MONTREAL, June 29, 2011 /PRNewswire/ -- SAND Technology Inc. (OTCBB:SNDTF), an international provider of data management software and best practices, today reported a net loss income for the three months ended April 30, 2011 of $1,294,276 on revenues of $1,002,596 compared to a net loss of $1,175,229 on revenues of $966,654 for the three months ended April 30, 2010.
The Company reported a net loss for the nine months ended April 30, 2011 of $1,193,269 on revenues of $5,415,087 compared to a net loss of $771,890 on revenues of $5,376,370 for the nine months ended April 30, 2010.
Cash flows generated from Operating Activities for the three months ended April 30, 2011 amounted to $702,294 compared to cash flows generated from Operating Activities for the three months ended April 30, 2010 of $296,204. Cash flows used in Operating Activities for the nine months ended April 30, 2011 amounted to $69,738 compared to cash flows used in Operating Activities for the nine months ended April 30, 2010 of $405,824. All figures indicated above are in Canadian dollars.
Thomas M. O'Donnell, President and Chief Executive Officer, stated, "A year ago SAND was selling two main product lines, the SAND Analytic Database Server and a suite of products for Information Lifecycle Management. This mix of products was challenging for SAND to sell given our scale and we have now focused on SAND Analytic Database Server sales for improving the performance of Data Warehouses both by replacing them and augmenting existing data warehouse environments.
Deciding to focus on a single line of business was a challenge but it was absolutely necessary. The change has meant that Q3 was a challenging Quarter. In addition, we have more than doubled the productive size of the sales and marketing teams, while replacing all of the existing team. With these changes, SAND's business has yet to reach its stride and inevitably makes our business have peaks and troughs as a small number of transactions make a material impact on our numbers.
I remain encouraged by the activity we see in the field and the results of our continued focus on our core competency, that of highly performant, highly scalable analytic databases. Despite winning in benchmarks against materially larger organizations, we have not turned these wins into revenues and that is the focus of the team going forward. We signed a number of new OEM partners this Quarter. I am certain this is a worthwhile medium-term investment and they will expand both our scale and our revenues. The day-to-day running of the business is much improved and I am pleased to say, despite this Quarter, the future looks bright for SAND."
About SAND Technology
SAND Technology delivers advanced analytics database software for analyzing large amounts of extreme data. SAND's software drives solutions for CRM and Loyalty analytics with products managing vast amounts of big data, driving industry-leading levels of analytic performance and deploying information to thousands of users across the enterprise. SAND has achieved "Certified for SAP NetWeaver" status and SAND Nearline Integration Controller has achieved "Powered by SAP NetWeaver" status. With over 600 customers over five continents and over a dozen countries SAND's technology is leading edge in the analytic database market. SAND Technology has offices in the Canada, the United States, the United Kingdom, Central Europe and Australia.
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 www.sec.gov) and the Canadian securities authorities (filed on SEDAR at 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 and nine-month periods ended April 30, 2011 and 2010 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 and nine-month periods ended April 30, 2011 and 2010. 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 and nine-month periods ended April 30, 2011 and 2010. All figures in the following financial information are in Canadian dollars.
Three months ended April 30, | Nine months ended April 30, | ||||||||||
Results of Operations | 2011 | 2010 | 2011 | 2010 | |||||||
Revenue | $ 1,002,596 | $ 966,654 | $ 5,415,087 | $ 5,376,370 | |||||||
Cost of sales and product support | 284,470 | 331,920 | 894,174 | 979,574 | |||||||
Gross profit | 718,126 | 634,734 | 4,520,913 | 4,396,796 | |||||||
Operating Expenses | |||||||||||
Research and development costs, net | 434,944 | 485,040 | 1,369,193 | 1,412,092 | |||||||
Amortization of capital assets and other assets | 7,757 | 13,014 | 33,588 | 41,916 | |||||||
Selling, general and administrative | 1,428,816 | 1,225,953 | 3,965,594 | 3,434,640 | |||||||
1,871,517 | 1,724,007 | 5,368,375 | 4,888,648 | ||||||||
Income from operations before the undernoted items | (1,153,391) | (1,089,273) | (847,462) | (491,852) | |||||||
Foreign exchange (gain) loss | 51,951 | 4,819 | 74,664 | 33,351 | |||||||
Interest expense | 88,934 | 81,137 | 271,143 | 246,687 | |||||||
140,885 | 85,956 | 345,807 | 280,038 | ||||||||
Net income (loss) and comprehensive income (loss) | $ (1,294,276) | $ (1,175,229) | $ (1,193,269) | $ (771,890) | |||||||
Basic income (loss) per share | $ (0.08) | $ (0.07) | $ (0.07) | $ (0.05) | |||||||
Diluted income (loss) per share | $ (0.08) | $ (0.07) | $ (0.07) | $ (0.05) | |||||||
Basic weighted average number of | |||||||||||
common shares | 16,204,842 | 15,889,620 | 16,204,842 | 15,889,620 | |||||||
Diluted weighted average number of | |||||||||||
common shares | 16,204,842 | 15,889,620 | 16,204,842 | 15,889,620 | |||||||
As at | |||||||||||
As at April 30, | July 31, | ||||||||||
Financial Position | 2011 | 2010 | 2010 | ||||||||
Cash | $ 1,835,109 | $ 745,783 | $ 579,270 | ||||||||
Working Capital (Deficiency) | 287,033 | (1,473,161) | (982,935) | ||||||||
Total Assets | 3,431,051 | 1,583,670 | 2,117,443 | ||||||||
Total Liabilities | 5,578,137 | 4,081,485 | 4,568,107 | ||||||||
Shareholders' Deficiency | (2,147,086) | (2,497,815) | (2,450,663) | ||||||||
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||
Rates of Exchange | 2011 | 2010 | 2011 | 2010 | |||||||
At period end - U.S. dollar | $ 0.9464 | $ 1.0158 | $ 0.9464 | $ 1.0158 | |||||||
Average for the period - U.S. dollar | 0.9740 | 1.0281 | 1.0035 | 1.0522 | |||||||
At period end - U.K. pound | 1.5832 | 1.5484 | 1.5832 | 1.5484 | |||||||
Average for the period - U.K. pound | 1.5798 | 1.5774 | 1.5948 | 1.6845 | |||||||
At period end - Euro | 1.4058 | 1.3456 | 1.4058 | 1.3456 | |||||||
Average for the period - Euro | 1.3622 | 1.3938 | 1.3600 | 1.4977 | |||||||
SOURCE SAND Technology Inc.
