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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO SECTION 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Month Ended Commission file number
December 31, 2000 0-14884
Exact name of the registrant as specified in its charter
SAND TECHNOLOGY INC.
(formerly Sand Technology Systems International Inc.)
Jurisdiction of Incorporation
CANADA
Address of principal executive offices:
4141 SHERBROOKE STREET WEST, SUITE 410
WESTMOUNT, QUEBEC, CANADA H3Z 1B8
TELEPHONE (514) 939-3477
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F ______
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes _____ No X
If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- N/A .
Total number of pages is 10.
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Sand Technology Inc. (the "Company") incorporates this Form
6-K Report by reference into the Prospectus contained in the Company's
Registration Statement on Form F-3 (333-51014).
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[GRAPHIC OMITTED] Press contacts:
de Jong & Associates
PRESS RELEASE Tel: (760) 943-9065, [email protected]
SAND TECHNOLOGY INC. REPORTS FIRST QUARTER RESULTS
Nucleus sales reach $2.8 Million in quarter
MONTREAL, CANADA, DECEMBER 14, 2000: SAND TECHNOLOGY INC. (NASDAQ: SNDT) today
reported a net loss for its fiscal quarter ended October 31, 2000 of $(857,451)
or $(0.09) per share on sales of $2,848,954 as compared to earnings of
$1,701,761 or $0.20 per share on sales of $573,889 for the first quarter ended
October 31, 1999. Losses from operations were $(615,152) for the first quarter
of fiscal 2001 as compared to earnings of $1,299,058 for the first quarter of
fiscal 2000. It is to be noted that the financial impact of the sale of the
Company's stake in Hitachi Data Systems was reflected in the first quarter
results of fiscal 2000.
Arthur Ritchie, President and Chief Executive Officer, explained that "the
ongoing increase in the acceptance of Nucleus products in the market place and
the much enhanced receptiveness to Sand's marketing strategies are most
gratifying."
Mr. Ritchie noted "that Sand had more than quadrupled its sales revenues over
the same quarter last year".
Mr. Ritchie concluded by emphasizing that Sand continues to ramp up its sales
and support organization to further strengthen its foothold in the market place.
ABOUT SAND TECHNOLOGY
Sand Technology, with headquarters in Montreal, Canada and offices in the United
Kingdom and the United States, provides performance, scalable software solutions
for data mining, data marts, data warehouses and online analytical processing
(OLAP). Sand's Nucleus product suite brings patented technology to the business
user, empowering more timely and accurate decision making. Nucleus is being used
in the Retail, Finance, Healthcare, Transportation, Telecommunication,
Manufacturing, Government and Insurance sectors to support strategic corporate
initiatives, including e-Business; CRM (Customer Relationship Management);
SAP(TM) reporting; SCM (Supply Chain Management); risk analysis and management;
new business; product trend and profitability analysis; fraud detection;
emerging markets; competitive analysis, and quality control. Sand Technology has
commercial relationships with IBM, Oracle, Compaq Computer Corporation,
Microsoft, Brio Technology and Information Builders. For more information, visit
www.sandtechnology.com
All Rights Reserved. Nucleus, Nucleus Server, N: VECTOR and MPSO are registered
trademarks of Sand Technology Inc. and Nucleus Exploration Mart, Nucleus
Exploration Warehouse, Nucleus Virtual Database (VDB), NUCLEUS POWERED! and
Nucleus E! are trademarks of Sand Technology Inc. Other trademarks are the
property of their respective owners.
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Forward looking statements made in this release are based on reasonable
assumptions. However, some assumptions may not materialize and unanticipated
events may occur which could cause actual results to differ materially from
those forecasted. Competitive pressures, availability and cost competitiveness
of supplies or competing products, timing of significant orders, market
acceptance of the Sand Nucleus product suite including Nucleus Exploration, and
other risks and uncertainties described in Sand's reports to Securities and
Exchange Commission are important factors which could cause actual results to
differ materially from those projected.
SAND TECHNOLOGY INC.
