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

To: Francois Lavoie who wrote (716)	7/6/2000 4:42:05 PM
From: Ploni	Read Replies (2) \| Respond to of 792

KANATA, CANADA--CrossKeys Systems Corporation (Nasdaq: CKEY; TSE: CKY) today announced record sales for the fourth quarter and fiscal year ended May 31, 2000. For the fourth quarter ended May 31, 2000 CrossKeys reported revenue of $14.5 million versus $5.2 million for the corresponding period in the prior year, an increase of 182%. The net loss for the three months ended May 31, 2000, excluding amortization of goodwill and intangibles, was $1.7 million or $(0.09) Cdn per share compared to a net loss of $6.8 million or $(0.37) Cdn per share in the same period in the prior year. During the fiscal year CrossKeys acquired Dynamic Broadband Networks, Inc. and certain software licenses for an aggregate of $21 million to expand the Company's product line in broadband access and IP applications. Including amortization of goodwill and intangibles from these acquisitions, CrossKeys reported a net loss for the three months ended May 31, 2000 of $4.1 million. Fully diluted loss per share for the fourth quarter of fiscal 2000 was $(0.22) Cdn, based on 18.7 million average shares outstanding, versus a loss of $(0.37) Cdn per share in the fourth quarter of fiscal 1999, based on 18.5 million average shares outstanding. Fully diluted loss per share for the fourth quarter of fiscal 2000 was $(0.15) US, translated at the average exchange rate for the quarter of $0.6767 as reported by the Federal Reserve Bank of New York. For the year ended May 31, 2000, CrossKeys reported revenue of $45.1 million versus $43.8 million for the fiscal year ended May 2, 1999. Before amortization of goodwill and intangibles, and in-process research and development expenses associated with our technology acquisitions, the Company reported a net loss of $5.9 million or $(0.32) Cdn per share compared to a net loss of $1.5 million or $(0.08) Cdn per share in fiscal year ended May 2, 1999. Including the amortization of goodwill and intangibles, and in-process research and development expenses, CrossKeys reported a net loss of $13.1 million for the year ended May 31, 2000. Fully diluted loss per share for fiscal 2000 was $(0.70) Cdn based on 18.6 million average shares outstanding versus a loss per share of $(0.08) Cdn for the fiscal 1999 year end, based on 18.4 million shares outstanding. Fully diluted loss per share for the year ended May 31, 2000 was $(0.48) US translated at the average exchange rate for the fiscal year of $0.6798 as reported by the Federal Reserve Bank of New York. "Our continued revenue growth is a clear indicator that our new business model has started to pay off," said Ian McLaren, President and CEO, CrossKeys. "Our record revenue is based on dramatic increases in core product sales-from 60 percent of total revenue last year to 90 percent this year. With this focus on product revenue, our gross margins have improved from 70 percent last year to 79 percent for fiscal year 2000. Driving our product sales growth was the increase in the number of employees in the Americas and Europe. Through their efforts, we nearly doubled our revenue coming from the fast-growing new alternate carriers, especially with CLEC's in the US." Mr. McLaren also said, "Our successful acquisition of Dynamic Broadband Networks, and the subsequent launch and sales of the first product from the acquisition, underlines our strategy to expand our product portfolio. We have already set teams to work on bringing four new CrossKeys products to market for this fiscal year. CrossKeys has changed its direction and increased our capacity in the field. There are numerous challenges ahead but we have the muscle to meet them and the foundation necessary for profitability." Significant highlights during the year and quarter included: * Achieved record bookings, revenue and gross margins for the fourth quarter and fiscal year. * Grew core product revenue by 57% in fiscal 2000. * Increased gross margins to 79% in fiscal 2000 from 70% in fiscal year 1999. * Doubled our addressable market with the acquisition of Dynamic Broadband Networks and the introduction of CrossKeys Dyband(TM) software. * Signed our first CrossKeys Dyband(TM) customer and value added reseller (VAR). * Increased market penetration through the Alcatel channel. * Quadrupled our number of industry relationships, to include Alcatel, Ericsson, Marconi, Tivoli, Fujitsu, Portal, Eftia, Parc, Orchestream and Storm. * Diversified our customer base with 91% growth in revenue from CLEC and other emerging markets.