SOURCE: SAND Technology

March 07, 2006 17:19 ET

SAND Announces Second Quarter Results

MONTREAL -- (MARKET WIRE) -- March 7, 2006 -- SAND Technology Inc. (OTC BB: SNDTF), an innovator in analytic application infrastructure, today reported results for the three-month period ended January 31, 2006. The Company reported a loss for the second operating quarter of fiscal year 2006 of $1,057,813, or ($0.08) per share on revenues of $1,240,845. Although the net loss has increased in comparison with the previous quarter, when you compare with the second quarter of 2005, the loss has been reduced by almost 30%.

"Although our Second Quarter yielded less revenue than our previous quarter, it in fact represented a turning point in SAND's market acceptance," said Arthur Ritchie, CEO. "Our roll-out of the SAND Dynamic Nearline Architecture (SAND/DNA) was orchestrated during the Quarter, and it has been met with enthusiasm by industry analysts, customers, and prospects. More important, late in the quarter we achieved SAP certification for our SAND/DNA Access product as part of SAP BW's nearline architecture, and began initial customer installs early in our Third Quarter. We believe this exciting capability for SAP BW customers will contribute significant revenue to our results over the rest of Fiscal 2006 and beyond," added Ritchie.

About SAND Technology®

SAND Technology provides organizations worldwide with a unique vantage point from which to survey the competitive landscape. SAND's advanced analytic data management products empower users with a better understanding of their business environment through better access to their business data.

SAND Technology-based solutions include CRM analytics, financial analysis, regulatory compliance and specialized Business Intelligence applications for government and security, healthcare, telecommunications, financial services, retail and other business sectors.

SAND Technology has offices in the United States, Canada, the United Kingdom and Central Europe. For more information, visit www.sand.com

All Rights Reserved. SAND Technology and Nucleus are registered trademarks, and SAND Analytic Server, SAND Searchable Archive, See What's on the Horizon, analytics @ the speed of business, and all related SAND- and Nucleus-based marks and designs, are trademarks of SAND Technology Inc. Other trademarks are the property of their respective owners.

Certain statements contained in this press release are "forward-looking statements" within the meaning of the United States Securities Act of 1933 and of the United States Securities Exchange Act of 1934. 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 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. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. 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.


                              SAND TECHNOLOGY INC.

Consolidated Balance Sheet
(Unaudited)

                                              IN CANADIAN DOLLARS
                                              -------------------

                                               As at           As at
                                           Jan. 31, 2006    July 31, 2005
                                           -------------    -------------
Assets
Current Assets
   Cash and cash equivalents                  $3,176,427       $5,615,912
   Accounts Receivable, Net                   $1,556,621       $1,561,613
   Prepaid Expenses                             $201,918         $127,731
                                            ------------     ------------
                                              $4,934,966       $7,305,256

Capital Assets, Net                             $262,352         $296,735
Other Assets, Net                               $277,116         $332,540
                                            ------------     ------------
                                              $5,474,434       $7,934,531
                                            ============     ============

Liabilities
Current Liabilities
   Accounts Payable and Accrued
    Liabilities                               $1,093,587       $1,485,597
   Deferred Revenue                           $1,251,447       $1,447,992
   Deferred Credits                             $151,575         $166,243
                                            ------------     ------------
                                              $2,496,609       $3,099,832
                                            ------------     ------------

Shareholders' equity
   Common Stock                              $38,024,756      $38,024,756
   Contributed Surplus                           $74,000          $74,000
   Deficit                                  $(35,120,931)    $(33,264,057)
                                            ------------     ------------
                                              $2,977,825       $4,834,699
                                            ------------     ------------
                                              $5,474,434       $7,934,531
                                            ============     ============



                             SAND TECHNOLOGY INC.

Consolidated Statement of Operations
(Unaudited)

                                       IN CANADIAN DOLLARS

                         3 Months     6 Months     3 Months     6 Months
                           Ended        Ended        Ended        Ended
                          Jan. 31,     Jan. 31,     Jan. 31,     Jan. 31,
                            2006         2006         2005         2005
                        -----------  -----------  -----------  -----------
Revenues                $ 1,240,485  $ 2,771,526  $ 2,029,750  $ 3,751,407
                        -----------  -----------  -----------  -----------

Operating expenses
Cost of Sales and
 Product Support        $  (337,101) $  (668,808) $  (523,114) $  (982,365)
Research and Development
 Costs                  $  (619,729) $(1,262,841) $  (908,985) $(1,769,311)
Amortization of capital
 assets and acquired
 technology             $   (68,564) $  (139,885) $   (68,504) $  (135,486)
Selling, general and
 administrative
 expenses               $(1,289,600) $(2,593,320) $(2,081,265) $(4,317,394)

                        -----------  -----------  -----------  -----------
Total operating expense $(2,314,994) $(4,664,854) $(3,581,868) $(7,204,556)
                        -----------  -----------  -----------  -----------

Operating Income (Loss) $(1,074,509) $(1,893,328) $(1,552,118) $(3,453,149)

Interest Income, Net    $    16,696  $    36,454  $    58,215  $    93,546
                        -----------  -----------  -----------  -----------

Net Earnings (Loss)     $(1,057,813) $(1,856,874) $(1,493,903) $(3,359,603)
                        ===========  ===========  ===========  ===========
Earnings (Loss) per
 share                       ($0.08)      ($0.14)      ($0.12)      ($0.26)

Weighted average number
 of shares outstanding   12,818,189   12,818,189   12,847,842   12,902,221

Contact Information

  • Media:
    Jerry Shattner
    Sand Technology
    Email Contact
    +(1) 514 906-4173

    Investor Relations:
    de Jong & Associates,
    Email Contact
    +(1) 760/943-9065