March Networks Reports Record Revenue and Return to Positive Operating Earnings* in Second Quarter of Fiscal 2009

Summary Operating Results: ------------------------------------------------------------------------- ------------------------------------------------------------------------- $Cdn millions...


Summary Operating Results: ------------------------------------------------------------------------- ------------------------------------------------------------------------- $Cdn millions Q1-Q2 Q1-Q2 except EPS data Q2 2009 Q2 2008 2009 2008 ------------------------------------------------------------------------- Revenue $28.3 $27.7 $56.1 $52.3 ------------------------------------------------------------------------- Operating earnings* 1.0 (1.0)** (0.2)** (0.1)** ------------------------------------------------------------------------- Net loss $(1.0) $(0.7) $(3.5) $(0.3) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Loss per share $(0.06) $(0.04) $(0.20) $(0.02) ------------------------------------------------------------------------- ------------------------------------------------------------------------- * Non-GAAP measure: earnings (loss) before stock based compensation, amortization of acquired intangibles, restructuring costs, interest and income taxes. This measure may not be comparable to similar measures used by other companies. ** Includes provisions of $1.2 million for potential contract losses in Q1'2009 and $2.4 million for retrofit costs in Q2'2008.

OTTAWA, Nov. 26 /PRNewswire-FirstCall/ - March Networks(TM) (TSX:MN), a leading provider of innovative video and data applications used for security surveillance, monitoring, analysis and business optimization, today announced financial results for the second quarter and six months ended October 31, 2008 . All figures in Canadian dollars and in accordance with Canadian GAAP unless otherwise specified.

The Company achieved record revenue of $28.3 million in the second quarter of fiscal 2009 representing an increase of 2% as compared to revenue of $27.7 million and $27.8 million in the second quarter of fiscal 2008 and the first quarter of fiscal 2009, respectively. Revenue for the first six months of fiscal 2009 of $56.1 million increased by 7% as compared to the first six months of fiscal 2008.

The Company recorded non-GAAP operating earnings of $1.0 million in the second quarter of fiscal 2009 compared to a loss of $1.0 million in the second quarter of fiscal 2008 and represents a $2.2 million improvement from the loss of $1.2 million that was recorded in the first quarter of fiscal 2009. Operating earnings for the first half of fiscal 2009 reflected a loss of $168,000 as compared to a loss of $58,000 in the first six months of fiscal 2008.

The Company incurred a net loss in the second quarter of fiscal 2009 of $1.0 million or $0.06 per share, including the impact of $1.4 million of restructuring charges associated with staff reductions during the quarter, as compared to a net loss of $666,000, or $0.04 per share, in the second quarter of fiscal 2008, and a net loss of $2.4 million, or $0.14 per share, in the first quarter of fiscal 2009.

"Q2 was a solid quarter for the Company highlighted by record revenues in a challenging economic environment", said Peter Strom , President and Chief Executive Officer. "Our expanded product line, new vertical markets and growing international business are key contributors to these results."

SOURCE MARCH NETWORKS CORPORATION