March Networks posts Q3 profit of US$1.6M
OTTAWA - Record revenue helped advanced surveillance technology provider March Networks (TSX:MN) reverse a year-earlier loss and post a profit in its fiscal 2012 third quarter.
The Ottawa-based firm, which agreed in December to a takeover by a subsidiary of a Chinese company, said it earned net income of US$1.6 million or nine cents per diluted share in the three months ended Jan. 31. That compared with a loss of US$2.5 million or 14 cents per diluted share in the same year-earlier period.
Revenue in the quarter soared to US$32.4 million, up 57 per cent from $20.6 million in the prior-year period.
"We are pleased with the overall business activity in the third quarter of fiscal 2012," president and CEO Peter Strom said in a release.
"Our record revenues in the third quarter reflect strong order intake from our large customers in the Americas and allowed the company to build backlog in the quarter."
However, Strom said the company expects revenue to remain flat to slightly above 2011 levels and to post a loss for the year as a whole.
In December, March Networks said it had agreed to a takeover by Infinova (Canada) Ltd., a subsidiary of Shenzhen Infinova Ltd, a company listed on the Shenzhen Stock Exchange, for C$5 per share in a deal that values the company at some $90 million.
A special meeting of shareholders to approve the deal has been scheduled for March 20 in Ottawa.
The company's stock closed Tuesday at $4.93 on the Toronto Stock Exchange.
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