Trio issues financial results

Published: November 27th, 2009

Three Canadian network-related companies issued quarterly results that indicate the strengths and weaknesses of the economy.

Ottawa’s March Networks Corp., which sells IP video surveillance systems in a number of countries, said it lost $1 million in its second quarter after revenues dropped 24 per cent compared to the same period a year ago.

The company said it pulled in $21.4 million in revenue for the quarter that ended Oct. 31. On a year-to-date basis, the Company's revenue of $45.4 million declined by 19 per cent as compared to revenue of $56.1 million in the first six months of fiscal 2009.

March Networks recorded non-GAAP operating earnings of $43,000 in the second quarter of fiscal 2010, representing a decline of $957,000 relative to the non-GAAP operating earnings of $1.0 million in the second quarter of fiscal 2009. Non-GAAP operating earnings during the first six months of fiscal 2010 improved by $664,000 to $496,000 from the non-GAAP operating loss of $168,000 incurred in the first six months of fiscal 2009.

“The fundamentals of the business are sound, as evidenced by improved gross margin and lower operating expenses, so we expect improved profitability once revenue levels recover,” CEO and president Peter Strom said in a news release.

Radiant Communications Corp., a Vancouver-based broadband service provider with locations across the country, reported net income for the third quarter ending Sept. 30 was $115,178 after revenues increased 22.5 per cent to $7.7 million over the same period a year ago. That was a 4.1 per cent increase over the second quarter of this year.

Radiant’s year to date revenue of $22.3 million increased by 24.5, over the same three quarters a year ago.

It attributed the quarter’s success to an unnamed major customer adding several locations, and increased subscriptions to its hosted Micrsoft Exchange service.

Finally, Montreal’s Redknee Solutions Inc., which makes billing software and services for communications service providers, said that for the fiscal year that ended Sept. 30 it totaled net income of $3.3 million, compared to a loss of $4.4 million for same the 12 month period a year ago.

Revenue for the year grew to $53.3 million, up from $50.7 million in fiscal 2008, gross margin increased to 78 per cent from 70 per cent.

It also scored a EBITDA profit (earnings before interest, taxes, depreciation and amortization) of $6.5 million, compared to a loss of $4.2 million the year before.


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