Titan Digital Corporation

Titan Digital Corporation

June 06, 2006 12:09 ET

Titan Announces Fiscal 2006 Third Quarter Results

CALGARY, ALBERTA--(CCNMatthews - June 6, 2006) - Titan Digital Corporation ("Titan" or the "Corporation") (TSX VENTURE:TDI), a leading provider of archive storage management software and solutions, announces its financial and operating results for the nine months ended March 31, 2005. The following is a summary only and should be read in conjunction with the financial statements and notes thereto along with the management discussion and analysis, both of which can be viewed at www.sedar.com. All financial amounts are expressed in thousands of Canadian dollars except per share amounts.


Three months Nine months
ended March 31 ended December 31
2006 2005 Change 2006 2005 Change

Revenue $ 267 $ 494 $(227) (46)% $1,148 $1,904 $(756) (40)%
Gross profit 203 323 (120) (37)% 807 1,296 (489) (38)%
expenses 375 590 (215) (36)% 1,067 1,580 (513) (33)%
Funds generated
by (used in)
operations (102) (230) 128 (140) (151) 11
Net loss (181) (277) 96 (324) (321) (3)
Net loss per
share - basic
and diluted (0.01) (0.02) (0.01) (0.02) (0.02) -

Titan reported revenues of $1,148 for the nine months ended March 31, 2006, net loss of $324 ($0.02 per share) and funds used in operations of $140. These results compare to revenues of $1,904, net loss of $321 ($0.02 per share) and funds used in operations of $151 for the nine months ended March 31, 2005.

A combination of increased competitive pressure from low cost magnetic hard disks, delays in the next generation of high capacity optical drives (Blu-ray) and the decision by two manufacturers to discontinue manufacturing optical libraries combined to lower revenues. Given reduced license revenues, costs are being tightly controlled.

In response to being very dependent on the optical storage marketplace, Titan has stepped up its efforts to offer storage management software for magnetic based storage technologies, disk and tape. Titan has entered into a joint venture with a Limited Partnership ("Magnetic WORM Technology Limited Partnership") to develop and market Titan IP and products for the high growth sectors in the financial services compliance storage marketplace. In April 2006, Titan internally demonstrated proof of concept with the Magnetic WORM IP and filed a provisional patent in Canada and USA. The first product is expected to be released in the fall.


Titan is an international digital storage management company that develops and markets high performance archival storage management software, solutions and services. Titan was created to deliver innovative, simple and secure storage management solutions while ensuring accessibility to stored data throughout the information life cycle.

This release may contain certain forward-looking statements reflecting Titan Digital Corporation's current expectations in the technology business and sales and storage management software markets. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including without limitation, changes in market and competition, technological and competitive developments, and potential downturns in economic conditions generally.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

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