Peter Strom. (Darren Brown, OBJ)

March Networks said pre-tax losses for its fiscal 2008 year would be greater than its previous estimate, as the company posted lower-than-expected preliminary revenues in the fourth quarter.

The Ottawa-based maker of digital Internet protocol (IP)-based surveillance systems had in February announced that its pre-tax losses would be between $3 million and $5 million, sending its shares plunging by nearly 30 per cent. Before that, the company had said it would see a profit of between $500,000 and $4.5 million for fiscal 2008.

But now March Networks is saying that it expects a pre-tax loss of approximately $7 million, with fourth-quarter losses from continuing operations before income taxes anticipated to be roughly $4 million.

The company blamed the greater-than-expected losses on higher costs and weaker fourth-quarter revenues, although its sales expectations of $94 million for the year are still within its guidance of $94 million to $103 million.

March Networks said fourth-quarter revenues are expected to be approximately $21 million.

However, the company was more upbeat for the fiscal 2009 year and said it expected to have operating earnings, before interest, taxes, amortization of acquired intangibles and stock-based compensation expense, to be between $500,000 and $5 million.

March Networks also said it was expecting full-year revenues of between $100 million and $115 million.

"We expect 2009 to be an exciting year for the company with a return to profitability, an industry-leading product line and strong international growth," said March Networks CEO Peter Strom in a statement.

In a separate announcement, the company said it would be repurchasing up to one million of its common shares, or roughly 7.24 per cent of March Networks's public float.

The share buyback will start on May 29, 2008 and end on May 28, 2009 or until the company has bought the maximum number of shares permitted under the normal course issuer bid.