March Networks Releases First Quarter 2008 Financial Results

OTTAWA, Aug. 29 /PRNewswire-FirstCall/ - Summary Operating Results: ------------------------------------------------------------------------- $Cdn millions except EPS data Q1'08 Q4'07 Q1'07...


OTTAWA, Aug. 29 /PRNewswire-FirstCall/ - Summary Operating Results: ------------------------------------------------------------------------- $Cdn millions except EPS data Q1'08 Q4'07 Q1'07 ------------------------------------------------------------------------- Revenue $ 24.5 $ 19.8 $ 22.8 Earnings (loss) from continuing operations before income taxes $ 0.9 $ (0.7) $ 5.1 Net earnings (loss) from continuing operations $ 0.4 $ (0.4) $ 2.8 ------------------------------------------------------------------------- Diluted earnings (loss) per share from continuing operations $ 0.02 $(0.03) $ 0.16 -------------------------------------------------------------------------

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 financial results for the first quarter of fiscal 2008 ended July 31, 2007 . All figures in Canadian dollars and in accordance with Canadian GAAP unless otherwise specified.

Revenue for the fiscal quarter ended July 31, 2007 was $24.5 million, compared with $22.8 million in the same quarter in the prior fiscal year, representing an increase of 8%. Revenue for the first quarter of fiscal 2008 represented an increase of 24% as compared to the fourth quarter of fiscal 2007.

Net earnings from continuing operations before income taxes for the first quarter of fiscal 2008 were $930,000 which compares to earnings of $5.1 million in the first quarter of fiscal 2007 and a loss of $692,000 in the fourth quarter of fiscal 2007. Net earnings from continuing operations for the quarter ended July 31, 2007 were $374,000 or $0.02 per diluted share which compares to earnings of $2.8 million or $0.16 per diluted share in the same quarter last year and a loss of $444,000 or $0.03 per share in the fourth quarter of fiscal 2007.

"Q1 represented an outstanding quarter for the Company as we continued to execute on our plan to become a global leader in the IP video marketplace. The results of the first quarter are a confirmation that the investments of the past year are contributing to strong organic growth and a diversifying revenue base. I am pleased with our success in winning new business and look forward to building on this success throughout the fiscal year" said Peter Strom , President and CEO of March Networks.

"The Company demonstrated in the first quarter of fiscal 2008 that it is on track to achieving its fiscal 2008 revenue and profitability objectives. The Company's strong balance sheet will support the Company's strategy of enhancing its competitive position by more aggressively expanding its sales and marketing presence and accelerating its product development initiatives in fiscal 2008" said Ken Taylor , CFO of March Networks.

Business Outlook

March Networks maintains its focus on long-term growth objectives and will continue to provide only full year guidance. The Company is maintaining the revised fiscal 2008 annual guidance ranges that were published in its preliminary first quarter results release on August 7, 2007 .

Revenue for the fiscal year ending April 30, 2008 is expected to be in the range of $94 million to $103 million.

Net earnings before income taxes for the fiscal year ending April 30, 2008 are expected to be in the range of $0.5 million to $4.5 million.

The Company believes it will achieve results toward the top end of its fiscal 2008 guidance based upon revenue and order intake levels achieved to date.

The Company will discuss the results on a conference call and webcast on August 30, 2007 at 8:30 a.m. EDT ( 1:30 p.m. BST ). The conference call may be accessed by dialing 1-800-733-7560 ( North America ) or 00 800 2288 3501 ( Europe ).

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