Epic Data International Inc.
TSX : EKD

Epic Data International Inc.

November 23, 2006 18:41 ET

Epic Data Announces Fourth Quarter and Fiscal 2006 Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 23, 2006) - Epic Data International Inc. (TSX:EKD), today reported audited financial results for the period ended September 30, 2006.

The company reported fiscal 2006 revenue of CDN $12.1 million compared to 2005 revenue of CDN $15.5 million. Gross Margins for the year decreased to 44% from 52% in 2005 and operating expense was reduced by CDN $1.1 million or 11% versus the prior year. Epic Data's net loss for 2006 was CDN $4.3 million, or CDN $0.34 per share compared to a net loss of CDN $1.7 million, or CDN $0.14 per share in 2005.

Fourth quarter revenue of CDN $2.5 million (Q4 2005 equals CDN $3.4 million) yielded a net loss for the quarter of CDN $1.9 million (Q4 2005 equals CDN $925 thousand loss).

Unencumbered cash position at September 30, 2006 was CDN $618 thousand, an increase of $152 thousand from the fourth quarter's opening position and Epic Data's contracted sales backlog at September 30, 2005 is CDN $5.5 million, substantially unchanged from the quarter's opening balance.

Epic Data's newly appointed CEO, James Dodds commented: "Since joining the company last month, I have made changes to our overall cost base, while at the same time strengthening and aligning our leadership team. Our customers continue to confirm our product strategy and we must now demonstrate consistent, improving financial performance through deliberate execution."

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.

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 Sheet

(Stated in thousands of Canadian dollars)
As at
September 30 September 30
2006 2005
------------ ------------

Assets:

Current Assets
Cash and cash equivalents $ 618 $ 1,675
Accounts receivable 2,045 3,686
Inventory 265 451
Prepaid Expenses 345 558
------------ ------------
Total current assets 3,273 6,370

Cash equivalents pledged as security 1,600 2,000

Capital assets 471 1,067

------------ ------------
$ 5,344 $ 9,437
------------ ------------
------------ ------------

Liabilities and Shareholders' Equity
(Deficiency in Assets):

Current Liabilities
Non-revolving credit facility $ - $ 733
Accounts payable and accrued liabilities 2,849 2,649
Deferred revenue 2,274 2,140
------------ -----------
5,123 5,522
------------ ------------

Long term Liabilities
Related party loan, net of
equity portion of $46 (2005 - $111) 954 889
Provision for unused leased facilities 969 650
------------ ------------
1,923 1,539
------------ ------------

Shareholders' Equity (deficiency in assets)
Share capital and contributed surplus 58,991 58,788
Deficit (60,693) (56,412)

------------ ------------
(1,702) 2,376
------------ ------------

$ 5,344 $ 9,437
------------- ------------
------------- ------------

Certain comparative figures have been reclassified to conform with the
financial statement presentation adopted for Fiscal 2006.


EPIC DATA INTERNATIONAL INC.
Consolidated Statement of Operations
For the periods ended September 30

(Stated in thousands of Canadian dollars)

3 months ended 12 months ended
---------------------- ---------------------

2006 2005 2006 2005
----------- --------- ----------- --------

Revenue $ 2,458 $ 3,361 $ 12,099 $ 15,546

Cost of sales 1,512 1,682 6,828 7,503

----------- --------- ----------- --------
Gross margin 946 1,679 5,271 8,043

Gross margin percentage 38% 50% 44% 52%

Operating expenses:
Selling, marketing and
administrative 1,783 2,140 6,866 7,888
Product development 273 378 1,599 1,654
----------- --------- ----------- --------
2,056 2,518 8,465 9,542
----------- --------- ----------- --------

Loss before undernoted items (1,110) (839) (3,194) (1,499)

Other expenses (earnings):
Amortization of property
and equipment 96 95 404 416
Unused leased facilities 700 (50) 550 (200)
Net finance charges 28 41 133 7
----------- --------- ----------- --------
824 86 1,087 223
----------- --------- ----------- --------

Loss for the period (1,934) (925) (4,281) (1,722)

Deficit, beginning of period (58,759) (55,487) (56,412) (54,690)

----------- --------- ----------- --------
Deficit, end of period $ (60,693) $ (56,412) $ (60,693) $(56,412)
----------- --------- ----------- --------
----------- --------- ----------- --------

Weighted average of
outstanding common
shares (thousands) 12,703 12,541 12,586 12,506

Certain comparative figures have been reclassified to conform with the
financial statement presentation adopted for Fiscal 2006.


EPIC DATA INTERNATIONAL INC.
Consolidated Statement of Cashflows
For the periods ended September 30

(Stated in thousands of Canadian dollars)

3 months ended 12 months ended
---------------------- ---------------------

2006 2005 2006 2005
----------- --------- ----------- --------

Cash provided by (used in):

Operating:
Net income (loss) $ (1,934) $ (925) $ (4,281) $ (1,722)

Items not involving cash:
Amortization of
capital assets 96 95 404 416
Impairment loss on
leasehold improvements 270 - 270 -
Provision for unused
lease facilities 469 (50) 319 (200)
Accretion of related
party loan 40 17 91 17
Stock-based compensation
expense 18 18 76 83
----------- --------- ----------- --------
893 80 (3,121) (1,406)

Change in non-cash operating
working capital
Accounts receivable 44 (18) 1,641 892
Inventory (26) (107) 186 (90)
Prepaid expenses 85 (87) 213 (45)
Non-revolving credit
facility - 733 (733) 733
Accounts payable &
accrued liabilities 456 438 200 (389)
Deferred revenue 532 (36) 134 (223)
----------- --------- ----------- --------
Total of non-cash
operating working capital 1,091 923 1,641 878
----------- --------- ----------- --------
50 78 (1,480) (528)

Investing:
Net acquisition of
capital assets 1 (144) (78) (337)
Cash equivalents pledged
as security - - 400 400
----------- --------- ----------- --------
1 (144) 322 63

Financing:
Related party loan - - - 1,000
Proceeds on exercise of
employee options 101 13 101 34
----------- --------- ----------- --------
101 13 101 1,034
----------- --------- ----------- --------

Increase (decrease) in
cash & cash equivalents 152 (53) (1,057) 569

Cash and cash equivalents,
beginning of period 466 1,728 1,675 1,106

----------- --------- ----------- --------

Cash and cash equivalents,
end of period $ 618 $ 1,675 $ 618 $ 1,675
----------- --------- ----------- --------
----------- --------- ----------- --------

The Company's cash position
consists of:
Cash and cash equivalents $ 618 $ 1,675 $ 618 $ 1,675
Cash and cash equivalents
pledged as security 1,600 2,000 1,600 2,000
----------- --------- ----------- --------

Cash position $ 2,218 $ 3,675 $ 2,218 $ 3,675
----------- --------- ----------- --------
----------- --------- ----------- --------

Certain comparative figures have been reclassified to conform with the
financial statement presentation adopted for Fiscal 2006.



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