OTTAWA, July 22 /CNW Telbec/ - Plaintree Systems Inc. ("Plaintree" or
"Company") announced today that it has released its audited financial
statements and related management discussion and analysis for the year ended
March 31, 2008. Management services revenue decreased by $1,015,150 from
$2,014,500 in 2007 to $999,350 in 2008 as the Company's management dedicated
its time to the acquisition process of the Triodetic group of companies and
Hypernetics Limited ("Hypernetics") which took place on April 1, 2008.
The net income for fiscal 2008 was $70,453 as compared to $969,752 for
fiscal 2007. The primary contributing factors to the decreased income was the
decline in management consulting fees that are determined at the discretion of
the related parties and the increased legal and accounting fees associated
with the acquisitions.
Earnings per share were $0.00 in 2008 compared to $0.01 in 2007.
Cash generated by the Company in operating activities decreased from
$16,555 in 2007 to $7,057 in 2008.
"The previously announced acquisitions by Plaintree of Hypernetics and
the Triodetic group of companies were a huge step for the Company", said David
Watson, CEO. "We have decided that the best path for the company was to
diversify beyond the telecom world. The addition of an avionics and structural
steel company, both with revenue streams, should help towards establishing the
viability of this Company".
Further information regarding Plaintree's fiscal 2008 results can be
found by examining the Company's 2008 annual report and management discussions
and analysis report for the year ended March 31, 2008, both located on the
Company's website at www.plaintree.com or on SEDAR at www.sedar.com by
searching "Plaintree Systems Inc.".
Plaintree specializes in developing optical wireless communications
equipment for Local Area, Wide Area, Voice, Internet and Security Networks. On
April 1, 2008, Plaintree completed its acquisition of all of the issued and
outstanding share capital of Hypernetics and 4439112 Canada Inc., which
through a wholly-owned subsidiary owned all of the share capital of Triodetic
Building Products Inc. and other subsidiaries (the "Triodetic Group of
Companies"). Hypernetics was established in 1972 and was a manufacturer of
avionic components for various applications including aircraft antiskid
braking, aircraft instrument indicators, solenoids, high purity valves and
permanent magnet alternators. The Triodetic Group of Companies, with over 40
years of experience, was a design/build manufacturer of steel, aluminium and
stainless steel specialty structures such as commercial domes, free form
structures, barrel vaults, space frames and industrial dome coverings.
Immediately following the completion of the acquisitions, Plaintree also
amalgamated the businesses of each of Hypernetics and the Triodetic Group of
Companies into Plaintree and, since then, those businesses have been operated
by Plaintree as separate divisions of the Company. Also on April 1, 2008, as
ratified at the March 18, 2008 shareholders meeting, the shares of the Company
were consolidated on the basis of 10 pre-consolidation shares for every 1
Plaintree is publicly traded in the U.S. on the OTC BB (PTEEF), with
12,522,143 common shares and 18,325 class A preferred 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 and Canadian regulatory authorities.
For further information:
For further information: Lynn Saunders, (613) 623-3434 ext 3002