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

To: Ploni who wrote (747)	9/11/2000 8:00:11 PM
From: Francois Lavoie	Read Replies (2) \| Respond to of 792

Charles, I agree with you. I tend to think that inside information led to the stock trading down. Jail would be appropriate, but... what is confusing me is that the market is down as a whole, and that this stock is volative and vulnerable when the market tanks. In addition, the volume was ordinary... Francois. Monday September 11, 4:19 pm Eastern Time Press Release CrossKeys Systems Corporation Announces Preliminary Estimates for First Quarter Results KANATA, Ontario,--(BUSINESS WIRE)--Sept. 11, 2000--CrossKeys Systems Corporation (NASDAQ:CKEY - news; TSE:CKY. - news) today announced preliminary unaudited financial results for the first quarter of fiscal 2001, which ended September 3, 2000. Management expects revenue for the first quarter of fiscal 2001 to be between Cdn $13.0 and Cdn $13.5 million compared to Cdn $7.6 million in the first quarter of fiscal 2000, an increase in excess of 70%. This compares with Revenue of Cdn $14.5 million in the fourth quarter of fiscal 2000. Before Amortization of Goodwill and Intangibles, this is expected to result in a net loss of between $0.21 and $0.24 Cdn per share (US $0.14 to $0.16 per share). Including Amortization of Goodwill and Intangibles, the company expects a net loss for the quarter of between $0.34 and $0.37 Cdn per share (US $ 0.23 to $0.25 per share). A small number of significant license sales through the direct sales channel did not close in the timeframe expected. This resulted in first quarter revenue and earnings that were below recent analyst estimates. Based on preliminary unaudited results, on a year over year basis, core product revenue grew in excess of 110%. Revenue from direct and other channels showed continued strength, with revenue driven from the direct, Marconi, Ericsson, and Dyband VAR channels. Backlog grew in the quarter with orders exceeding shipments. CrossKeys ended the quarter with Cdn $18.4 million in cash and a trade Days Sales Outstanding of less than 85 days. Ian McLaren, President and CEO, CrossKeys said, ``We remain confident that our strategy to increase the number of direct sales people as well as widen our channels to market will strengthen our position in the marketplace. Our existing channels, new channels and the customers we meet with reinforce daily the industry's growing need for products that guarantee quality of service for the Internet.'' Mr. McLaren further commented: ``Our CrossKeys Dyband product generated a small amount of revenue this quarter as we expected, and we continue to make progress as planned from a sales, marketing, and product development perspective for this very exciting technology.'' The preliminary results in this news release are estimates only and actual results may vary. Finalized results for the first quarter of fiscal 2001 will be reported on September 27, 2000. The Company's preliminary results are in accordance with accounting principles generally accepted in the United States. A conference call to discuss the preliminary results is scheduled for 5:00p.m. today. Interested parties should call (877) 871-4104 or (416) 620-9644 10 minutes prior to the call. This announcement may contain forward-looking statements as defined in the US 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. About CrossKeys Systems Corporation CrossKeys Systems Corporation (www.crosskeys.com) develops software that makes the Internet work for business. The world's largest and fastest growing service providers manage the equipment, traffic, and service on their telecom networks with CrossKeys. CrossKeys Systems Corporation 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. CrossKeys, CrossKeys Resolve and logo are registered trademarks of CrossKeys Systems Corporation. All other trademarks are the property of their respective holders and are acknowledged by CrossKeys Systems Corporation. -------------------------------------------------------------------------------- Contact: CrossKeys Communications Stefania Allevato, 613/599-2300 ext. 8507 E-mail: allevato@crosskeys.com or CrossKeys Investor Relations Shelley Moorhead, 613/599-2300 ext. 8336 E-mail: moorhead@crosskeys.com