Epic Data International Inc.
TSX : EKD

Epic Data International Inc.

July 21, 2005 17:00 ET

Epic Data Announces Third Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 21, 2005) - Epic Data International Inc. (TSX:EKD), today reported financial results for the quarter ended June 30, 2005. Third quarter revenue of CDN $2.9 million (2004 equals CDN $3.4 million) yielded a net loss of CDN $0.9 million versus a net loss in the third quarter of 2004 of CDN $1.9 million.

For the nine month period to date, revenue was CDN $12.2 million (2004 equals CDN $9.8 million) and the net loss was CDN $0.8 million (2004 equals CDN $5.1 million net loss). The company's contracted sales backlog at the end of the period stands at CDN $5 million.

The company reported that anticipated substantial new orders had been delayed, resulting in the lower third quarter revenue. These orders are now expected to contribute to a significantly improved fourth quarter.

Total cash position at June 30, 2005 was CDN $3.7 million, up from CDN $3.5 million at the beginning of the fiscal year. Included in this June 30, 2005 cash position is the proceeds of a previously announced loan in the amount of CDN $1.0 million, from a company owned by a member of Epic Data's Board of Directors.

A comprehensive analysis of Epic Data's third quarter 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 our website at www.epicdata.com.

About Epic Data International Inc.

For 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 Sheet


As at
(Stated in thousands of June 30 September 30
dollars - unaudited) 2005 2004
--------------------------------

Assets:

Current assets
Cash and cash equivalents $ 1,728 $ 1,106
Accounts receivable 4,012 4,939
Prepaid expenses 471 513
--------- ---------
Total current assets 6,211 6,558

Cash equivalents pledged as
security 2,000 2,400

Capital assets 1,018 1,146

--------- ---------
$ 9,229 $ 10,104
--------- ---------
--------- ---------

Liabilities and Shareholders'
Equity:

Current liabilities
Accounts payable and other
current liabilities $ 2,211 $ 3,038
Deferred revenue 2,176 2,363
--------- ---------
Total current liabilities 4,387 5,401
--------- ---------

Long term liabilities
Long term portion of provision
for unused leased facilites 700 850
Long term debt 1,000 -
--------- ---------
Total long term liabilities 1,700 850
--------- ---------


Shareholders' equity:
Capital stock 58,629 58,543
Deficit (55,487) (54,690)

--------- ---------
3,142 3,853
--------- ---------

$ 9,229 $ 10,104
--------- ---------
--------- ---------


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


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


3 months ended 9 months ended
--------------------- ---------------------

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

Revenue $ 2,916 $ 3,427 $ 12,185 $ 9,779

Cost of sales 1,533 2,403 5,821 5,998

--------------------- ---------------------
Gross margin 1,383 1,024 6,364 3,781

Gross margin
percentage 47% 30% 52% 39%

Expenses:
Selling, marketing &
administrative 1,830 2,439 5,748 7,153
Product development 435 503 1,276 1,483
--------------------- ---------------------
2,265 2,935 7,024 8,636
--------------------- ---------------------

Earnings (loss) before
undernoted items (882) (1,911) (660) (4,855)

Other expenses
(earnings):
Amortization of
capital assets 90 154 321 549
Provision for unused
leased facilities (50) (50) (150) (150)
Net Investment and
other income (2) (9) (34) (60)
--------------------- ---------------------
38 95 137 339
--------------------- ---------------------

Earnings (loss) before
income taxes (920) (2,006) (797) (5,194)

Income taxes - (92) - (92)

--------------------- ---------------------
Net earnings (loss) $ (920) $ (1,914) $ (797) $ (5,102)
--------------------- ---------------------
--------------------- ---------------------

Weighted average of
outstanding common
shares (thousands) 12,777 12,488 12,584 12,478

Earnings (loss)
per common share:
basic and fully
diluted $ (0.07) $ (0.15) $ (0.06) $ (0.41)

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


EPIC DATA INTERNATIONAL INC.
Consolidated Statement of Cash Flows
For the periods ended June 30


3 months ended 9 months ended
--------------------- ---------------------

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

Cash provided by
(used in):

Operations:
Net Income(Loss) $ (920) $ (1,914) $ (797) $ (5,102)
Items not involving
cash:
Amortization of
capital assets 90 154 321 549
Provision for unused
leased facilities (50) (50) (150) (150)
Stock based
compensation
expense 16 65
--------- --------- --------- ---------
(864) (1,810) (561) (4,703)
Changes in non-cash
operating working
capital:
Accounts receivable 16 283 927 3,846
Prepaid expenses 55 103 42 105
Accounts payable and
accrued liabilities (425) 599 (827) (618)
Deferred revenue (344) (370) (187) (602)
--------- --------- --------- ---------
Total of changes in
non-cash operating
working capital (698) 615 (45) 2,731
--------- --------- --------- ---------
(1,562) (1,195) (606) (1,972)

Investments:
Net acquisition of
capital assets (33) 31 (193) (236)
Cash equivalents
pledged as security 400 400
--------- --------- --------- ---------
(33) 31 207 164

Financing:
Increase in long
term debt 1,000 1,000
Proceeds on exercise
of employee stock
options 21 21 10
--------- --------- --------- ---------
1,021 1,021 10

--------- --------- --------- ---------
Increase (decrease) in
cash position (574) (1,164) 622 (1,798)

Cash and cash
equivalents, beginning
of period 2,302 3,759 1,106 4,393

--------- --------- --------- ---------
Cash and cash
equivalents, end of
period $ 1,728 $ 2,595 $ 1,728 $ 2,595
--------- --------- --------- ---------
--------- --------- --------- ---------

The company's cash
position consists of:
Cash and cash
equivalents 1,728 2,595 1,728 2,595
Cash and cash
equivalents pledged
as security 2,000 2,400 2,000 2,400
--------- --------- --------- ---------
Total cash and cash
equivalents $ 3,728 $ 4,995 $ 3,728 $ 4,995
--------- --------- --------- ---------
--------- --------- --------- ---------


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



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