Epic Data International Inc.
TSX VENTURE : EKD

Epic Data International Inc.

May 29, 2009 18:09 ET

Epic Data Announces Results for the Second Quarter

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 29, 2009) - Epic Data International Inc. (TSX VENTURE:EKD), a provider of manufacturing operations management and real-time data collection solutions, today announced the results of operations for the three and six months ended March 31, 2009.

"Revenue for the second quarter of 2009 came in significantly lower than the same period in 2008, as many of our manufacturing customers in North America and Europe delayed capital expenditure programs in light of the current economic conditions," said Robert Nygren, President & CEO. "Despite the revenue decrease, recent cost control measures resulted in near break-even performance, with a net loss of $77 thousand and positive EBITDA of $36 thousand for the quarter," added Nygren.



Selected Financial Information

All amounts in 000's of Canadian dollars, except per share figures

Three months Six months
ended March 31, ended March 31,
2009 2008 2009 2008
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Revenue $ 1,617 $ 2,153 $ 3,428 $ 3,925
Cost of sales 721 1,095 1,607 2,018
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55% 49% 53% 49%
Gross margin 896 1,058 1,821 1,907
Selling general and
administration 860 1,251 1,747 2,383
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Income (loss) before
undernoted items - EBITDA 36 (193) 74 (476)
Other expenses (income) 113 94 95 153
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Net loss for the period $ (77) $ (287) $ (21) $ (629)
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Net loss per share $ (0.01) $ (0.02) $ (0.00) $ (0.05)
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Results of Operations for the Three and Six months ended March 31, 2009

Revenue

Total revenue for the three months ended March 31, 2009 was $1.6 million as compared with $2.2 million in the three months ended March 31, 2008, a decrease of $536 thousand compared with 2008. Maintenance revenue was higher in part due to an improved exchange rate for revenue denominated in US dollars. Each of hardware, software and professional services revenue was down as customers have curtailed spending in light of the economic downturn.

Total revenue for the six months ended March 31, 2009 was $3.4 million as compared with $3.9 million in the six months ended March 31, 2008, a decrease of $497 thousand compared with 2008. The decrease is due to the slower second quarter as discussed above. In addition maintenance revenue benefited from recording revenue of $68 thousand on the signing of a maintenance agreement which covered a period in the prior fiscal year.

Gross margin

While total gross margins for the three and six months ended March 31, 2009 was down slightly as compared with the three and six months ended March 31, 2008, due to the decrease in revenue, both periods in fiscal 2009 show an improved margin rate as a percentage of revenue compared to the same periods in 2008, which is due to cost controls, improved staff efficiency and higher maintenance revenue.

Selling, general and administration

Selling, general and administration expenses, which include product development costs, for the three months ended March 31, 2009 were $802 thousand as compared to $1.1 million in the three months ended March 31, 2008. The decrease of $324 thousand is due to cost reductions, including staff, and other non-recurring recoveries totaling $172 thousand.

Selling, general and administration expenses for the six months ended March 31, 2009 were $1.6 million as compared to $2.1 million in the six months ended March 31, 2008. The decrease of $572 thousand is due to cost reductions, including staff, the recovery of a receivable previously written off and certain other non-recurring recoveries totaling $360 thousand.

EBITDA

EBITDA for the three months ended March 31, 2009 was $36 thousand compared with a loss of $193 thousand in the three months ended March 31, 2008 and for the six months ended March 31, 2009 it was $74 thousand as compared with a loss of $476 thousand in the six months ended March 31, 2008. The increase in EBITDA in the second quarter and year to date was due to cost reductions under taken by management and the non-recurring recoveries discussed above.

Net loss

Net loss for the three months ended March 31, 2009 was $77 thousand as compared with a loss of $287 thousand in the three months ended March 31, 2008. Net income for the six months ended March 31, 2009 was $21 thousand compared with a loss of $629 thousand in the six months ended March 31, 2008. The improvements in the second quarter and year to date of fiscal 2009 as compared with the same periods in fiscal 2008 were due to cost reductions, the favourable exchange rate on the US dollar and non-recurring recoveries of $172 thousand and $360 thousand, respectively.

About Epic Data

For over 30 years Epic Data has been a leader in manufacturing operations management and real-time data collection solutions to the world's most progressive complex manufacturing organizations. Defense contractors, aerospace, automotive, high technology and industrial equipment & machinery manufacturers employ Epic Data solutions to optimize the ROI of their manufacturing IT infrastructure investments and operations by increasing plant and people productivity, plant to enterprise visibility and time to value. Information about Epic Data is available at www.epicdata.com.

Caution Regarding Forward-looking Statements

In this document and in other documents filed with Canadian regulatory authorities or in other communications, the Company may from time to time make written or oral forward-looking statements within the meaning of applicable securities legislation, including statements regarding the Company's business plans and financial objectives. These statements typically use words such as prospects, believe, estimate, forecast, project, expect, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the forecasts, projections and other forward-looking statements will not be achieved or will prove inaccurate. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it provides no assurance that these expectations will prove to have been correct. The Company cautions readers against placing undue reliance on forward-looking statements when making decisions, as the actual results could differ considerably from the opinions, plans, objectives, expectations, forecasts, estimates and intentions expressed in such forward-looking statements due to various material factors. Among other things, these factors include fiscal and economic policies, changes in interest and foreign exchange rates, and general economic conditions, legislative and regulatory developments, competition and access to capital. The Company further cautions that the foregoing list of factors is not exhaustive. For more information on the risks, uncertainties and assumptions that would cause the Company's actual results to differ from current expectations, please also refer to the Company's public filings available at www.sedar.com. The Company does not undertake to update any forward-looking statements, whether oral or written, made by itself or on its behalf, except to the extent required by securities regulations.

The contents of this news release have neither been approved nor disapproved by any regulatory authority.

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