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Technology Stocks : CrossKeys Systems Corp [CKEY and CKY/TSE] -- Ignore unavailable to you. Want to Upgrade?

To: Glenn McDougall who wrote (621)	12/16/1999 7:29:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 792

Thursday, December 16, 1999 CrossKeys reports good news By Kevin Bell, Ottawa Sun CrossKeys Systems Corp. surprised analysts yesterday with strong revenue growth and a lower loss than anticipated. Revenue in its second quarter grew by 46% to $11 million compared to $7.6 million in its first quarter, but sales are still significantly lower than the $13 million the company reported in the same period last year. The company reported a loss of $1.5 million, or 8cents a share, compared to earnings of 11cents a share a year ago. The loss was smaller than the 17cents that analysts were expecting. CEO Ian McLaren said the revenue surge "underscores the excitement and momentum" as a strategy to move from a project-based business to higher margin products begins to pay off. The company is investing heavily to adopt a growth strategy over the short term rather than put emphasis on short-term earnings. It does not expect to report a profit until its fourth quarter. As part of the strategy, it has been on a hiring binge. In the last quarter, 65 people were added to the payroll bringing its total number of workers to 294, about 250 of them in the Ottawa area. The investments occurred in all parts of the firm and kicked off a significant growth spurt in the U.S. But "I believe we've still got a lot of work to do," McLaren said.