OAKLAND, Calif., May 20, 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 unaudited financial results for the period ending Mar. 31, 2020. Details of the annual results can be found at https://www.otcmarkets.com/stock/SCIL/disclosure.
The company started 2020 with a strong K-12 sales quarter achieving 20% sales increase over the first quarter of 2019. While the first quarter is historically its smallest in terms of dollar sales volume, the company achieved 75% increase in renewal sales, driven by two large customers that have typically renewed in the fourth quarter.
By the end of the quarter, the company, like the rest of the world, was focused on COVID-19 and how to navigate its way through the pandemic. The company undertook several immediate actions to address the K-12 learner including providing free access to its Reading Assistant Plus program to help students continue to learn in a non-traditional environment. In addition, the company engaged with parents and paraprofessionals through new webinars to help students navigate our product offerings.
On April 20th, the company received a loan from the Small Business Administration through their Paycheck Protection Program ("PPP") in the amount of $1.9 million. This capital has enabled the company to operate during this critical period of business restrictions and lockdowns, while it pivots to focus on what schools, teachers, and students need right now. The company expects a significant majority of the loan will be forgiven pursuant to the PPP's loan forgiveness provisions.
"While COVID-19 poses challenges for many companies, including our own," said Jeff Thomas, CEO of Scientific Learning, "we are pleased with the educator interest we have seen from our offering of free access to Reading Assistant Plus. Providing the product in this way has introduced us to new potential customers and demonstrates the company's commitment to helping every student achieve their potential – especially during difficult times like we've seen in the pandemic."
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 the potential forgiveness of the PPP loan and the potential for sales from the company's offering of free access to Reading Assistant Plus. 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; changes in the legal and regulatory environment; 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.