Rob,
More good news....NOT !!!
KANATA, Ontario--(BUSINESS WIRE)--May 10, 1999--CrossKeys
Systems Corp. (Nasdaq:CKEY.O) (TSE:CKY), a leading supplier of software
for telecommunication service providers, Monday announced preliminary
unaudited financial results for the fourth quarter ended May 2, 1999.
Management expects revenue for the fourth quarter of fiscal 1999
to be between $5.0 million and $5.5 million. This will result in a
loss for the quarter of $0.19 to $0.21Cdn per share. Fully diluted
earnings per share in U.S. for the fourth quarter of fiscal 1999 is
expected to be a loss of $0.13 to $0.14 translated at the average
exchange rate for the quarter of $0.6709 as reported by the Federal
Reserve Bank of New York.
In addition to these financial results, management also believes
it may incur certain one-time charges to facilitate the transition of
the company's operations towards a focus on product sales. The
restructuring charges are expected to total approximately $3 million,
further increasing the company's net loss for the year ended May 2,
1999.
"Following 12 consecutive quarters of growth, clearly we are
disappointed with results for the fourth quarter," said John Selwyn,
founder of CrossKeys Systems. "The bottom line is that we failed to
close a number of sales opportunities. The transition from a project
driven company to one with the potential, excitement and upside of a
products company we knew would not be easy. We are still in that
transition and I am confident that we have made the right decisions to
position CrossKeys as a leading supplier of network management
products to the carriers."
The preliminary results in this news release are estimates only
and actual results may vary. Finalized results for fiscal 1999 fourth
quarter and year end will be reported on June 3, 1999. The company's
preliminary results are in accordance with accounting principles
generally accepted in the United States.
About CrossKeys
CrossKeys Systems (www.crosskeys.com) is a leading developer of
service, network and element management solutions for over 170 of the
world's telecommunication service providers, helping them gain a
competitive advantage in deregulated markets. CrossKeys combines a
commitment to research and development with experience in the world's
most demanding telecommunication markets to deliver highly advanced
software applications.
A leading supplier to Newbridge Networks Corp., Compaq, Siemens
AG and Ascend, CrossKeys products help service providers deliver
differentiated services, implement new technologies, and manage
multiple vendor networks. CrossKeys has been ISO 9001 certified since
1995.
CrossKeys Systems is a public company whose common shares are
listed for trading on NASDAQ (CKEY) in the United States and on The
Toronto Stock Exchange (CKY) in Canada.
This announcement may contain forward-looking statements as
defined by the U.S. Private Securities Litigation Reform Act of 1995,
such as statements related to the industry motivators, market and
partnership opportunities. The company cautions that these statements
are based on current expectations that are subject to risks and
uncertainties. Actual results may differ due to factors such as
customer demand, product shipping schedules, product mix, competitive
products and pricing pressures, and changes in the service, network
and element management software applications market specifically.
Additional information identifying risks and uncertainties is
contained in the company's filings with the Ontario Securities
Commission and the Securities and Exchange Commission.
Note to Editors: CrossKeys and logo are registered trademarks of
CrossKeys Systems Corp. All other trademarks are the property of
their respective holders and are acknowledged by CrossKeys Systems
Corp.
--30--JP/np*
CONTACT: CrossKeys Systems Corp.
John Blackmore, 613/599-2300 (ext. 8936)
613/599-2290 (fax)
E-mail: johnblac@crosskeys.com
Web site: www.crosskeys.com
or
CrossKeys Systems Corp.
Shelley Moorhead, 613/599-2300 (ext. 8336)
E-mail: moorhead@crosskeys.com
KEYWORD: INTERNATIONAL CANADA NEW YORK
INDUSTRY KEYWORD: TELECOMMUNICATIONS COMED EARNINGS
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