SOURCE: SAND Technology

March 08, 2005 16:45 ET

SAND Announces Second Quarter Results

Revenues Up 18% Over Previous Quarter

MONTREAL -- (MARKET WIRE) -- March 8, 2005 -- SAND Technology Inc. (NASDAQ: SNDT), an innovator in analytic application infrastructure, today reported its results for the three-month period ended January 31, 2005. The Company recorded a loss for this second operating quarter of fiscal year 2005 of $1,493,903 or ($0.12) per share on revenues of $2,029,750, compared to a loss for its second operating quarter of fiscal year 2004 of$1,357,352 or $0.10 per share on revenues of $1,581,532. By comparison with the previous quarter ended October 31, 2004, revenues increased by 18% and the loss was reduced by 20%.

"Sales are showing improvement on a quarter-over-quarter basis," said Arthur Ritchie, President and Chief Executive Officer of SAND, "and we are optimistic the trend will continue at a steady rate. Changes this fiscal year in the sales management structure in the UK and North America are beginning to bear fruit and the addition of the SAND Searchable Archive to the product mix is accelerating market interest in SAND."

A conference call hosted by Mr. Ritchie will be held on Thursday, March 10th, 2005 at 4:00 p.m. (eastern standard time) to discuss SAND's financial results. Investors and other interested parties may participate in the conference call by dialling (416) 695-9703.

For those who cannot participate in the live call, a replay of the conference will be available at www.sand.com after 7:00 p.m. on the day of the conference and run for one month. Listening to the replay of the call requires Windows Media Player and appropriate hardware.

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, and is traded on NASDAQ under the symbol SNDT. 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 Statement of Operations
(Unaudited)

                                   IN CANADIAN DOLLARS

                    3 Months      6 Months      3 Months      6 Months
                      Ended         Ended         Ended         Ended
                  Jan. 31, 2005 Jan. 31, 2005 Jan. 31, 2004 Jan. 31, 2004
                  ------------- ------------- ------------- -------------

Revenues            $ 2,029,750   $ 3,751,407   $ 1,581,532   $ 2,429,789

Cost of Sales and
 Product Support    $  (523,114)  $  (982,365)  $  (410,086)  $  (799,628)

Research and
 Development Costs  $  (908,985)  $(1,769,311)  $  (916,532)  $(1,800,179)

Amortization of
 capital assets
 and other assets   $   (68,504)  $  (135,486)  $   (56,979)  $  (113,155)

Selling, general
 and administrative
 expenses           $(2,081,265)  $(4,317,394)  $(1,650,589)  $(3,516,903)

Operating Income
 (loss)             $(1,552,118)  $(3,453,149)  $(1,452,654)  $(3,800,076)

Interest Income,
 Net                $    58,215   $    93,546   $    95,302   $   206,725

Net earnings (loss) $(1,493,903)  $(3,359,603)  $(1,357,352)  $(3,593,351)

Earnings (loss)
 per share          $     (0.12)  $     (0.26)  $     (0.10)  $     (0.27)

Weighted average
 number of shares
 outstanding         12,847,842    12,902,221    13,087,458    13,108,335

Contact Information

  • Media:
    Robert Thompson
    SAND Technology
    pr@sand.com
    +(1) 401/862-3538

    Investor Relations:
    de Jong & Associates
    sndt@dejong.org
    +(1) 760/943-9065