Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify Blog

News Feed Item

BlueScout Technologies Reports Third Quarter 2012 Financial Results

- Operating expenses down 77% for the quarter and 66% for the nine-month period -

CHANTILLY, VA, Nov. 29, 2012 /CNW/ - BlueScout Technologies TSXV: SCT, providers of the BlueScout OCS-210 for optimized wind energy generation, reported its financial results for the three- and nine-month periods ended September 30, 2012.  All figures are in U.S. dollars, unless otherwise stated.

Select Highlights

  • A new signal processing sub-system design was completed. As opposed to the prior design, which was an evolution of a design targeted at aerospace applications, the all-new design started with a clean slate approach specifically addressing the requirements of the wind turbine industry. The foundation of the design is a fundamentally different signal processing algorithm, sharing no commonality of software, firmware or hardware with the prior design. The work combines a clean set of signal processing protocols, modern chipsets, and active system noise reduction to improve system sensitivity by five hundred percent and eliminate errors due to turbine blade blockage.

  • The operational fleet has 34 units installed with another seven on backlog for installation. BlueScout products now have over 300,000 of operational field hours.

  • Reduced operating expenses by 77% or $8.6M for the quarter compared to last year and reduced net loss for the quarter by $8.3M or $0.08 per share versus Q3 2011.

  • Successfully rebranded under the name BlueScout Technologies, which included a new image, mission, vision, values, domain name, ticker symbol and fresh logo.

  • Completed a special warrant offering for gross proceeds of CDN$3.1 million and a convertible debenture offering for CDN$1.2 million, for total gross proceeds of CDN$4.3 million.

  • Continued its market expansion by entering into a trial program with EDP Renewables North America (EDPR NA) to demonstrate the performance improvement of two EDPR NA turbines under the operational control of the OCS-210 wind turbine control system.

Legal Updates

  • As part of ongoing legal disputes, Optical Air Data Systems LLC (OADS) sent more than twenty subpoenas to key BlueScout customers and suppliers.

  • The indemnification suit brought against BlueScout by Phil and Alisa Rogers was dismissed without prejudice by the Fairfax Circuit Court in Virginia in October. Following this dismissal the Rogers subsequently filed a substantially similar indemnification lawsuit in the same court.

  • In the IP suit, a few days after a motion by OADS against BlueScout was denied at the magistrate level, subsequently another motion was introduced by OADS asking that the denial be re-evaluated by a district level judge.

Financial Performance

BlueScout recognized revenue of $50K for the quarter ended September 30, 2012, compared to $348K for the three-month period ended September 30, 2011.  The Company has $742K of deferred revenue and customer deposits recorded on its consolidated balance sheet at September 30, 2012 related to product shipments that have performance provisions that are expected to be recognized in future quarters.  On a nine-month basis, BlueScout recognized revenue of $510K for 2012 compared to $738K for the same period in 2011.

Operating expenses for Q3 2012 were $2.6M, down 77% from $11.2M for the corresponding period last year.   Excluding the non-cash items, litigation expense, one-time August 24 financing fees and one-time rebranding fees, operating expenses in Q3 2012 were $2.2M, down 23%, compared to $2.8M for Q3 2011.

For the nine-month period ended September 30, 2012, operating expenses were $7.4M, down 66% from $21.4M for FY2011.  Excluding the non-cash items, litigation expense, one-time August 24 financing fees and one-time rebranding fees, operating expenses were $6.0M, down 49% from $11.8M for the same period last year.   Selected operating expenses are detailed below:

Cost of sales for the three-month period ended September 30, 2012 was $598K compared to $527K for the same period last year.   On a nine-month basis, cost of sales was $1.2M compared to $1.6M for the same period in 2011.  Cost of sales include product inventory costs and all costs associated with the installation on, and integration with, wind turbines.

General and administrative expense for Q3 2012 was $196K, down 70% from $625K for Q3 2011.  The decrease is primarily due to reductions in travel related expenses and repairs and maintenance costs.   On a nine-month basis, general and administrative expense was $659K compared to $2.2M for the same period in 2011.  The 2011 expenses were predominantly related to travel and maintenance related to the Falcon 50 aircraft which the Company has not been affiliated with since October 22, 2011.

