SAND TECHNOLOGY &lt;SNDCF> MULLING REVERSE SPLIT

  Sand Technology Systems Inc said it is
  considering a reverse stock split of at least one-for-10 and
  expects to report a second-quarter profit, compared to a loss
  last year.
      The stock consolidation "is something we're discussing, but
  it's not definite," Sand Technology president Jerry Shattner
  told Reuters in an interview.
      A private placement recently brought the number of
  outstanding shares to 106 mln, up from 97.1 mln shares on July
  31, 1986, the fiscal yearend.
      "The company has always had the aura of a penny stock,"
  Shattner said, adding that Sand plans, at some time, to apply
  for listing on the Montreal Stock Exchange.
      Shattner said the company expects to report a profit of
  five pct, or about 350,000 dlrs, on sales of seven mln dlrs,
  for the second quarter ended January 31. Results for the third
  quarter should be about the same as the second, he added.
      Last year, Sand lost 243,064 dlrs on revenues of 7,012,195
  dlrs in the second quarter.
      After "a disastrous first quarter," Sand hopes to break even
  in the current fiscal year, Shattner said. The company has
  scaled back its sales forecast to about 25 mln dlrs, from the
  33.5 mln dlrs projected in December.
      The rapid appreciation of the Japanese yen against U.S. and
  Canadian dollars last year led to Sand's loss of 2.1 mln dlrs,
  or two cts per share, on sales of 24.9 mln dlrs.
      In the first fiscal quarter this year, the company lost
  1,350,387 dlrs, or one ct per share, on sales of 3,570,585
  dlrs.
      Shattner believes the company will post better results this
  year due to several factors.
      "Last year, one of our biggest problems was we were buying
  products in Japanese yen. We now buy some products from Hitachi
  in U.S. dollars and the results are starting to show up in the
  second quarter," he said.
      Sand Technology sells, under its trademark, computer
  accessories such as disk drives, solid-state memory enhancement
  devices and printers manufactured by Hitachi Ltd &lt;HIT> of
  Japan.
      Shattner said Sand's affiliate in Detroit, ST Systems Inc,
  is developing software that lets large maniframe computers
  handle large databases and share them between applications.
      It is also distributing a new product called Sapiens, which
  is artificial intelligence computer language for use by major
  corporations.
      The company has also reduced costs through some staff
  cutting and a switch to profit sharing plans for sales staff
  instead of straight commissions, Shattner said.
      And Sand plans to market a laser printer in the fourth
  fiscal quarter, Shattner said.
  

