expanding distribution of Lingo Media’s textbooks beyond China into new markets in Asia Pacific
- Peru – signed a distribution agreements with Ariane Ingenieria S.A. to sell and market ELL Technologies software solutions in the institutional, corporate and retail markets in Peru
- Argentina – signed a distribution agreement with Fundación Proydesa to sell and market ELL Technologies software solutions to government, corporate, institutional and retail markets in Argentina
Product Development Milestones:
- Commenced product development on a new and revised Q Kids software product including a brand new 3D design
- Secured a government grant to develop an online placement and assessment platform with LNTS, a leader in speech recognition
- Continued revision work for new editions of our PEP Primary English and Starting Line textbook programs with People’s Education Press based on new State Ministry of Education curriculum guidelines
- Extended the term of the remaining $890,000 of the $1 Million loan financing by an additional year
- In the quarter ended September 30, 2011, Lingo Media earned revenues of $349,544 compared to the quarter ended September 30, 2010 of $413,330.
|Loss from Operations||$||(987,983||)||$||(951,927||)|
|Total Comprehensive Loss||$||(999,551||)||$||(1,047,165||)|
- Selling, general and administrative costs for the quarter ended September 30, 2011 were $642,788 compared to $698,348 for the same period in 2010. The company continues to reduce its selling, general and administrative costs as a result of synergies realized through the ongoing integration of its business units and further rationalization of head count.
- For the third quarter, Lingo Media recorded a total comprehensive loss $999,551 or $0.05 per share compared $1,047,165 or $0.08 during the same period last year. The decrease is primarily attributed to a reduction in selling, general and administrative costs.
- The total comprehensive loss of $999,551 was significantly impacted by non-cash items including depreciation, amortization and share based payment totaling $660,417.
- Cash used in operating activities for the quarter ended September 30, 2011 totaled $ 83,277 compared to $679,019 for the comparative period.
The financial statements for the nine months ended September 30, 2011 and accompanying Management Discussion & Analysis are available at www.sedar.com.