MONTREAL, Dec. 20, 2010 /PRNewswire-FirstCall/ -- SAND Technology Inc. (BULLETIN BOARD: SNDTF) , an international provider of data management software and best practices, today reported a net loss for the three months ended October 31, 2010 of $34,735 on revenues of $1,968,779 compared to net income of $431,290 on revenues of $2,485,464 for the three months ended October 31, 2009.
The Company reported income from operations, before foreign exchange and interest, for the three months ended October 31, 2010 of $111,299 compared with income from operations, before foreign exchange and interest, for the three months ended October 31, 2009 of $517,352.
The Company raised additional financing from a significant shareholder and private investors during the three months ended October 31, 2010 in the approximate amount of $448,557, for which shares will be issued shortly. Cash flows used in Operating Activities for the three months ended October 31, 2010 amounted to $25,466 compared to cash flows used in Operating Activities for the three months ended October 31, 2009 of $211,993. All figures are in Canadian dollars.
"Our technology is at the forefront of the market and with the change of the sales and marketing teams, we are seeing the beginnings of change in our results. The hard work is beginning to pay off" stated Thomas M. O'Donnell, SAND's President and Chief Executive Officer. "SAND's products are market-leading with in-database analytics, Text Analytics, and pattern analysis. We have been turning SAND around and you are starting to see the green shoots in these results. I look forward to a change in SAND's future."
About SAND Technology
SAND Technology provides advanced analytics database software for analyzing large amounts of extreme data on-demand while lowering TCO, leveraging existing infrastructure and improving operational performance.
SAND's software drives solutions for CRM analytics, and specialized applications for government, healthcare, financial services, telecommunications, retail, transportation, and other business sectors. SAND has achieved "Certified for SAP NetWeaver" status and SAND Nearline Integration Controller has achieved "Powered by SAP NetWeaver" status.
SAND Technology has offices in the United States, Canada, the United Kingdom and Central Europe.
SAND Technology, SAND CDBMS, Nucleus, N-Vector, and MPSO are registered trademarks, and SAND/DNA, SAND/DNA Access, SAND/DNA Analytics, SAND/DNA aCRM, SAND Analytic Server, SAND Searchable Archive, SAND Extensible Warehouse, and all related SAND-, SAND/DNA, and Nucleus-based marks and designs, are trademarks of SAND Technology Inc. Other trademarks remain the property of their respective owners.
Caution Concerning Forward-Looking Statements
Certain statements contained in this press release are "forward-looking statements" within the meaning of the United States Securities Act of 1934 and of the United States Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995 or as "forward-looking information" under Canadian securities legislation (collectively, "forward looking statements"). The forward-looking statements are intended to be subject to the safe harbour protection provided by these Acts. We have based these forward-looking statements on our current expectations and projections about future results, levels of activity, events, trends or plans. Such forward-looking statements are not guarantees and by their nature are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of SAND to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All forward-looking statements included in this press release are based on current expectations and on information available to SAND on the date of this press release. For a more detailed discussion of these risks and uncertainties and other business risks, see SAND's current Annual Report and SAND's reports to the Securities and Exchange Commission (filed on EDGAR at http://www.sec.gov/) and the Canadian securities authorities (filed on SEDAR at http://www.sedar.com/). You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. Except as required by applicable laws, we undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.
Financial Highlights
The unaudited Consolidated Financial Statements of the Company for three month periods ended October 31, 2010 and 2009 and the Notes thereto are presented in accordance with Canadian generally accepted accounting principles ("Canadian GAAP") for interim financial reporting. These unaudited interim Consolidated Financial Statements have been prepared using the same accounting policies and methods of their application as the annual Consolidated Financial Statements for the year ended July 31, 2010. There have been no new accounting policies that have been adopted effective August 1, 2010.
The following financial information is expressed in Canadian dollars and is derived from its Consolidated Financial Statements for the three month periods ended October 31, 2010 and 2009. The following financial information is not necessarily indicative of the results of future operations and should be read in conjunction with, and is qualified in its entirety by, the Consolidated Financial Statements for the three month periods ended October 31, 2010 and 2009. All figures are in Canadian dollars.
Three months ended October 31, ------------------ Results of Operations 2010 2009 --------------------- ---- ---- Revenue $1,968,779 $2,485,464 Cost of sales and product support 326,184 307,120 ------- ------- Gross profit 1,642,595 2,178,344 --------- --------- Operating Expenses Research and development costs, net 483,758 486,785 Amortization of capital Assets and other assets 12,933 14,528 Selling, general and administrative 1,034,605 1,159,679 --------- 1,531,296 1,660,992 --------- --------- Income from operations before the undernoted items 111,299 517,352 Foreign exchange loss 55,574 (355) Interest expense 90,460 86,417 ------ 146,034 86,062 ------- ------ Net income (loss) and comprehensive income (loss) $(34,735) $431,290 ======== ======== Basic income (loss) per share $(0.00) $0.03 ====== ===== Diluted income (loss) per share $(0.00) $0.02 ====== ===== Basic weighted average number of common shares 15,889,620 14,318,189 ========== ========== Diluted weighted average number of common shares 15,889,620 19,372,550 ========== ========== As at October 31, ----------------- Financial Position 2010 2009 ------------------ ---- ---- Cash $966,856 $303,531 Working Capital Deficiency (967,606) (448,496) Total Assets 2,650,193 2,630,682 Total Liabilities 5,110,592 4,552,035 Shareholders' Deficiency (2,460,399) (1,921,353) Three Months Ended October 31, ------------------ Rates of Exchange 2010 2009 ----------------- ---- ---- At period end - U.S. dollar $1.0202 $1.0774 Average for the period - U.S. dollar 1.0313 1.0750 At period end - U.K. pound 1.6321 1.7753 Average for the period - U.K. pound 1.6183 1.7575 At period end - Euro 1.4155 1.5896 Average for the period - Euro 1.3702 1.5638
SAND Technology Inc.
CONTACT: Media - North America, UK/ Western European Press,
German/Central European Press, Mr. Michael Pilcher, Chief Operating Officer,
+44 779 675 7671, mike.pilcher@sand.com, or Investor Relations, Mr. Tony J.
Giuliano, Chief Financial Officer, +1-514-906-4179, tony.giuliano@sand.com,
both of SAND Technology Inc.
