Epic Data International Inc.
TSX : EKD

Epic Data International Inc.

November 17, 2005 17:00 ET

Epic Data Announces Fourth Quarter and Fiscal 2005 Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 17, 2005) - Epic Data International Inc. (TSX:EKD) today reported audited financial results for the period ended September 30, 2005.

The company reported fiscal 2005 revenue of CDN $15.5 million, an increase of 9% over prior year performance. Gross Margins for the year improved to 52% from 43% in 2004 and operating expense was reduced by CDN $1.4 million or 13% versus the prior year. Epic Data's net loss for 2005 was CDN $1.7 million, or CDN $0.14 per share compared to a net loss of CDN $5.2 million, or CDN $0.41 per share in 2004.

Fourth quarter revenue of CDN $3.4 million (2004 equals CDN $4.4 million) yielded a net loss for the quarter of CDN $926 thousand (2004 equals CDN $76 thousand loss).

Total cash position at September 30, 2005 was CDN $3.7 million, an increase of 5% from the fiscal year's opening position at CDN $3.5 million on October 1, 2004 and unchanged from the fourth quarter's opening position. Included in this September 30, 2005 cash position are the proceeds of a previously announced non-revolving credit facility in the amount of CDN $733 thousand, from a Canadian chartered bank received in July 2005. Total cash position includes CDN $2.0 million (2004 equals CDN $2.4 million) in funds which have been pledged as security on the company's head office building lease.

Epic Data's contracted sales backlog at September 30, 2005 is CDN $5.1 million, unchanged from the quarter's opening balance.

A comprehensive analysis of Epic Data's financial statements is available at sedar.com and a conference call to discuss these results will be held at 2:30 pm today. Information regarding participation in the call is available on the Investors page of 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, automotive, high technology and industrial equipment & machinery manufacturers, 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
As at September 30

(Stated in thousands of Canadian dollars) 2005 2004
---------- ----------

Assets:

Current Assets
Cash and cash equivalents $ 1,675 $ 1,106
Accounts receivable 3,686 4,578
Inventory 451 361
Prepaid Expenses 558 513
---------- ----------
Total current assets 6,370 6,558

Cash equivalents pledged as security 2,000 2,400

Property and equipment 1,067 1,146

---------- ----------
$ 9,437 $ 10,104
---------- ----------
---------- ----------

Liabilities and Shareholders' Equity:

Current Liabilities
Non-revolving credit facility $ 733 $ -
Accounts payable and accrued liabilities 2,649 3,038
Deferred revenue 2,140 2,363
---------- ----------
5,522 5,401
---------- ----------

Long term liabilities
Related party loan, net of
equity portion of $111 889 -
Provision for unused leased facilities 650 850
---------- ----------
1,539 850
---------- ----------

Shareholders' Equity:
Share Capital 58,788 58,543
Deficit (56,412) (54,690)

---------- ----------
2,376 3,853
---------- ----------

$ 9,437 $ 10,104
---------- ----------
---------- ----------

Certain comparative figures have been reclassified to conform with
the financial statement presentation adopted for Fiscal 2005.


EPIC DATA INTERNATIONAL INC.
Consolidated Statements of Operations
For the Periods ended September 30

3 months ended 12 months ended
(Stated in thousands -------------------- ---------------------
of Canadian dollars) 2005 2004 2005 2004
-------- -------- -------- --------

Revenue $ 3,361 $ 4,449 $ 15,546 $ 14,228

Cost of sales 1,682 2,047 7,503 8,046

-------- -------- -------- --------
Gross margin 1,679 2,402 8,043 6,182

Gross margin
percentage 50% 54% 52% 43%

Operating expenses:
Selling, marketing
and administrative 2,140 1,908 7,888 9,062
Product development 378 407 1,654 1,890
-------- -------- -------- --------
2,518 2,315 9,542 10,952
-------- -------- -------- --------

Income(Loss) before
undernoted items (839) 87 (1,499) (4,770)

Other expenses
(earnings):
Amortization of
property and
equipment 95 165 416 713
Unused leased
facilities (50) - (200) (150)
Net finance charges 41 (2) 7 (62)
-------- -------- -------- --------
86 163 223 501
-------- -------- -------- --------

Loss before income
taxes (925) (76) (1,722) (5,271)

Income taxes
(Recovery) - - - (92)

-------- -------- -------- --------
Loss for the period (925) (76) (1,722) (5,179)

Deficit, beginning
of period (55,487) (54,614) (54,690) (49,511)

-------- -------- -------- --------
Deficit, end of
period $(56,412) $(54,690) $(56,412) $(54,690)
-------- -------- -------- --------
-------- -------- -------- --------

Weighted average of
outstanding common
shares (thousands) 12,541 12,488 12,506 12,480

Income (loss) per
common share:
basic & diluted $ (0.07) $ (0.01) $ (0.14) $ (0.41)

Certain comparative figures have been reclassified to conform with
the financial statement presentation adopted for Fiscal 2005.


EPIC DATA INTERNATIONAL INC.
Consolidated Statements of Cash Flows
For the periods ended September 30

3 months ended Year ended
(Stated in thousands -------------------- ---------------------
of Canadian dollars) 2005 2004 2005 2004
-------- -------- -------- --------

Cash provided by
(used in):

Operating:
Loss for the period $ (925) $ (76) $ (1,722) $ (5,179)
Items not involving
cash:
Amortization of
capital assets 95 164 416 713
Provision for
unused lease
facilities (50) - (200) (150)
Accretion of
related party loan 17 - 17 -
Stock-based
compensation
expense 18 14 83 14
-------- -------- -------- --------
$ (845) $ 102 $ (1,406) $ (4,602)

Change in non-cash
operating working
capital
Accounts receivable (18) (1,579) 892 2,336
Inventory (107) (80) (90) (149)
Prepaid expenses (87) 145 (45) 250
Non-revolving
credit facility 733 - 733 -
Accounts payable &
accrued liabilities 438 (138) (389) (755)
Deferred revenue (36) (1) (223) (603)
-------- -------- -------- --------
Total of non-cash
operating working
capital 923 (1,653) 878 1,079
-------- -------- -------- --------
78 (1,551) (528) (3,523)
Investing:
Net acquisition of
capital assets (144) 62 (337) (174)
Cash equivalents
pledged as security - - 400 400
-------- -------- -------- --------
(144) 62 63 226
Financing:
Related party loan - - 1,000 -
Proceeds on
exercise of
employee options 13 - 34 10
-------- -------- -------- --------
13 0 1,034 10
-------- -------- -------- --------

Increase (decrease)
in cash & cash
equivalents (53) (1,489) 569 (3,287)

Cash and cash
equivalents,
beginning of period 1,728 2,595 1,106 4,393

-------- -------- -------- --------
Cash and cash
equivalents, end of
period $ 1,675 $ 1,106 $ 1,675 $ 1,106
-------- -------- -------- --------
-------- -------- -------- --------

The Company's cash
position consists of:
Cash and cash
equivalents $ 1,675 $ 1,106 $ 1,675 $ 1,106
Cash and cash
equivalents pledged
as security 2,000 2,400 2,000 2,400
-------- -------- -------- --------
Cash position $ 3,675 $ 3,506 $ 3,675 $ 3,506
-------- -------- -------- --------
-------- -------- -------- --------

Certain comparative figures have been reclassified to conform with
the financial statement presentation adopted for Fiscal 2005.



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