Epic Data International Inc.
TSX : EKD

Epic Data International Inc.

April 25, 2007 17:00 ET

Epic Data Announces Fiscal 2007 Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 25, 2007) - Epic Data International Inc. (TSX:EKD) today reported financial results for its second quarter ended March 31, 2007.

The company reported fiscal 2007 second quarter revenue of CDN $3.01 million compared to revenue in the previous year's second quarter totaling CDN $2.54 million. Gross Margins for the second quarter improved to 51% from 44% in 2006 and operating expense was reduced by CDN $0.44 million or 20% versus the prior year's second quarter. Epic Data's net loss for the quarter was CDN $0.18 million ($0.01 per share), compared to a net loss of CDN $1.15 million ($0.09 per share) in the second quarter of fiscal 2006.

For the first six months of fiscal 2007 the company's revenue stands at CDN $5.91 million (2006 equals CDN $6.68 million), gross margins are 51% versus 45% in the prior year and operating expense is down by 22%, resulting in a net loss for the period of CDN $0.37 million ($0.03 per share) compared to a net loss in the same period last year of CDN $1.55 million ($0.12 per share).

The company's closing unencumbered cash position is CDN $1.11 million, an increase of CDN $0.99 million in the quarter and the closing contracted sales backlog is CDN $5.5 million, consistent with backlog levels at the commencement of the fiscal year and the comparative period end in fiscal 2006.

James Dodds, Epic Data's President and Chief Executive Officer, commented: "The management team is focused on achieving consistent improvement in financial and operational performance. These second quarter results show progress towards these goals. There is a renewed sense of purpose among our employees and we are looking forward to continuing the process of improving a great company."

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
March 31 September 30
2007 2006
(unaudited) (audited)
------------------------------

Assets:

Current assets
Cash and cash equivalents $ 1,111 $ 618
Accounts receivable 2,680 2,045
Inventory 264 265
Prepaid expenses 555 345
------------- -------------
Total current assets 4,610 3,273

Cash equivalents pledged as security 1,200 1,600

Capital assets 367 471

------------- -------------
$ 6,177 $ 5,344
------------- -------------
------------- -------------

Liabilities and Deficiency in Assets:

Current liabilities
Accounts payable and accrued liabilities $ 2,735 $ 2,849
Deferred revenue 3,817 2,274
------------- -------------
6,552 5,123
------------- -------------

Long term liabilities
Related party loan, net of equity portion
of $15 (September 30, 2006 - $46) 985 954
Provision for unused leased facilities 754 969
------------- -------------
1,739 1,923
------------- -------------

Deficiency in assets
Share capital and contributed surplus 58,950 58,991
Deficit (61,064) (60,693)

------------- -------------
(2,114) (1,702)
------------- -------------

$ 6,177 $ 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 periods ended March 31

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

3 months ended 6 months ended
---------------------- ---------------------

2007 2006 2007 2006
----------- --------- ----------- --------

Revenue $ 3,010 $ 2,535 $ 5,909 $ 6,677

Cost of sales 1,469 1,415 2,916 3,690

----------- --------- ----------- --------
Gross margin 1,541 1,120 2,993 2,987

Gross margin percentage 51% 44% 51% 45%

Operating expenses:
Selling, marketing and
administrative 1,281 1,751 2,689 3,468
Product development 459 433 694 880
----------- --------- ----------- --------
1,740 2,184 3,383 4,348
----------- --------- ----------- --------

Loss before undernoted items (199) (1,064) (390) (1,361)

Other expenses (earnings):
Amortization of capital
assets 60 105 130 209
Unused leased facilities (107) (50) (215) (100)
Net finance charges 31 34 66 77
----------- --------- ----------- --------
(16) 89 (19) 186
----------- --------- ----------- --------

Loss for the period (183) (1,153) (371) (1,547)

Deficit, beginning of period (60,881) (56,806) (60,693) (56,412)

Deficit, end of period $ (61,064) $ (57,959) $ (61,064)$ (57,959)
----------- --------- ----------- --------
----------- --------- ----------- --------

Weighted average number of
shares 12,901 12,547 12,901 12,547

Loss per common share $ (0.01) $ (0.09) $ (0.03) $ (0.12)

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 periods ended March 31

(Thousands of Canadian dollars - unaudited)

3 months ended 6 months ended
---------------------- ---------------------

2007 2006 2007 2006
----------- --------- ----------- --------

Cash provided by (used in):

Operating:
Loss for the period $ (183) $ (1,153) $ (371) $ (1,547)

Items not involving cash:
Amortization of capital
assets 60 105 130 209
Provision for unused
leased facilities (107) (50) (215) (100)
Accretion of related party
loan 15 16 31 32
Stock-based compensation
expense (recovery) (2) 21 (41) 42
----------- --------- ----------- --------
Total of items not
involving cash (34) 92 (95) 183

Change in non-cash
operating working capital
Accounts receivable 1,368 3,199 (635) 1,405
Inventory (48) 63 1 73
Prepaid expenses (50) (134) (210) 34
Non-revolving credit
facility - (736) 0 (733)
Accounts payable & accrued
liabilities 173 (1,345) (114) (618)
Deferred revenue (222) (641) 1,543 322
----------- --------- ----------- --------
Total of non-cash operating
working capital 1,221 406 585 483
----------- --------- ----------- --------
1,004 (655) 119 (881)
Investing:
Net acquisition of capital
assets (26) (7) (26) (72)
Cash equivalents pledged as
security 14 400 400 400
----------- --------- ----------- --------
(12) 393 374 328

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

Increase (decrease) in cash
and cash equivalents 992 (262) 493 (553)

Cash and cash equivalents,
beginning of period 119 1,384 618 1,675

----------- --------- ----------- --------
Cash and cash equivalents,
end of period $ 1,111 $ 1,122 $ 1,111 $ 1,122
----------- --------- ----------- --------
----------- --------- ----------- --------

The Company's cash position
consists of:
Cash and cash equivalents $ 1,111 $ 1,122 $ 1,111 $ 1,122
Cash and cash equivalents
pledged as security 1,200 1,600 1,200 1,600
----------- --------- ----------- --------

Cash position $ 2,311 $ 2,722 $ 2,311 $ 2,722
----------- --------- ----------- --------
----------- --------- ----------- --------

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


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