8/17/99 - PLAINTREE SYSTEMS ANNOUNCES YEAR-END RESULTS FOR FISCAL YEAR 1999 AND FIRST-QUARTER RESULTS FOR FISCAL YEAR 2000
OTTAWA, Aug 17, 1999 /CNW-PRN via COMTEX/ -- Plaintree Systems Inc. (TSE:LAN, NASD OTC BB: LANPF) today announced financial results for its fiscal year 1999, ended March 31, 1999 and the first quarter of fiscal year 2000, ended June 30, 1999.
Revenues for the fiscal year 1999 were $13,704,805 (CDN), compared to $15,710,867 in the fiscal year 1998. The net loss for the year was $23, 802,053 or $1.37 per share, compared to a net loss of $24,147,417 or $1.39 for the previous year.
Revenues for the first quarter of fiscal year 2000 were $1,210,449 (CDN), compared to $3,694,566 in the first quarter of fiscal 1999. The net lossfor the quarter was $572,925 or $0.05 per share (after preferred share dividend provision), compared to a net loss of $4,996, 973 or $0.30 for the same period a year ago.
The company cut operating costs significantly over the first quarter to $1,154,679, a decrease from $5,959,656 in the first quarter of 1999.
''Although the past year has been a difficult and challenging time for Plaintree, we have been encouraged by the fact that our first quarter results illustrate that we have been able to stabilize operations through the continuing sale of our legacy products to our installed customer base,'' said Plaintree president and CEO Jay Richardson. ''By reducing operations to amore modest but self-sustaining rate, the company has been able to continue operations and meet immediate cash requirements.''
Yesterday, Plaintree announced that it has entered into an acquisition agreement with Ottawa-based Targa Group, that is expected to result in Plaintree assuming control of Targa's businesses in exchange for Plaintree shares. A privately owned company with operations in Ottawa, Toronto, Arnprior and Charlotte, North Carolina, Targa Group Inc. designs and manufactures electronic equipment, primarily for the aerospace industry, and generates significant cash flow and profitability.
''The completion of the agreement with Targa Group will mean a new beginning for Plaintree,'' Mr. Richardson continued. ''But it's a new beginning founded on proven technology, a strong and loyal customer base,an ISO-9002 manufacturing facility and a solid partnership that will inject much-needed cash flow to support our sales and R&D efforts. We're very excited at the potential this new relationship will bring.''
About Plaintree Systems A publicly held company, founded in 1988, Plaintree Systems develops and sells local area network switches, maintaining a reputation for high quality products and technical support. Headquartered in the Ottawa region, Plaintree also maintains operations in the US. Plaintree is publicly traded in Canada on the TSE and in the US on the NASD OTC Bulletin Board. Plaintree maintains a World Wide Web site on the Internet at plaintree.com.
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