OAKLAND, Calif., April 14, 2020 /PRNewswire/ -- Scientific Learning Corp. (OTC PINK:SCIL), a leading SaaS service provider that delivers neuroscience-based educational technologies, today announced it has released its audited financial results for the period ending Dec. 31, 2019. Details of the annual results can be found at https://www.otcmarkets.com/stock/SCIL/disclosure.
The company continued to make progress on its product development roadmap and achieved booked sales growth of seven percent for the fourth quarter. The company has now converted nearly 70% of its programs to HTML5 (from Flash), based on customer usage. At the same time, the company made progress in developing its new secondary literacy programs (Elements), demonstrated its working beta to customers in early January 2020, and is on track to release Elements to customers by back to school 2020. The fourth quarter growth was driven by strong international customer renewals.
The financial results for the year were below expectations. Total booked sales declined nine percent compared to 2018. Our core segment, K-12, declined fifteen percent as compared to last year. This decline was driven by several factors. Several large customers delayed their purchases from the fourth quarter of 2019 to the first quarter of 2020. Also, the number of large transactions (> $100,000) declined year over year, reflecting a movement in K-12 decision making from the district level to the school or building level. The company is addressing these challenges in 2020 with several initiatives – including implementing a new K-12 sales teaming model to extend customer reach and restructuring its service teams to a Customer Success model to improve customer touchpoints at all customers, which we believe will improve renewals.
"We are pleased with the breadth and depth of operational gains that our company has made," said Jeff Thomas, CEO of Scientific Learning. "These gains include improving our learning solutions, driving cost efficiencies, and enhancing the overall customer experience. We believe that these actions will benefit our customers and improve shareholder value over time. At the same time, we recognize that our shareholder base has been very patient while we work our way into a cash-flowing business, and we appreciate that patience."
About Scientific Learning Corp.
Based in Oakland, Calif., Scientific Learning is a leading SaaS education company that delivers neuroscience-based educational technologies. Scientific Learning's programs have been used by more than 3 million learners in more than 2,300 K-12 schools in the United States and Canada, almost 300 private practice clinicians, thousands of students via a direct-to-consumer channel, and in over 55 countries via value-added resellers. The company's Fast ForWord® programs cross-train foundational language and cognitive skills necessary for rapid English language development. Reading Assistant™ uses speech verification technology to provide real-time corrective feedback to students as they read and speak, in a manner similar to that of an individualized language and reading coach.
Safe Harbor Statement: The information posted in this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. The forward-looking statements in this release include, among others, statements regarding potential future sales results, product development plans and plans to implement a K-12 sales teaming model and restructure the Company's service teams. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Factors which could cause results or events to differ from current expectations include, among other things: general economic and business conditions; availability of government funding for the purchase of the Company's educational products; effects of potential geopolitical unrest and regional conflicts; competition; and various other factors beyond the Company's control. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements.
SOURCE Scientific Learning Corp.