Plaintree Systems Inc Another Profitable Quarter for Q2-2012

OTTAWA, Ontario--()--Plaintree Systems Inc. (Plaintree, traded on CNSX under the symbol NPT).

Q2-2012 Results

Plaintree announced today that it has released its unaudited interim condensed consolidated financial statements and related management discussion and analysis for the six months ended September 30, 2011.

During the second quarter of fiscal 2012, Plaintree realized revenues of $5,036,449 and net profitability of $616,849.

For the first two quarters of this fiscal year, sales totaled $7,711,183 compared to $6,872,350 for the same period in fiscal 2011 and a net income of $529,240, compared $1,388,272 for first six months of fiscal 2011. The decreased net income in this period resulted from a lower cost of direct costs (i.e. materials) in the prior period (early fiscal 2011) due to a write-down of inventories (reflected in seasonally lower market prices) and increased operational costs during fiscal 2012.

“The Company relocated to a larger 135,000 sq/ft manufacturing facility around Christmas last year and a lot of production time over the next six months was spent organizing and setting up in the new location,” announced David Watson, Plaintree CEO. “Also, the creation of Arnprior Fire Trucks Corp. has required a large investment in manpower and cash as we get it established. Both these investments affected profitability over the first two quarters of this year.”

The Company has the two former manufacturing plants for sale.

Basic (loss) earnings per share after deduction for accrued dividends was $(0.02) and $0.05 for the respective first six months of fiscals 2012 and 2011.

The Company adopted International Financial Standards (“IFRS”) effective April 1, 2011.

For more information on these results, please refer to Plaintree’s annual 2011 financial statements together with the related Management’s Discussion and Analysis report, copies of which can be obtained from the Company’s website at www.plaintree.com and/or under Plaintree’s name at www.sedar.com.

About Plaintree Systems

Plaintree has two diversified product lines consisting of Specialty Structures and Electronics.

The Specialty Structures Division includes the former Triodetic Group with over 40 years of experience, is a design/build manufacturer of steel, aluminum and stainless steel specialty structures such as commercial domes, free form structures, barrel vaults, space frames and industrial dome coverings, and the newly formed Arnprior Fire Trucks Corp., a manufacturer of high end fire and emergency vehicles.

The Electronics Division includes the legacy Hypernetics and Plaintree free space optics (FSO) businesses.

Plaintree’s FSO systems transmit data at high speeds using beams of light instead of traditional radio frequency which can suffer from congestion. Hypernetics was established in 1972 and is a manufacturer of avionic components for various applications including aircraft antiskid braking, aircraft instrument indicators, solenoids, high purity valves and permanent magnet alternators.

Plaintree’s shares are traded under the symbol “NPT”. Shareholders and Investors can access Company information on CNSX’s website and receive full Company disclosure monthly. For more information on Plaintree or to receive stock quotes, complete with trading summaries, bid size and ask price, brokerage house participation, insider reports, news releases, disclosure information, and CNSX and SEDAR filings, visit the CNSX website at www.cnq.ca or the Company’s website at www.plaintree.com.

Plaintree is publicly traded in Canada on the CNSX (NPT) with 12,925,253 common shares and 18,325 class A preferred shares outstanding.

This press release may include statements that are forward-looking and based on current expectations. The actual results of the company may differ materially from current expectations. The business of the company is subject to many risks and uncertainties, including changes in markets for the company’s products, delays in product development and introduction to manufacturing and intense competition. For a more detailed discussion of the risks and uncertainties related to the company’s business, please refer to documents filed by the company with the Canadian regulatory authorities, including the annual report of the Company for the fiscal year ended March 31, 2011 and related management discussion and analysis.

Canadian National Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contacts

Plaintree Systems Inc.
Anna Pelkey, 613-623-3434 x2261

Contacts

Plaintree Systems Inc.
Anna Pelkey, 613-623-3434 x2261