Titan Logix Corp.
TSX VENTURE : TLA

Titan Logix Corp.

April 21, 2010 16:30 ET

Titan Logix Corp. Reports Financial Results for Fiscal 2010 Second-Quarter

EDMONTON, ALBERTA--(Marketwire - April 21, 2010) - Titan Logix Corp., (TSX VENTURE:TLA), today reported its unaudited financial results for the second quarter of its fiscal 2010 ended February 28, 2010.

Summary of Sales Revenue, Gross Profit and Net Loss:

Sales for the second quarter ended February 28, 2010 were $1,454,507, down $1,292,504 from $2,747,011 in the second quarter of the previous fiscal year. Gross profit in the three month period was $446,237 (31% margin) compared to $1,287,563 (47% margin) and net loss and comprehensive loss was $231,533 this period compared to net earnings of $475,356 in the second quarter of the previous fiscal year.

Year to date, sales in the six month period of this fiscal year, ended February 28, 2010, were $2,888,514, 47% lower than sales of $5,450,627 in the first half of fiscal 2009. The company's gross profit in this six month period was $879,304 (30% gross margin) compared to $2,413,420 (44% gross margin) in the first six months of fiscal 2009. Net loss and comprehensive loss was $536,706, ($-0.02 per diluted share), in the six month period, ended February 28, 2010, compared to earnings of $801,099 ($0.03 per diluted share) in the comparable six month period of the previous fiscal year.

Titan's financial results in the six month period ended February 28, 2010 reflect the results of Titan's customers, especially those in Alberta, feeling the effects of the current economic situation and continuing to proportionally scale back their operations and adjust their buying patterns to accommodate the slowdown.

Titan's board and management report the following in its second quarter's Management Discussion and Analysis. "We recognize the significance of our company losses and continue to monitor and control our day to day expenditures. However, keeping with our vision and close to our focus, we know we need to continue to move forward using our capital resources in preparation to enter new markets. We will continue to develop new products for current and new markets. We will also continue our efforts to secure strategic alliances to market both the new and the current flagship products. Our focus is on expanding into downstream markets while growing our market share in the upstream. "

Summary of Operating Expenses:

Total expenses for the second quarter of fiscal 2010 were $688,641, up slightly by 8% from $636,124 in the same period a year ago. General and administration expenses were $354,432, 25% lower than the $473,269 recorded in the second quarter of the previous fiscal year. This reduction is primarily due to lower consulting fees, insurance premiums, travel costs and employee compensation. Product development expense was $101,552 compared to a net recovery of $216,577 in the comparable period of the previous fiscal year. Marketing and sales expense decreased from $393,870 in the previous fiscal year's second quarter to $212,027 in this year's second quarter.

Year to date, in the six month period of this fiscal year, ended February 28, 2010, total expenses were $1,422,288 compared to $1,338,119 in the six month period of the previous fiscal year. General and administrative expenses were 26% lower due mainly to Titan's focus on cost control which includes reducing planned expenditures by optimizing staff, reducing employee benefits and reducing discretionary spending wherever possible. Product development expenses for the six month period of this fiscal year, ended February 28, 2010, were $262,516 compared to a net recovery of $122,195 in the previous fiscal year. The previous year's substantially lower product development expenses were primarily due to recording a recovery of $315,410 from scientific research and experimental development (SR&ED) claims for 2006, 2007 and 2008. For the six month period, ended February 28, 2010, marketing and sales expenses were 36% lower than in the six month period of the previous fiscal year. Employee compensation, sales training and advertising expenses were lower in the current six month period of fiscal 2010 than in the six month period of the previous fiscal year. Changes in the value of the Canadian dollar and management of receipts from U.S. sales resulted in a loss of $16,643 on foreign currency exchange during the six month period, ended February 28, 2010. This compares to a gain of $153,832 in the six month period of the previous fiscal year.

Working Capital:

At February 28, 2010, working capital was $3,326,211 compared to the August 31, 2009 year-end balance of $3,835,745. Cash and cash equivalents were $954,607 compared to $1,326,487 at the end of fiscal 2009. Titan does not have any debt except for trade payables.

Outstanding Share Summary:

The common shares of Titan Logix Corp. trade on the TSX Venture Exchange under the symbol TLA. At April 8, 2010, Titan had 24,883,440 common shares issued and outstanding.

Additional Information:

Titan Logix Corp.'s unaudited financial statements and management's discussion and analysis for the second quarter of fiscal 2010 as well as its audited financial statements and management's discussion and analysis for its fiscal year ended August 31, 2009 are available on SEDAR at www.sedar.com and on the company's website, www.titanlogix.com.

About Titan Logix Corp.:

Founded in 1979, Titan Logix Corp. has evolved into an advanced technology industrial instrumentation and controls company. We design, manufacture, distribute and service instrumentation, control and automation solutions. These technologies are used primarily in the oil and gas, transportation and aviation industries, which for many years have relied on manual intervention. However, due to rising costs, concerns and awareness about the environment, (including the importance of spill prevention) and technological advancements - to list but a few reasons – we expect an increased demand for our products. The products we specialize in comprise an essential part of a complete asset management solution in the following categories:

  • Transport Instruments: guided wave radar liquid gauging and control systems for mobile tankers;
  • Level and Flow Instruments: mechanical and electronic liquid level gauging systems for storage tanks and industrial process vessels;
  • Burner Controls: electronic burner management systems for atmospheric industrial heaters; and
  • Telemetry and Control Products: communication and control systems enabling remote telemetry and management of site processes.

Titan Logix Corp. is a public company listed on the TSX Venture Exchange and its shares trade under the symbol, TLA.

This news release contains certain statements with information that may be forward-looking and subject to unknown risks and uncertainties. The actual results, performance and achievements of Titan Logix Corp. may differ materially from the results, performance and achievements expressed or implied by such forward-looking statements. These forward-looking statements may not relate strictly to historical or current facts. They represent management's views as of the date of this press release and we assume no obligation to update them. We caution you not to place undue reliance on these forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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