PCS Announces 10Q Report FQ Ending 9.30.13
PCS Announces 10Q Report for Quarter Ending 9.30.2013
PCS Edventures!.com, Inc. (PCSV), an Idaho based company which designs and delivers educational products and services to the K-16 market that develop 21st century skills, reported financial results for the three-month period ended Sept. 30, 2013.
Although domestic sales numbers are down this fiscal year to date, we have continued to reduce operating costs and have established a platform for consistent growth going forward.
Results of Operations
For the quarter ended September 30, 2013, the Company reported a net loss of ($240,819) as compared to a net income of $99,986 for the quarter ended September 30, 2012. The Basic Loss per Share for the quarter ended September 30, 2013, is ($0.0), which is equivalent to the $0.0 loss per share for the three-month period ended September 30, 2012.
for the quarter ended September 30, 2013 was $446,438, as compared to revenue during the quarter ended September 30, 2012 of $1,308,510. This was due to the large Kansas State University order in Q2 FY2013 of $741,750.
Operating expenses for the three-month period ended September 30, 2013, decreased by ($62,076) (13%) to $418,678, as compared to $480,754 for the three-month period ended September 30, 2012. The table below identifies the quarter over quarter changes:
Marketing expense decreased due to a reduction in web and e-commerce expenditure.
BOD compensation decreased due to a reduction in board members.
Employee expenses decreased due to lower staff levels resulting in lower salary and benefits.
Professional fees reduced due to a reduction in accounting and legal fees.
Total other income (expense) for Q2 FY2014 and FY2013 was ($36,712) and ($157,462) respectively. The change was primarily due to the change in fair value of derivatives.
Revenues for the six-month period ended September 30, 2013 decreased $997,761 to $800,224 as compared to revenue during the six-month period ended September 30, 2012 as of $1,797,984. This was primarily due to the large anomalous PCS robotics order received from Kansas State University in July of 2012 that resulted in a much higher than normal quarter. Beginning in FY2012, PCS implemented a number of mechanisms that are now in play and building to provide more consistent, dependable and scalable revenues. For example, revenues tracked for the newly implemented e-commerce initiative generated $49,481 in the 6 month period compared to -0- for the same period the prior year. STEMfinity, a new channel partner, generated $129,517 in the 6 month period compared to $10,166 the previous year. The Edventures Lab pilot program, now under development for replication and scaling, generated $18,196 in the 6 month period compared to $8,522 the previous year. And orders received from International efforts in Q2, though not invoiced, were substantial and anticipated to continue in growth this fiscal year. Further, management is confident that its new sales and marketing energy will begin to yield positive results as an expanded sales force is deployed in Q3 and Q4.
PCS has continued to pursue international opportunities to take advantage of the global market needs for PCS type products and services. PCS reported positive growth in the license and royalty agreement with Creya Learning of India (CL). CL uses PCS content and support services to implement experiential learning curriculum into Indian schools. PCS will receive ongoing royalties on tuition charged to students attending PCS based programs. In FY2013 CL established programs in twelve schools that will serve as anchor and reference sites as they expand their programs in FY2014. In the Middle East, PCS continues to work with the Ministry of Education in the Kingdom of Saudi Arabia on STEM related projects. The King Abdullah Project for the Development of Public Education is a USD$2.3B intended to implement major changes throughout the Kingdom, with a heavy emphasis on STEM and science literacy. On Aug. 19, 2013, PCS was awarded a contract regarding a STEM outreach program in the Kingdom of Saudi Arabia for consulting, services, products, and training related to K12 Science, Technology, Engineering and Math.
The company reported the success and continued proof of concept of the PCS Edventures Lab, a prototype for a “hands-on” robotics creative space where students engage in innovation, discovery and creativity using STEM curriculum. The Edventures Lab will serve as a foundation from which PCS will generate a subscription-based, virtual community of students emphasizing experiential, blended learning; and an established network of learning centers will serve as highly effective “showrooms” for sales of PCS products and services into neighboring districts. Close partnerships with neighboring schools will provide an opportunity to test and improve PCS products on a regular basis.
The Company’s ability to successfully accomplish it’s goals in the core initiatives of the domestic markets, Creya Learning in India, the Middle East and the Edventures Labs are dependent on the success of our capital raise plans underway, continued monitoring and reduction of overhead costs and attaining profitability in operations.
A full 10Q report can be found at: http://www.sec.gov/Archives/edgar/data/1122020/000158095713000019/pcsv93013_10q.htm
PCS Programs emphasize hands-on experiences in Science, Technology, Engineering and Math (STEM and have been deployed in over 7,000 sites in all 50 United States and 17 foreign countries.
Additional information on our STEM products is available at http://www.edventures.com.
PCS Edventures is headquartered in Boise, Idaho, and it’s common stock is
listed on the OTC Markets (OTCQB) under the symbol “PCSV.”
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act
of 1934, actual results could differ materially from such statements.
Financial Contact: Shannon Hull 1.800.429.3110, Shannon@edventures.com
Investor Contact: Jolene Anderson 1.800.429.3110, Jolene@edventures.com
Investor Relations Web Site: pcsv.global