OTTAWA , Feb. 27 /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 financial results for the third quarter and nine months of fiscal 2008 ended January 31, 2008 . All figures in Canadian dollars and in accordance with Canadian GAAP unless otherwise specified.
The Company recorded revenue of
The Company incurred a loss from continuing operations before income taxes
in the third quarter of fiscal 2008 of
The Company incurred a net loss from continuing operations in the third
quarter of fiscal 2008 of
"I am pleased with the continued diversification of revenue outside our largest customer. We have aggressively invested in R&D and look forward to the release of our next generation IP products and growing our European business with the acquisition of Cieffe", said Peter Strom , President and CEO, March Networks.
"The Company continued to grow and diversify its customer base in the seasonally slow third quarter and will continue to evaluate strategic investment opportunities to complement organic growth. The costs of developing a new product portfolio are significantly impacting the Company's profitability however these costs are expected to decline as these products are introduced over the next four to six months", said Ken Taylor , CFO of March Networks.
March Networks maintains its focus on long-term growth objectives and will continue to provide only full year guidance. The Company is maintaining its annual revenue guidance but revising its earnings guidance from that which was last published in the Company's second quarter results released on November 28, 2007 . The Company is revising its earnings guidance to reflect a lower gross margin and higher operating expenses than were previously anticipated. The Company's gross margin is expected to be negatively impacted by a higher anticipated mix of low margin Transportation revenue and the lower expected value of the US dollar relative to the Canadian dollar. Operating expenses are expected to be higher than previously anticipated primarily as a result of cost overruns on product development.