To: let who wrote (1142 ) 11/11/1999 2:20:00 PM From: Sleeper Respond to of 1200
NOVEMBER 11, 1999 Sand Technology Systems International Reports Year-End Results MONTREAL, QUEBEC--SAND TECHNOLOGY SYSTEMS INTERNATIONAL INC. (NASDAQ: SNDT) reported today a net loss for its fiscal year ended July 31, 1999 of ($4,960,964) or ($0.582) per share on sales of $2,091,067 as compared to a net loss of ($906,722) or ($0.106) per share on sales of $3,088,041 for the fiscal year ended July 31, 1998. Arthur Ritchie, President and Chief Executive Officer of Sand, said that ``these results reflect the decision of the company to substantially increase its investment in sales and marketing, and in aggressively stepping up its ongoing development efforts, in line with the growing acceptance of its Nucleus products in the marketplace. We now have over fifty major enterprises in various stages of Nucleus procurement as part of their growth strategies for the new millennium.' Mr. Ritchie added that the company has put in place a strategy of getting Nucleus products adopted by a wide range of organizations. "We have elected to go wide rather than deep as the first stage of making Nucleus Exploration a pervasive product in the marketplace. As a result, we have focused on initially small 'proof of concept' projects with a broad range of customers. This allows them to swiftly verify Nucleus' unique capabilities at minimal risk. As a result of successful proof of concept installations these organizations are now positioning major Nucleus expansion as part of their information technology plans." The company has expanded its direct sales and marketing capabilities in North America and Europe to ensure broad acceptance of Nucleus products as a precursor to indirect sales activities by its channel partners. Mr. Ritchie added, ``the direct sales approach demonstrates our commitment to customers and partners and shows we're in it for the long term. We are augmenting every Nucleus software implementation with Sand consulting services, providing an enhanced revenue stream, quick and effective adoption of Nucleus, and total customer satisfaction. We are already seeing that this approach is optimum for our customers and partners in North America and Europe.' Mr. Ritchie emphasized that fiscal year 1999 was a watershed year for Sand Technology. The company decided to end its ties to the mainframe hardware market and to sell its stake in Hitachi Data Systems Inc. in order to focus completely on the design, development, marketing and support of leading innovative software products. ``Since the sale was completed after our July 31 year end, the financial impact will only be evident in our next quarter's results,' said Mr. Ritchie. ``We decided, with the growing evidence of Nucleus market acceptance, that the time was right to focus our capital and resources on Nucleus expansion.' To reflect this change, the Company has adopted a new logo and the streamlined name of Sand Technology. The Company is excited about the prospects for Fiscal 2000. According to Mr. Ritchie, ``these initial implementations of Nucleus may produce relatively small revenues, but they fit within the limited budgets that organizations can spare as they focus on finalizing Y2K issues, and allow them to budget for Nucleus in their next fiscal year. As we enter the last half of our Fiscal 2000, these enterprises will be past the Y2K 'freeze' and on their way to major Nucleus deployments. Meanwhile, we intend to increase the number of companies that are embracing Nucleus as a critical element of their Business Intelligence strategies for the new millennium. Perhaps even more relevant is the fact that our customers have discovered specific uses for Nucleus within vertical markets like healthcare, banking, brokerage and direct marketing that take specific advantage of Nucleus' unique product capabilities. These initial customer implementations have proven not to be customer-specific. They are very repeatable throughout many companies across vertical markets. This repeatability bodes well for Nucleus market penetration, revenue and profit in the future.' Arthur Richie actually said this? INCREDIBLE! Sleeper