Booked Sales Increased 1 Percent To $7.0 Million; K-12 Channel Grows For Fourth Consecutive Quarter
11/08/18
Media Contact:
Hallie Smith
Sr. Director of Marketing
Scientific Learning Corporation
(619) 888-0887
hsmith@scilearn.com
Oakland, Calif., Nov. 8, 2018 -- 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 third quarter of fiscal year 2018. Details of the quarterly results can be found at https://www.otcmarkets.com/stock/SCIL/disclosure.
The company’s growth momentum continues after a solid third quarter, enabling it to achieve sales growth of one percent for the third quarter and a fourth consecutive quarter of sales growth in the K-12 channel. The success is attributed to a growing understanding of the company’s unique solutions, decision makers placing greater importance on evidence-based solutions as required by the federal Every Student Succeeds Act (ESSA), and the announcement of new Fast ForWord products, enhanced with SmartLearning Technology.
Released this past quarter, Fast ForWord Foundations I and Foundations II, the new versions of the flagship Fast ForWord Language and Fast ForWord Language to Reading programs, include an intelligent back-end engine that intuits when a student is struggling and provides just-in-time interventions personalized to each learner’s strengths and weaknesses. With this SmartLearning Technology, educators can deliver smarter, more focused interventions and faster results for the nation’s most vulnerable students.
“Initial customer feedback has been extremely positive, and we are experiencing other peripheral benefits including faster implementation with better fidelity to recommended protocols and improved retention rates,” said Jeff Thomas, CEO of Scientific Learning. “We expect the vastly improved new Fast ForWord with SmartLearning Technology to be a strong catalyst for fulfilling our long-term strategic plan; attracting new customers and sustaining existing users for longer periods.”
Thomas also stated that the company is seeing increased interest in its solutions because of the strong, documented evidence of efficacy. ESSA emphasizes the use of evidence-based interventions to help schools improve outcomes for English language learners, students who are economically disadvantaged, and those with disabilities. According to the WhatWorks Clearinghouse, which reviews existing research on programs, products, practices, and policies in education, Fast ForWord is the top-ranked English language development intervention.
In other news, Scientific Learning announced it is decelerating its actions to acquire Shanghai-based BrainMaps. According to a Wall Street Journal story posted on Oct. 19, 2018, China posted its weakest growth in nearly a decade, with the rate of growth dropping to 6.5 percent, the lowest since the first quarter of 2009. These recent developments have impacted Chinese consumers and potential franchisee investors. Based on this economic slowdown along with evolving government regulations in the education sector, the Company decided the best course of action is to pause and evaluate the specific impact on BrainMaps and the overall growth of the English Language Learning market in China. The company is committed to supporting BrainMaps and working to realize more value from the English Language Learning market in China.
“We are pleased that we have been able to post four consecutive quarters of growth. We are working to continue that momentum by putting even greater focus on the customer, highlighting the improvements in our new product releases, and improving our sales processes,” said Thomas. “That said, we are disappointed that we have not been able to complete the acquisition of BrainMaps in China, but we still see this as a viable and valuable option for the future,” said Thomas.
About Scientific Learning Corp.
Based in Oakland, Calif., Scientific Learning is a leading SaaS service provider that delivers neuroscience-based educational technologies. Scientific Learning’s programs have been used by nearly 3.0 million learners in more than 2,400 K-12 schools in the United States, by over 300 private practice clinicians, by 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, while 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 statements regarding plans to shift the Company’s business focus towards China. 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: the inability to complete a financing transaction sufficient to complete the acquisition of BrainMaps and support BrainMaps’ growth in China at terms that are reasonable to the Company or at all; the inability to secure approval of the acquisition from SCIL’s board of directors or its shareholders; general economic and business conditions; 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.
