SAND Technology
OTC Bulletin Board : SNDTF

SAND Technology

June 12, 2006 17:27 ET

SAND Announces Third Quarter Results

MONTREAL--(CCNMatthews - June 12, 2006) - SAND Technology Inc. (OTCBB: SNDTF), an innovator in analytic application infrastructure, today reported results for the three-month period ended April 30, 2006. The Company reported a loss for the third operating quarter of fiscal year 2006 of $868,526, or ($0.07) per share on revenues of $1,559,307. The net loss has been reduced by 18% in comparison with the previous quarter. In comparison to the third quarter of the previous fiscal year, the loss has been reduced by 51%.

"Our Third Quarter reflects improved results over our last quarter," said Arthur Ritchie, CEO. "Although we were hoping to report even stronger revenues, we remain very encouraged by the level of interest and pipeline for our SAND/DNA products in general and our new SAND/DNA for SAP BI offering. The marketplace is responding well to SAND's unique ability to improve enterprises capability to meet demanding service levels despite exponential data growth," 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
Apr. 30, 2006 July 31, 2005
------------- -------------
Assets
Current Assets
Cash and cash equivalents $ 2,454,343 $ 5,615,912
Accounts Receivable, Net $ 1,687,862 $ 1,561,613
Prepaid Expenses $ 171,512 $ 127,731
------------- -------------
$ 4,313,717 $ 7,305,256

Capital Assets, Net $ 241,580 $ 296,735
Other Assets, Net $ 249,405 $ 332,540
------------- -------------
$ 4,804,702 $ 7,934,531
============= =============

Liabilities
Current Liabilities
Accounts Payable and Accrued
Liabilities $ 1,283,063 $ 1,485,597
Deferred Revenue $ 1,268,099 $ 1,447,992
Deferred Credits $ 144,241 $ 166,243
------------- -------------
$ 2,695,403 $ 3,099,832
------------- -------------

Shareholders' equity
Common Stock $ 38,024,756 $ 38,024,756
Contributed Surplus $ 74,000 $ 74,000
Deficit $( 35,989,457) $( 33,264,057)
------------- -------------
$ 2,109,299 $ 4,834,699
------------- -------------
$ 4,804,702 $ 7,934,531
============= =============

SAND TECHNOLOGY INC.

Consolidated Statement of Operations
(Unaudited)

IN CANADIAN DOLLARS
-------------------
3 Months 9 Months 3 Months 9 Months
Ended Ended Ended Ended
Apr. 30, Apr. 30, Apr. 30, Apr. 30,
2006 2006 2005 2005
------------ ------------ ------------ -------------

Revenues $ 1,559,307 $ 4,330,833 $ 1,279,434 $ 5,030,841
------------ ------------ ------------ -------------

Operating expenses
Cost of Sales and
Product Support $ (486,258) $(1,155,066) $ (346,095) $ (1,328,460)
Research and
Development Costs $ (517,598) $(1,780,439) $ (704,663) $ (2,473,974)
Amortization of
capital assets
and acquired
technology $ (56,350) $ (196,235) $ (71,800) $ (207,286)
Selling, general
and
administrative
expenses $(1,382,098) $(3,975,418) $(1,973,532) $ (6,290,926)

------------ ------------ ------------ -------------
Total operating
expense $(2,442,304) $(7,107,158) $(3,096,090) $(10,300,646)
------------ ----------- ------------ -------------

Operating Income
(Loss) $ (882,997) $(2,776,325) $(1,816,656) $ (5,269,805)

Interest Income,
Net $ 14,471 $ 50,925 $ 38,383 $ 131,929
------------ ------------ ------------ -------------

Net Earnings
(Loss) $ (868,526) $(2,725,400) $(1,778,273) $ (5,137,876)
============ ============ ============ =============

Earnings (Loss)
per share $ (0.07) $ (0.21) $ (0.14) $ (0.40)

Weighted average
number of shares
outstanding 12,818,189 12,818,189 12,818,189 12,874,725


Contact Information

  • Media:
    Jerry Shattner
    Sand Technology
    pr@sand.com
    +(1) 514 906-4173
    or
    Investor Relations:
    de Jong & Associates
    sndt@dejong.org
    +(1) 760 943-9065