Consolidated Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
IN CANADIAN DOLLARS
-----------------------------------------
3 Months Ended 3 Months Ended
October 31, 2000 October 31, 1999
<S> <C> <C>
Net Sales $2,848,954 $573,889
(Loss) earnings from operations ($ 615,152) ($2,493,238)
Income from Affiliate - $283,510
Net (loss) earnings ($857,451) $1,701,761
(Loss) earnings per share ($0.09) $0.20
Weighted average number of shares 9,719,162 8,522,873
outstanding
</TABLE>
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SAND TECHNOLOGY INC.
PART 1. FINANCIAL INFORMATION
CONSOLIDATED BALANCE SHEET AS AT OCTOBER 31, 2000
with Comparative Figures as at July 31, 2000
-------------------------------------------------
(Stated in Canadian Dollars)
<TABLE>
<CAPTION>
October 31 July 31
2000 2000
ASSETS UNAUDITED AUDITED
<S> <C> <C>
Current
Cash $ 1,951,954 $ 664,918
Short term investments (NOTE 4) 494,010 1,722,194
Accounts receivable
Trade 5,000,203 4,351,788
Loan bearing interest 100,000 100,000
Inventory 43,665 43,100
Prepaid expenses and other 155,264 114,543
TOTAL CURRENT ASSETS 7,745,096 6,996,543
Long Term Assets
Prepaid Royalties 1,407,651 1,608,744
Fixed assets and improvements 157,188 140,104
Other assets 289,218 325,370
TOTAL LONG TERM ASSETS 1,854,057 2,074,218
TOTAL ASSETS $ 9,599,153 $ 9,070,761
------------- -----------
------------- -----------
LIABILITIES
Current
Accounts payable & accrued liabilities $ 1,921,801 $ 1,622,739
Deferred Revenue 494,219 382,036
Current portion of balance of purchase price 517,300 517,300
TOTAL CURRENT LIABILITIES 2,933,320 2,522,075
SHAREHOLDER'S EQUITY
Common stock - Authorized 13,430,346 12,455,748
Retained earnings at end of period (6,764,513) (5,907,062)
------------- -----------
TOTAL SHAREHOLDER'S EQUITY 6,665,833 6,548,686
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TOTAL LIABILITY & SHAREHOLDERS EQUITY $ 9,599,153 $ 9,070,761
------------- -----------
------------- -----------
Exchange Rate as at Balance Sheet Date $ 0.65 $ 0.68
See Accompanying Notes to Consolidated Financial Statements
</TABLE>
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SAND TECHNOLOGY INC.
CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT
FOR THE PERIODS ENDED OCTOBER 31, 2000
AND OCTOBER 31, 1999
------------------------------------------------
(Stated in Canadian Dollars)
<TABLE>
<CAPTION>
3 mths ended 3 mths ended
Oct. 31, 2000 Oct. 31, 1999
UNAUDITED UNAUDITED
<S> <C> <C>
Net Sales $ 2,848,954 $ 573,889
Research & development
costs (994,033) (1,234,238)
Selling general &
admin. expenses (1,930,104) (1,465,005)
Cost of sales (541,264) (369,473)
Net Interest/Investment expense 1,295 1,589
---------- ----------
Income from operations (615,152) (2,493,238)
---------- ----------
Foreign exchange (loss) Earnings (242,299) 119,193
Profits on sale of affiliated
company - 3,792,296
Equity earnings of affiliated company - 283,510
Net income before
income taxes (857,451) 1,701,761
Income taxes (Note 3) - -
Net Earnings (857,451) 1,701,761
Retained earnings
(Deficit) at
beginning of period (5,907,062) (3,040,155)
---------- ----------
Retained earnings
(Deficit) at end of
period (6,764,513) (1,338,394)
---------- ----------
---------- ----------
Earnings (Loss) per Share $ (0.09) $ 0.20
---------- ----------
---------- ----------
Weighted average no.
