CAROLIAN SYSTEMS SEES LOWER FISCAL 1987 PROFIT
<Carolian Systems International Inc>
said it anticipates profit for fiscal 1987 ending June 30 will
be lower than fiscal 1986 earnings of 410,000 dlrs, despite an
expected revenue increase of 37 pct to more than 3.5 mln dlrs.
    After an extraordinary expense associated with the
December, 1986 withdrawal of a planned common share offering,
"we expect to be modestly profitable for the year, but below the
410,000 dlrs earned in fiscal 1986," the company said.
    Carolian previously reported fiscal six month profit of
12,933 dlrs, excluding an extraordinary loss of 17,210 dlrs,
compared to earnings of 69,829 dlrs in the prior year.
    The company said it anticipated fiscal 1987 earnings to be
lower due to withdrawal of its share offering, computer
equipment shipment delays and costs associated with sales staff
expansion.
    A strengthening Canadian dollar against U.S. currency will
also adversely affect revenues and earnings, since 85 pct of
revenues are generated by sales outside Canada, said Carolian,
a leading supplier of utility software for Hewlett-Packard
computer systems.
 Reuter
