Company News — Descartes Systems Group Inc.

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Descartes Systems swings to Q1 profit of US$500,000 from year-ago loss

May 25, 2005

WATERLOO, Ont. (CP) - The Descartes Systems Group Inc., a specialist in transport logistics, has swung to a record first-quarter profit of $500,000 US from a year-earlier loss of $28.9 million US after major cost-cutting.

Earnings for the quarter ended April 30 amounted to one cent per share, compared with a loss of 71 cents per share a year ago, the Waterloo-based company (TSX:DSG) reported Wednesday.

While revenue declined to $11.3 million US from $13.3 million, total expenses plunged to $10.8 million US from $42.2 million. The company reports in U.S. dollars.

"This reduction in expenses is principally a consequence of Descartes' restructuring initiative started in May 2004, the company said in a release.

A year ago, Descartes fired its CEO, announced 135 job cuts amid accounting problems and recorded an $18-million writedown.

© The Canadian Press 2005

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