TORONTO, ONTARIO -- (Marketwire) -- 05/30/12 -- Lingo Media Corporation (TSX VENTURE: LM)(OTCBB: LMDCF) ("Lingo Media" or the "Company"), a leader in online and print-based English language learning solutions, announces its financial results for the first quarter ended March 31, 2012. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.
Operational Highlights
-- Print-Based English Language Learning:
-- continued ongoing product revisions of the next levels of PEP
Primary English program
-- advanced international distribution of the new Quartet blended-
learning program
-- Online English Language Learning:
-- continued R&D initiatives including product development of our new
English Proficiency Assessment Platform
-- completed and launched newly designed Q Kids Online English program
and secured first sale in Turkey for 5,000 licenses
-- signed sales contracts with Intel Corp. to market and sell the Q
English CD's through their direct-to-consumer channel in Columbia
-- secured a pilot program with Madrid Local Police in Spain to provide
Q Scholar and Worksheets with specialized content based on the real
life needs of the police
-- signed a sales contract with La Presna in Panama to provide 10,000 Q
English Online licenses to be used to expand their readership and ad
revenues
-- started to develop a new product feature set for Speak2Me and
continued pursuing strategic partnerships
Corporate Highlights
-- continued to seek ESL assets for acquisition and M&A opportunities
Financial Highlights
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First Quarter Ended March 31, 2012 2011
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Revenue $ 257,927 $ 300,384
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Operating expenses 679,018 836,928
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Amortization, share-based payments, and
depreciation 131,086 995,435
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Interest, foreign exchange, and other
comprehensive income 76,194 11,683
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Total expenses 898,548 1,844,046
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Total comprehensive loss (628,621) (1,543,662)
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-- Revenue for the first quarter totalled $257,927 compared to $300,384 for
the same period in 2011. The Company does not record revenues in first
and third quarters from its print-based royalties generated from PEP and
records its revenue in second and fourth quarters. The reduction in
revenues in the first quarter of the current year is due to fewer signed
online training contracts as compared to the previous year.
-- Operating expenses for the quarter totalled $679,018, as compared to
$836,928 in 2011, due to cost rationalization.
-- Total comprehensive loss totalled $628,621 or $0.03 per share based on
20.5 million shares outstanding compared to a total comprehensive loss
of $1,543,662 or $0.09 per share based on 17.6 million shares
outstanding. This loss was reduced due to rationalization of selling,
general and administrative expenses, a reduction in share-based payment
and in amortization of intangibles.
The financial statements for the three months ended March 31, 2012 and accompanying 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 marketed under the Q Group brand (www.elltechnologies.com). Parlo is a fee-based online ELL training and assessment service (www.parlo.com). Speak2Me is a free-to-consumer advertising-based online ELL service in China (www.speak2me.cn). 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.
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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Lingo Media Corporation
Michael Kraft
President & CEO
(416) 927-7000 Ext. 23 or Toll Free: (866) 927-7011
(416) 927-1222 (FAX)
mkraft@lingomedia.com
www.lingomedia.com
Facebook: www.facebook.com/LingoMedia
Twitter: www.twitter.com/LingoMediaCorp
