Linmor Reports Q4 Loss, Lays Off

OTTAWA -- LINMOR Inc. (TSX:LIR) the Linux-powered network performance management and service assurance solution provider, announced today preliminary results for the quarter ended March 31, 2003. Revenue for the fourth quarter of fiscal 2003 is expected to be approximately $130,000. The loss for the quarter is expected to be approximately $1.6 million with quarter-end cash and cash equivalents of about $1.5 million. In response to the revenue results of the fourth quarter, the Company also announced a 19% across-the-board reduction in staff. This restructuring is expected to decrease annual operating expenses by $855,000 and will result in a one-time restructuring charge in the first quarter of fiscal 2004 of approximately $245,000. "With our quarter-end cash balance and the infusion from the transaction announced on April 2nd, the Company now has reserves of $3.5 million, and the staff reductions will extend this runway," said James Cragg, President and Chief Executive Officer of LINMOR Inc. "We are realigning our sales efforts to regain the lost ground from this quarter. We all know what a difficult market this is, but in spite of this quarter's set-back, we are fighting hard for success." Through the staff reductions, LINMOR's organizational structure has been significantly streamlined. As a result, LINMOR Inc.'s officers are now James Cragg, Chief Executive Officer; Bogdan Materna, Chief Technology Officer; and Sabina Dawson, Chief Financial Officer. Linmor Technologies