SAND TECHNOLOGY <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 <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.