Lingo Media (CVE:LM) reported improved assets with its third quarter earnings on Monday and also said it was confident it would fulfill its sales pipeline.
The edTech company reported total assets of C$6.9mln in the three months to Sept 30 versus C$5.2mln at the end of 2015.
But revenue declined to C$152,657 in the latest period versus C$1.2mln in the same period a year ago.
“The Company had a decline in revenue in its Online English Language Learning division during the third quarter of 2016. Lingo Media has established a qualified sales team headed by Laurent Glorieux who recently joined the company and has developed a sales pipeline which did not convert into sales contracts during the quarter. The nature of our business is such that revenues are recognized upon signing of a contract, delivery of the software and customer acceptance and sign-off. The lower level of revenue in Q3-16 is a result of delays in signing sales contracts and delivery of the software,” it said in a statement.
“The Company is confident that it can close a significant portion of its sales pipeline but cannot forecast the exact timing of such closings and delivery. The high level and aging of the accounts receivable is attributed to one major customer upgrading and implementing new computer systems and another customer awaiting project completion and sign off which has resulted in delayed collections,” the company added.
Story by ProactiveInvestors