March Networks Announces Record Revenues and Strong Earnings in Third Quarter of Fiscal 2012

OTTAWA, March 6, 2012 /PRNewswire/ - March Networks^®  (TSX: MN), a global provider of intelligent IP video solutions, today announced financial results for the fiscal quarter and nine months ended January 31, 2012. All figures are in US dollars and in accordance with International Financial Reporting Standards ("IFRS") unless otherwise specified.

The Company's third quarter fiscal 2012 revenue of $32.4 million represented a 57% increase relative to revenue of $20.6 million in the third quarter of fiscal 2011 and grew 48% as compared to the second quarter fiscal 2012. Revenue for the first nine months of fiscal 2012 of $76.7 million increased by 5% relative to the first nine months of fiscal 2011.

Net earnings for the third quarter of fiscal 2012 were $1.6 million or $0.09 per common share as compared to a net loss of $2.5 million or $0.14 per share in the third quarter of fiscal 2011. Net loss for the nine-month period ended January 31, 2012 was $1.6 million or $0.09 per common share as compared to a net loss of $1.2 million or $0.07 per share in the nine-month period ended January 31, 2011.

The Company's cash and short-term investment position of $39.1 million at January 31, 2012 increased by $592,000 as compared to January 31, 2011 but declined by $6.8 million relative to $45.8 million at April 30, 2011.

"We are pleased with the overall business activity in the third quarter of fiscal 2012," said Peter Strom, President and CEO of March Networks. "Our record revenues in the third quarter reflect strong order intake from our large customers in the Americas and allowed the Company to build backlog in the quarter".

"The Company's believes that its fiscal 2012 revenue may be flat to slightly above fiscal 2011, however, the Company does not expect to generate net earnings in fiscal 2012", said Ken Taylor CFO of March Networks.

Update on Definitive Agreement to be Acquired by Infinova

The Company announced on December 9, 2011 that it had entered into a definitive arrangement agreement pursuant to which Infinova (Canada) Ltd. ("Infinova"), an indirect, wholly-owned Canadian subsidiary of Shenzhen Infinova Ltd., will acquire through a statutory plan of arrangement, all of the issued and outstanding shares of the Company in a $5.00 per share all cash transaction. The Arrangement is subject to, among other things, approval from four regulatory agencies in the People's Republic of China, the approval of the shareholders of Shenzhen Infinova and the approvals of the shareholders of March Networks and the Ontario Superior Court of Justice (Commercial List) (the "Court"). Shenzhen Infinova has obtained the approval of its shareholders. In addition, Shenzhen Infinova has received the necessary approvals from the Shenzhen Development and Reform Commission and the Shenzhen Science, Industry, Trade and Information Technology Commission, with approvals from China's Foreign Currency Administration Bureau and the China Securities Regulatory Commission remaining outstanding.

March Networks would like to remind its shareholders that, pursuant to an interim order of the Court, the special meeting of shareholders to approve the Arrangement (the "Special Meeting") will be held on March 20, 2012 at 9:30 a.m. (Eastern Daylight Time) at the Brookstreet Hotel, 525 Legget Drive, Ottawa (Kanata), Ontario. Shareholders are also reminded that whether or not they intend to attend the Special Meeting, proxies need to be completed and returned, or procedures for internet or telephone voting need to be followed, before 5:00 p.m. (Eastern Daylight Time) on March 16, 2012 (or the date that is two business days immediately prior to the date set for any adjournment or postponement of the Special Meeting). Further details are contained in the management proxy circular of March Networks and related materials prepared in connection with the Special Meeting, which were mailed to shareholders and filed on SEDAR at www.sedar.com between February 14 and February 16, 2012.

The company will discuss the financial results on a conference call and webcast on Wednesday, March 7, 2012 at 8:30 a.m. EST (1:30 p.m. UTC). The conference call may be accessed by dialing 1-877-974-0445 (North America) or +1 416-644-3415.The conference call webcast can be accessed at: http://www.newswire.ca/en/webcast/detail/922197/984877

A replay of the conference call will be available from March 7, 2012 at 10:30 a.m. EST until March 14, 2012 at 11:59 p.m. EDT. The replay can be accessed at 1-877-289-8525 or +1 416-640-1917 and the passcode is 4516094#.

About March Networks
March Networks^® (TSX:MN) is a leading provider of intelligent IP video solutions. For more than a decade, the company has helped some of the world's largest commercial and government organizations transition from traditional CCTV to advanced surveillance technologies used for security, loss prevention, risk mitigation and operational efficiency. Its highly scalable and easy to use Command^™ video management platform incorporates a web-based client interface to enable rapid system deployment and complete system control. It is complemented by the company's portfolio of high-definition IP cameras, encoders, video analytics and hybrid recorders, as well as outstanding professional and managed services. March Networks systems are delivered through an extensive distribution and partner network in more than 50 countries. For more information, please visit www.marchnetworks.com.

*MARCH NETWORKS, March Networks Command and the MARCH NETWORKS logo are trademarks of March Networks Corporation. All other trademarks are the property of their respective owners.

SOURCE MARCH NETWORKS CORPORATION