Epic Data International Inc.
TSX : EKD

Epic Data International Inc.

January 19, 2007 17:08 ET

Epic Data Announces Fiscal 2007 First Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2007) - Epic Data International Inc. (TSX:EKD) today reported financial results for its first quarter ended December 31, 2006.

The company reported fiscal 2007 first quarter revenue of CDN $2.90 million compared to revenue in the previous year's first quarter totaling CDN $4.14 million. Gross Margins for the current quarter improved to 50% from 45% in 2006 and operating expense was reduced by CDN $0.52 million or 24% versus the prior year's first quarter. Epic Data's net loss for the quarter was CDN $0.19 million, compared to a net loss of CDN $0.39 million in the first quarter of fiscal 2006.

The company's contracted sales backlog at quarter end improved to CDN $6.07 million from an opening position of CDN $5.49, on approximately CDN $3.5 million in new bookings, the majority of which were won in the later stages of the first quarter; and the closing unencumbered cash position at December 31, 2006 was CDN $0.12 million.

James Dodds, Epic Data's President and Chief Executive Officer, commented: "These results, although considerably short of where we need to be, are none-the-less showing positive progress. Our operating expense levels have been reduced significantly and we are entering our second quarter with a solid contracted sales backlog. It's now in the hands of our new management team to successfully execute on the fulfillment of this backlog, while we continue to build on the sales momentum initiated in the first quarter."

Further explanation and background information with respect these financial results can be found at www.sedar.com or on the company's website at www.epicdata.com.

About Epic Data International Inc.

For over 30 years Epic Data has been a leader in automatic identification and data collection solutions for the world's most progressive organizations.

In aerospace and defense, industrial equipment, automotive and technology, our systems are used to increase plant productivity and production velocity while identifying the continuous improvement initiatives vital to winning in today's competitive manufacturing environments.

In parking enforcement and route management, our systems are used to increase productivity while improving customer service and worker safety by connecting mobile personnel to central offices in real time.

People and technology make Epic Data a global leader in automated data collection solutions for the extended enterprise.

Information about Epic Data is available at www.epicdata.com.

Note: Forward-looking statements in this news release are based on current expectations of management. Epic Data cautions investors that, due to risks and uncertainties, actual events may differ materially from current expectations.



EPIC DATA INTERNATIONAL INC.
Consolidated Balance Sheets

(Thousands of Canadian dollars)

As at
December 31 September 30
2006 2006
(unaudited) (audited)
----------------------------

Assets:

Current assets
Cash and cash equivalents $ 119 $ 618
Accounts receivable 4,048 2,045
Inventory 216 265
Prepaid expenses 505 345
------------- -------------
Total current assets 4,888 3,273

Cash equivalents pledged as security 1,214 1,600

Capital assets 401 471
------------- -------------
$ 6,503 $ 5,344
------------- -------------
------------- -------------

Liabilities and Deficiency in Assets:

Current liabilities
Accounts payable and accrued liabilities $ 2,562 $ 2,849
Deferred revenue 4,039 2,274
------------- -------------
6,601 5,123
------------- -------------

Long term liabilities
Related party loan, net of equity portion
of $30 (September 30, 2006 - $46) 970 954
Provision for unused leased facilities 861 969
------------- -------------
1,831 1,923
------------- -------------

Deficiency in assets
Share capital and contributed surplus 58,952 58,991
Deficit (60,881) (60,693)

------------- -------------
(1,929) (1,702)
------------- -------------

$ 6,503 $ 5,344
------------- -------------
------------- -------------

Certain comparative figures have been reclassified to conform with the
financial statement presentation adopted for Fiscal 2007.


EPIC DATA INTERNATIONAL INC.
Consolidated Statements of Operations and Deficit
For the three months ended December 31

(Thousands of Canadian dollars except per share amounts - unaudited)

------------- -------------
First Quarter First Quarter
2007 2006
------------- -------------

Revenue $ 2,899 $ 4,142

Cost of sales 1,447 2,275

------------- -------------
Gross margin 1,452 1,867

Gross margin percentage 50% 45%

Operating expenses:
Selling, marketing and administrative 1,408 1,717
Product development 235 447
------------- -------------
1,643 2,164
------------- -------------

Loss before undernoted items (191) (297)

Other expenses (earnings):
Amortization of capital assets 70 104
Unused leased facilities (108) (50)
Net finance charges 35 43
------------- -------------
(3) 97
------------- -------------

Loss for the period (188) (394)

Deficit, beginning of period (60,693) (56,412)

------------- -------------
Deficit, end of period $ (60,881) $ (56,806)
------------- -------------
------------- -------------

Weighted average number of shares 12,901 12,547

Loss per common share $ (0.01) $ (0.03)

Certain comparative figures have been reclassified to conform with the
financial statement presentation adopted for Fiscal 2007.


EPIC DATA INTERNATIONAL INC.
Consolidated Statements of Cash Flows
For the three months ended December 31

(Thousands of Canadian dollars - unaudited)

------------- -------------
First Quarter First Quarter
2007 2006
------------- -------------

Cash provided by (used in):

Operating:
Loss for the period $ (188) $ (394)

Items not involving cash:
Amortization of capital assets 70 104
Provision for unused leased facilities (108) (50)
Accretion of related party loan 16 16
Stock-base compensation expense
(recovery) (39) 21
------------- -------------
Total of items not involving cash (61) 91

Change in non-cash operating working
capital
Accounts receivable (2,003) (1,794)
Inventory 49 10
Prepaid expenses (160) 168
Non-revolving credit facility - 3
Accounts payable & accrued liabilities (287) 727
Deferred revenue 1,765 963
------------- -------------
Total of non-cash operating working
capital (636) 77
------------- -------------
(885) (226)
Investing:
Net acquisition of capital assets - (65)
Cash equivalents pledged as security 386 -
------------- -------------
386 (65)

------------- -------------
Financing: - -
------------- -------------

Increase (decrease) in cash and cash
equivalents (499) (291)

Cash and cash equivalents, beginning of
period 618 1,675

------------- -------------
Cash and cash equivalents, end of period $ 119 $ 1,384
------------- -------------
------------- -------------

The Company's cash position consists of:
Cash and cash equivalents $ 119 $ 1,384
Cash and cash equivalents pledged as
security 1,214 2,000
------------- -------------
Cash position $ 1,333 $ 3,384
------------- -------------
------------- -------------

Certain comparative figures have been reclassified to conform with the
financial statement presentation adopted for Fiscal 2007.


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