Peter Strom. (Darren Brown, OBJ)

March Networks Corp. saw stronger revenues in both its fourth quarter and full fiscal 2008 year, but costs for the retrofit of some of its transit products had the company seeing red.

The Ottawa-based maker of Internet protocol (IP)-based video surveillance systems said revenues for the full fiscal year were up 7.7 per cent to $94.4 million, but it reported a net loss of $6.5 million or 38 cents per diluted share, compared to a profit of $6 million or 34 cents per share a year earlier.

March Networks's full-year losses from continuing operations before income taxes were $7.1 million, compared to positive earnings of $8.8 million a year earlier, as the company absorbed $3.2 million in charges related to a retrofit program started in the second quarter to "proactively address design issues related to the company's installed base of transit products."

However, CEO Peter Strom said the company had benefited from a more diverse revenue base "outside of (its) largest customer," which is known to be Wal-Mart, as well as from the strengthening of its European presence due to its $28.6-million purchase of Italian rival Cieffe S.p.A. and its subsidiary Insignis Technologies S.r.l.

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

The company said it expected revenues for the upcoming fiscal year to be between $100 million and $115 million, while earnings before interest, taxes, amortization and stock-based compensation expense are anticipated to be $500,000 to $5 million.

For the fourth quarter alone, revenues were up 6.2 per cent to $21.1 million, while net losses widened to $3.1 million or 18 cents per diluted share, from $442,000 or three cents per share a year earlier.

Losses before income taxes and discontinued operations were $4.2 million, compared to $692,000 a year earlier.

AIM listing nixed

In a separate announcement, the company said it was cancelling its listing on London's AIM exchange as part of its cost-cutting measures.

March Networks's said its board had determined the costs related to maintaining the listing were "inappropriate" considering its Canadian-focused shareholder base.

"Due to the relatively low number of the company's shareholders holding shares on the depositary interest register and the low volume of trading in shares on AIM, when compared with the regulatory and financial commitment required to maintain an AIM listing, the board of the company considers it in the best interests of the company to seek a cancellation of its shares from trading on AIM," the company said.

"The relatively low profile of the company on AIM, together with its low level of trading and the costs and inconveniences associated with an AIM listing, result in the board's opinion that such a listing cannot be justified."

However, the company will be keeping its Toronto Stock Exchange listing, and advised AIM shareholders that they could trade their common shares through the TSX after the listing cancellation date.

March Networks's last trading day on the AIM will be July 10.

The company current share volume on the London exchange is 5,500 shares, at 235 pence sterling each.