Sales and marketing expense for Q3 2012 was $101K compared to $15K for Q3 2011.  Sales and marketing expense includes expenses for trade shows, advertising, promotion and sales and marketing consulting costs.  The increase is primarily due to $64K of rebranding costs and $22K of expenses associated with trade shows during the quarter.

Professional fees totaled $1.6M for the three-month period ended September 30, 2012, up from $331K for the same period last year.  The increase in professional fees for the quarter is due to legal expenses, primarily related to litigation matters, and costs associated with the August 24 financing which totaled $572K.  Legal expense was $873K for the third quarter of 2012 versus $131K for the same period last year.   On a nine-month basis professional fees were $2.9M for 2012 ($1.7M related to litigation) and $1.0M for 2011.

Third quarter 2012 research and development expense was $77K compared to $384K for the same period last year.  On a nine-month basis, research and development expense was $257K compared to $3.7M for the same period in 2011. Research and development during 2012 has been centered on the transition to contract manufacturing and turbine integration.

BlueScout recorded a net loss for Q3 2012 of $2.6M or $0.02 per share, compared to a net loss of $10.9M or $0.10 per share for Q3 2011.  On a nine-month basis, BlueScout generated a net loss of $6.9M or $0.06 per share compared to a net loss of $20.7M or $0.22 per share for the same period of FY2011.

As of September 30, 2012, BlueScout had cash and cash equivalents of $2.1M and working capital of $3.4M, compared to cash and cash equivalents of $6.0 million and working capital of $6.2 million at December 31, 2011.

BlueScout has filed its financial statements for the three and nine month period ended September 30, 2012 and related Management's Discussion and Analysis (MD&A) with securities regulatory authorities.  BlueScout's financial statements, MD&A and related documents are available via SEDAR as well as through the Company's website, www.BlueScout.com.

Conference Call

BlueScout will hold a conference call on November 30, 2012 at 1:00 pm ET to discuss its third quarter 2012 financial results.

To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191.  Please connect approximately 15 minutes prior to the beginning of the call to ensure participation.  A question and answer session for analysts and institutional investors will follow management's presentation.

A live audio webcast of the conference call will be available at www.BlueScout.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above web site for 30 days.

A taped rebroadcast will be available to listeners until 12 a.m. ET on Friday, December 7, 2012. To access the rebroadcast, please dial 416-849-0833 or 1-855-859-2056 and enter passcode 72229223, followed by the number sign.

About BlueScout

BlueScout Technologies (TSXV: SCT) increases energy production and decreases operating costs by applying groundbreaking microgeographical wind flow sensing to turbine control systems that increases the effectiveness and availability of wind turbines. BlueScout combines precise, optically based wind forecasting with advanced predictive control architectures to ready the turbine for the imminent wind inflow changes - optimizing energy production and reducing the harmful effects of wind turbulence on the turbine. With extensive operating data on multiple wind turbine models, BlueScout is the leading, value-added innovator in wind turbine performance and optimization.

The team consists of experienced high-tech, R&D and manufacturing engineers, innovative entrepreneurs, and proven leaders. The BlueScout team has unique expertise and shares a firm commitment, as part of the wind power industry, to continuously improve the reliability of wind power generation through innovation. For more information, visit www.BlueScout.com.

Forward-Looking Information

This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of BlueScout Technologies. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although BlueScout believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. BlueScout Technologies disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither 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.

BlueScout Technologies Ltd. Condensed Consolidated Interim Balance Sheets
(Unaudited)

           
(Expressed in United States dollars) Note   September 30,
2012
$
  December 31,
2011
$
           
Assets          
Current assets:          
  Cash and cash equivalents     2,107,678   6,018,559
  Accounts receivable     207,502   167,705
  Inventory 5   2,810,965   1,830,350
  Prepaid expenses and other assets     168,484   352,002

    5,294,629   8,368,616
Non-current assets:          
  Property and equipment     149,175   418,896
  Intangible assets     -   3,166
  Other assets     28,026   82,050

    177,201   504,112
Total assets     5,471,830   8,872,728
           
Liabilities and Equity          
Current liabilities:          
  Accounts payable and other liabilities     1,453,548   1,391,799
  Obligations under finance leases 7   14,461   62,707
  Warranty provision 8   137,500   93,750
  Due to related party 11   126,197   18,516
  Deferred revenue and customer deposits     202,000   552,800

