March Networks Reports Preliminary Fourth Quarter and Fiscal 2009 Revenue, Non-GAAP Operating Earnings and Cash Position



    
    Summary Operating Results:

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    $Cdn millions                                           Fiscal     Fiscal
                                    Q4 2009    Q4 2008       2009       2008
                                  Preliminary   Actual   Preliminary   Actual
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    Revenue                           $21.5      $21.1     $101.2      $94.4
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    Non-GAAP operating loss(*)         (1.6)      (4.1)      (1.2)      (7.4)
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    (*) Non-GAAP measure: earnings (loss) before stock based compensation,
        amortization of acquired intangibles, restructuring costs, interest
        and income taxes. This measure may not be comparable to similar
        measures used by other companies.
    

    OTTAWA, May 14 /CNW Telbec/ - March Networks(TM) (TSX:MN), a leading
provider of innovative video and data applications used for security
surveillance, monitoring, analysis and business optimization, today announced
preliminary revenue, non-GAAP operating earnings and cash position for the
fourth quarter and fiscal year ended April 30, 2009. All figures are in
Canadian dollars and in accordance with Canadian GAAP unless otherwise
specified.
    The Company expects that revenue for the fiscal year ended April 30, 2009
increased by 7% to $101.2 million as compared to revenue of $94.4 million in
the fiscal year ended April 30, 2008. The Company's expected fourth quarter
2009 revenue of $21.5 million reflects a 2% increase from the same quarter
last fiscal year but was lower than anticipated by the Company due to delays
in the sales process attributable to current economic conditions. Despite
lower than anticipated fourth quarter revenues the Company has recently seen
an improvement in business conditions and is optimistic about revenue
prospects for fiscal 2010.
    The Company's expected non-GAAP operating earnings for the fourth quarter
and fiscal year ended April 30, 2009 reflects significant improvement from the
same periods in fiscal 2008 growing by approximately $2.5 million and $6.2
million, respectively. The Company did not achieve its previously announced
guidance of at least $0.5 million in non-GAAP operating earnings for fiscal
2009 largely due to higher than expected costs of revenue and delays in the
sales process attributable to the current economic turmoil.
    The Company improved its cash position by $4.2 million in the fourth
quarter of fiscal 2009 to nearly $51 million.
    The Company will discuss final fourth quarter and fiscal 2009 financial
results on a conference call and webcast on Thursday, June 11, 2009.

    About March Networks

    March Networks(TM) (TSX:MN) is a leading provider of intelligent IP video
and business analysis applications that enable organizations to reduce losses,
mitigate risks and improve security and operational efficiency. The Company's
advanced software suite includes enterprise-class video management, powerful
analytics and comprehensive managed and professional services. Our software
and systems are used by leading financial institutions, retailers,
transportation authorities and other organizations in more than 50 countries.
For more information, please visit www.marchnetworks.com.

    
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    Certain statements included in this release constitute forward-looking
statements, including those identified by the expressions "anticipate",
"believe", "plan", "estimate", "expect", "intend" and similar expressions to
the extent they relate to the Company or its management. The forward-looking
statements are not historical facts but reflect the Company's current
assumptions and expectations regarding future results or events. These
forward-looking statements are subject to a number of risks and uncertainties
that could cause actual results or events to differ materially from current
assumptions and expectations. Assumptions made in preparing the
forward-looking statements contained in this release include, but are not
limited to, the following:

    - Under stable economic conditions the market for the Company's products
      will grow by greater than 10% annually, however market growth will be
      impaired in the current depressed economic environment.
    - The Company will develop and deliver new products on time in order to
      satisfy the demands of current and potential customers.
    - The Company will have adequate component supply to meet customer
      demand.
    - The Company's new investments in certain international markets will
      contribute to near term profitability.
    - The Company will successfully reduce product costs to improve the
      Company's gross margin and/or avoid any margin erosion associated with
      competitive pricing pressure.
    - Annual operating expenses will not exceed $47 million, excluding stock
      based compensation and amortization of acquired intangibles.
    - The prevailing exchange rate for US dollars and Euros to Canadian
      dollars will be US$1.00=CDN$1.20 and Euro 1=CDN$1.60.
    - The Company will continue to demonstrate its potential to generate
      sufficient profits in future fiscal years to realize the value of its
      future tax assets.

    Factors that could cause actual results to differ materially from expected
results include, but are not limited to, the following:

    - The Company's ability to forecast revenue and profitability is
      significantly impaired by the depressed global economic situation,
      which has introduced delays in the sales process; increased pricing
      pressure and a higher potential for cancellation or loss of
      opportunities in the sales pipeline.
    - The impact of the depressed global economy and other factors may result
      in financial difficulty for key suppliers that would impact the
      Company's ability to meet demand and cost reduction targets.
    - Weaker than expected success versus competitors in new customer and
      vertical market opportunities and/or loss of existing customers to
      competitors.
    - Revenue shortfalls due to delays in securing new customer opportunities
      and the lack of long term purchase commitments from customers.
    - Higher than targeted product costs and/or higher than expected declines
      in market pricing for the Company's products.
    - Product issues that result in increased costs to the Company and/or
      lost revenue opportunities.
    - Delays in product development programs for new products and new product
      features which lead to cost overruns and /or missed customer
      opportunities.
    - Changes in the mix of revenues between fixed and mobile transportation
      solutions.
    - Shifts in value of the Canadian dollar relative to billing currencies.

    Additional risks are discussed herein and under "Risk Factors" in the
Company's Annual Information Form available online at www.sedar.com.
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    (*) MARCH NETWORKS and the MARCH NETWORKS logo are trademarks of March
        Networks Corporation. All other trademarks are the property of their
        respective owners.
    




For further information:

For further information: Ken Taylor, Chief Financial Officer, March
Networks Corporation, (613) 591-8181, ktaylor@marchnetworks.com

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March Networks Corporation

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