2005 year end resultsOTTAWA, Jun 29, 2005 (Canada NewsWire via COMTEX) --
Today, Plaintree Systems Inc. (Plaintree) announced its 2005 year results.
Product sales increased 33% from $258,739 in 2004 to $345,395 in 2005. Other Revenue for 2005 was $762,397 relating to partnership income. The previous years Other Revenue was $1,231,182, primarily due to the partnership income of $845,730 and a realization of $371,395 from a BIA proposal filed by the Company in fiscal year 2003.
Actual cash used by the Company in operating activities decreased by $118,598 to $653,307 in 2005 from the previous year.
The net loss for fiscal 2005 was $1,977,305 as compared to $710,451 for fiscal 2004, an increase of $1,266,854. Contributing factors to the increased loss include non-cash amortization expense of $694,043 ($255,368 in 2004) associated with the equity component and deferred charges assigned to the Convertible Debentures, increased Sales and Marketing expense of $367,106 and the realization of a gain on Proposal to Creditors of $371,395 in fiscal 2004 which was not repeated in fiscal 2005. "Plaintree is investing in marketing and sales activities while continuing to demonstrate Plaintree's fiscal conservatism in every aspect of the business.," said David Watson CEO. " We look forward to reaping the benefits of this increased sales activity in the near future."
Further information regarding Plaintree's fiscal 2005 results can be found by examining the Company's 2005 annual report and management discussions and analysis report for the year ended March 31, 2005, both located on the Company's website at www.plaintree.com or on SEDAR at www.sedar.com by searching Plaintree Systems Inc.