    1,933,706   2,119,572
           
Non-current liabilities:          
  Obligations under finance leases 7   -   7,620
  Special warrants liability 13   1,939,060   -
  Convertible debenture 14   878,244   -
  Option component of convertible debenture 14   106,489   -
  Deferred revenue     540,400   -
  Provision for indemnification agreement 8   2,000,000   2,000,000
  Warrant liability 12   15,218   249,329
  Due to related party 11   74,028   -

    5,553,439   2,256,949
Total liabilities     7,487,145   4,376,521
           
Commitments and contingencies 9,10        
           
(Deficiency) Equity          
  Capital stock 15   12,252   12,252
  Contributed surplus     56,884,327   56,521,284
  Deficit     (58,911,894)   (52,037,329)
Total (deficiency) equity     (2,015,315)   4,496,207
Total liabilities and (deficiency) equity     5,471,830   8,872,728

 


BlueScout Technologies Ltd. Condensed Consolidated Interim Statements of Loss and
Comprehensive Loss
(Unaudited)

 

 
  Three months ended   Nine months ended

(Expressed in United States dollars)
Note   September 30,
2012
$
  September 30,
2011
$
  September 30,
2012
$
  September 30,
2011
$
                   
Revenue
  50,000   348,000   510,000   738,000
                   
Expenses:
     
 
 
  Cost of sales 5   598,161   526,599   1,238,116   1,583,303
  Salaries and benefits 6   656,042   607,827   1,974,704   1,689,854
  General and administrative 7   195,607   624,967   659,348   2,209,469
  Inventory writedown 5   297,336   1,422,986   297,907   1,430,934
  Amortization of intangible assets
  -   338,417   3,166   1,015,497
  Depreciation of property and equipment
  94,867   153,107   296,229   471,223
  Sales and marketing 2   101,037   14,516   255,845   310,529
  Consulting fees 2   339,914   74,081   765,216   361,471
  Professional fees 2,6   1,553,905   343,079   2,940,552   1,010,578
  Professional engineering fees     -   102,108   229,333   582,839
  Research and development
  76,850   384,243   257,365   3,724,826
  Finance costs 7   22,195   84,349   27,730   260,768
  Interest income
  (365)   (2,711)   (799)   (4,824)
  Other income, net
  -   (19,715)   -   (37,464)
  Impairment of property and equipment
  -   2,486,799   -   2,486,799
  Impairment of intangible assets
  -   4,968,369   -   4,968,369
  Gain on fair value of warrant liability 12   (25,880)   (965,614)   (274,232)   (713,728)
  Gain on fair value special warrants liability 13   (1,152,994)   -   (1,152,994)   -
  Gain on fair value option component of
               
     convertible debenture 14   (72,912)   -   (72,912)   -
  Gain on fair value deferred related party        
     
     balance 11   (106,528)   -   (106,528)   -
  Loss of asset disposal
  35,894   -   35,894  
  Loss on foreign exchange
  10,534   72,434   10,622   79,509
 
  2,623,665   11,215,841   7,384,565   21,429,952
                   
Net loss and total comprehensive loss     (2,573,665)   (10,867,841)   (6,874,565)   (20,691,952)
                   
Net loss and total comprehensive loss attributable to:
 
 
 
   
  Owners of the Company
  (2,573,665)   (10,176,903)   (6,874,565)   (19,771,680)
  Non-controlling interest
  -   (690,938)   -   (920,272)


  (2,573,665)   (10,867,841)   (6,874,565)   (20,691,952)
                   
Net loss per share - basic and diluted
  (0.02)   (0.10)   (0.06)   (0.22)
                   
Weighted average number of common shares    outstanding      122,513,614   106,527,100   122,513,614   89,265,679





       

 

 

 

SOURCE BlueScout Technologies

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant th...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-security...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. ANSeeN are the measurement electronics maker for X-ray and Gamma-ray and Neutron measurement equipment such as spectrometers, pulse shape analyzer, and CdTe-FPD. For more information, visit http://anseen.com/.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...