of shares outstanding 9,719,162 8,522,873
---------- ----------
---------- ----------
</TABLE>
($1 = US $0.67 - average for the 3 months ended Oct 31, 2000)
($1 = US $0.68 - average for the 3 months ended Oct 31, 1999)
See accompanying Notes to Consolidated Financial Statements
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SAND TECHNOLOGY INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED OCTOBER 31, 2000
AND OCTOBER 31, 1999
-----------------------------------------------------------
(Stated in Canadian Dollars)
<TABLE>
<CAPTION>
3 mths ended 3 mths ended
Oct. 31, 2000 Oct. 31, 1999
UNAUDITED UNAUDITED
<S> <C> <C>
Cash provided from (used for):
Operating activities
Net income for the period $ (857,451) $1,701,761
Non-cash items
Decrease in pre-paid Royalties 201,093 189,167
Depreciation of equipment 28,894 23,522
Depreciation of other assets 36,152
Equity earnings in affiliate company - (283,510)
Profit on sale of affiliate company (3,792,296)
Net change in non cash
Working capital balances (337,930) (785,250)
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(929,242) 4,348,870
Financing activities
Issue of common shares 921,889 -
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921,889
Investing activities
Net (increase) decrease in short-term investment 1,228,184 -
Proceeds on sale of affiliated company - 7,295,476
Purchase of equipment & improvements (45,978) -
Decrease (increase) in other assets - 36,152
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1,182,206 36,152
Net cash inflow (outflow) 1,174,853 4,385,022
Cash & cash equivalent
beginning of Period 664,918 1,009,518
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Cash & cash equivalent
end of Period 1,839,771 5,394,540
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</TABLE>
($1 = US $0.67 - average for the 3 months ended Oct 31, 2000)
($1 = US $0.68 - average for the 3 months ended Oct 31, 1999)
See accompanying Notes to Consolidated Financial Statements
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SAND TECHNOLOGY INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED OCTOBER 31, 2000
AND OCTOBER 31, 1999
(Continued)
------------------------------------------------------
(Stated in Canadian Dollars)
<TABLE>
<CAPTION>
3 mths ended 3 mths ended
Oct. 31, 2000 Oct. 31, 1999
UNAUDITED UNAUDITED
<S> <C> <C>
NET CHANGE IN NON-CASH WORKING CAPITAL ITEMS
Decrease (Increase) in current assets
Accounts Receivable (648,415) (551,065)
Inventories (565) 657
Prepaid expenses (40,721) (176,671)
Increase (Decrease) in current liabilities
Accounts payable & accrued liabilities 299,062 (59,031)
Deferred Revenue 112,183 860
---------- -----------
Net change in non-cash working
Capital items (278,456) (785,250)
---------- -----------
</TABLE>
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SAND TECHNOLOGY INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
October 31, 2000 UNAUDITED
($1 = US $0.67 - average for the 3 months ended Oct 31, 2000)
($1 = US $0.68 - average for the 3 months ended Oct 31, 1999)
The following notes should be read in conjunction with the notes accompanying
the audited financial statements for the year ended July 31, 2000.
Note 1
------
Management is of the opinion that all necessary adjustments have been
made in order to present fairly the results for the three month period ended
October 31, 2000 and the three month period ended October 31, 1999.
Note 2
------
Results of operations for the three month period ended October 31, 2000
may not be indicative of results for the year ending July 31, 2001.
Note 3
------
The provision for income tax has been offset by the benefit of prior
years' tax losses.
Note 4
------
Short term investments are valued at the lower of cost or current fair
market value (if the difference is significant).
Note 5 Class A common stock
------ --------------------
Authorized
An unlimited number of Class A
Common shares without par value
Issued and outstanding:
At July 31, 2000 9,627,145 $12,455,748
At October 31, 2000 9,883,813 $13,430,346
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SAND TECHNOLOGY INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SAND TECHNOLOGY INC.
/S/ ARTHUR G. RICHIE
--------------------------------
December 15, 2000 Arthur G. Ritchie
Chairman of the Board, President
and Chief Executive Officer
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