March Networks Announces Preliminary Fourth Quarter and Fiscal 2008 Results and 2009 Outlook

OTTAWA , May 26 /PRNewswire-FirstCall/ - March Networks(TM) (TSX:MN; AIM:MNW), a leading provider of innovative video and data applications used for security surveillance, monitoring, analysis and business optimization, today announced preliminary...


OTTAWA , May 26 /PRNewswire-FirstCall/ - March Networks(TM) (TSX:MN; AIM:MNW), a leading provider of innovative video and data applications used for security surveillance, monitoring, analysis and business optimization, today announced preliminary financial results for the fourth quarter and fiscal year ended April 30, 2008 . All figures in Canadian dollars and in accordance with Canadian GAAP unless otherwise specified.

The Company expects to record fourth quarter fiscal 2008 revenue of approximately $21 million which results in expected annual revenue of approximately $94 million for fiscal 2008 which is within the Company's guidance of $94 million to $103 million.

The Company's loss from continuing operations before income taxes for the fourth quarter of fiscal 2008 is expected to be approximately $4 million which results in an expected pre-tax loss of approximately $7 million for fiscal 2008. The Company's pre-tax loss for fiscal 2008 is expected to exceed the Company's guidance range of $3 million to $5 million due primarily to lower than expected fourth quarter revenue and higher than expected costs.

Business Outlook

The Company's revenue expectations for the fiscal year ending April 30, 2009 are in the range of $100 million to $115 million.

The Company's expectations of operating earnings for fiscal 2009 are in the range of $0.5 million to $5 million. Operating earnings is a non-GAAP measure that the Company uses to evaluate its performance in order to emphasize cash flow impacting operating activities. The Company defines this measure as earnings before interest, taxes, amortization of acquired intangibles and stock based compensation expense. The Company's expectations of operating earnings for fiscal 2009 compare to preliminary results for fiscal 2008 which indicate a loss of approximately $7 million. This measure may not be comparable to similar measures used by other companies.

"We expect 2009 to be an exciting year for the Company with a return to profitability, an industry leading product line and strong international growth" said Peter Strom , President and Chief Executive Officer.

The Company will release its fourth quarter and fiscal year 2008 financial results on June 11, 2008 and will discuss the results on a conference call and webcast on June 12, 2008 at 8:30 a.m. EDT ( 1:30 p.m. BST ). The conference call may be accessed by dialing 1-800-732-0232 ( North America ) or 00 800 2288 3501 ( Europe ).

The conference call webcast can be accessed at http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2284920

A replay of the conference call will be available from June 12 at 10:30 a.m. EDT until June 19, 2008 at 11:59 p.m. EDT . The replay can be accessed at 1-877-289-8525 or 416-640-1917. The passcode for the replay is 21271057#

About March Networks

March Networks(TM) (TSX:MN; AIM:MNW) 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.

Forward-Looking Statements

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.

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