Ottawa--June 17, 1997--Plaintree Systems Inc. (Newton, Mass.) announced that, based on current information, it expects revenue for its first quarter of fiscal 1998 will be lower than its revenue for the quarter ended March 31, 1997.
Revenue for the quarter is expected to be in the range of $2 million to $3 million. The company expects the net loss per share for the quarter to be greater than the loss for the previous quarter. The company believes that results for the first quarter will be adversely affected by factors which include substantially lower sales of the company's workgroup switches to its OEM partners and lower than anticipated sales of MSL products. The loss for the quarter will also be adversely affected by a special charge of approximately $1.5 million to write off the value of certain software licenses acquired in prior fiscal years. The company has concluded that the Layer 3 switching features developed for its WaveSwitch 9000 product family will not use the routing software acquired through these licenses.
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