Delphax Technologies Announces Workforce Reduction and Estimates for Fourth Quarter

The company expects that the workforce reduction will result in a charge of approximately $2.2 million in its fourth fiscal quarter ending Sept. 30, 2006. While the fourth fiscal quarter is not yet complete, the company estimates that its net sales for the quarter will be approximately $10.8 million to $11.8 million and the net loss, including the charge related to the workforce reduction, will be approximately $3.8 million to $4.8 million, compared with net sales of $12.7 million and net income of $0.3 million in the fourth quarter a year ago.