OTTAWA, Feb. 29 /CNW Telbec/ - Plaintree Systems Inc. ("Plaintree" or
"Company") today reported its results for the third quarter of fiscal 2008
ended December 31, 2007.
Product revenue for the quarter was $63,660, up from $42,216 for the
corresponding quarter of the previous year. The Company also experienced a
significant decline in management services revenue for the quarter recording
$31,600 as compared to $513,500 for the corresponding period of fiscal 2007.
The primary reason for the significant reduction in management services
revenue was due to the unavailability of Plaintree staff available for such
services due to increased Plaintree requirements. Plaintree staff has been
involved on Plaintree related business, including preparing for the proposed
acquisition of Hypernetics Inc. and the Triodetic Group of Companies (see
press release dated February 21, 2008 for further details). Upon the
completion of the above-mentioned transaction, management services revenue
should cease as the Company changes its focus to managing and growing the
business of the acquired companies. The Company states that it is unlikely
that management services revenue will increase again to past levels.
The net loss experienced by the Company for the quarter was $332,441 or
0.00 cents per share, compared to a net gain of $337,378 or (0.00) cents per
share for the corresponding quarter of the previous year.
Plaintree announced previously this month (February 21, 2008) that it
will hold an annual and special meeting of its shareholders on March 18, 2008.
In addition to annual business, the meeting will consider the proposed
acquisition by Plaintree of Hypernetics Inc. and the Triodetic Group of
Companies. Information regarding the transaction and the companies proposed to
be acquired can be found in the management proxy circular prepared by the
Company for the meeting. A copy of the management proxy circular can be
obtained from the Company's website at www.plaintree.com and/or under
Plaintree's name at www.sedar.com.
Plaintree continues to investigate sources of financing. However, if the
Company is not successful in obtaining the necessary funding, continuation of
the existing business may not be viable. There can be no assurance that the
Company will be able to raise additional capital or that anticipated revenues
will materialize or be at a level sufficient to sustain Plaintree's
operations. Should these funding options not materialize, the Company may
For more information on the Company fiscal 2008 Q3 results, please refer
to Plaintree's financial statements together with the related management's
discussion and analysis report, copies of which can be obtained from the
Company's website at www.plaintree.com and/or under Plaintree's name at
About Plaintree Systems
Ottawa-based, Plaintree Systems Inc. (www.plaintree.com), founded in 1988
provides management services and specializes in developing optical wireless
communications equipment for the Local Area, Wide Area, Voice, Internet and
Plaintree is publicly quoted in the U.S. on the OTC BB (LANPF), with
90,221,634 shares outstanding.
This press release may include statements that are forward-looking and
based on current expectations. The actual results of the company may differ
materially from current expectations. The business of the company is subject
to many risks and uncertainties, including changes in markets for the
company's products, delays in product development and introduction to
manufacturing and intense competition. For a more detailed discussion of the
risks and uncertainties related to the company's business, please refer to
documents filed by the company with the U.S. Securities and Exchange
Commission, including the Company's Form 20-F dated September 28, 2007.
For further information:
For further information: Lynn Saunders, (613) 623-3434 ext 3002