SANZ Reports Revenue, Earnings Drop

Revenue for the quarter was $13.3 million, down from the $15.2 million in the comparable quarter last year. Bob Ogden, CFO of the Englewood, Colo., solution provider, said in the company's earnings call that the second quarter results were affected by a $4.5 million order from a Federal agency, which was delayed until the third quarter.

Gross margins for the quarter, however, grew by about $200,000, thanks to increased professional services revenue and an increase in sales of SANZ' EarthWhere software for data provisioning in the geotechnology market.

Ogden said in the past six months SANZ' consulting and engineering services in the Federal sector grew 100 percent, and its maintenance services increases 41 percent, compared to the same six-month period in 2004.

John Jenkins, SANZ CEO, said that he expects the solution provider's storage solutions business to be cash-flow positive by the end of the current quarter, due in big part to the increase in its services business.