Texada Software Inc.

Texada Software Inc.

May 03, 2007 09:53 ET

TEXADA Software Announces First Quarter, 2007 Results

- New major customer signed - Significant order backlog building - Revenue down 2%, Gross Margin up 2% - Net Loss reduced by 38%

TORONTO, ONTARIO--(CCNMatthews - May 3, 2007) - Texada Software Inc., "Texada", (TSX VENTURE:TXS), announces un-audited financial results for the quarter ending March 31, 2007.

The Company recognised total revenues of $1,027,424 resulting in an operating loss before amortization, interest expense, foreign exchange, stock based compensation expense, severance expense and income taxes of $328,339. Net loss was $457,412 and gross margin was 86.6%. These results compared to total revenues of $1,048,953 and an operating loss before amortization, interest expense, foreign exchange, stock based compensation expense, severance expense and income taxes of $302,204, net loss of $732,999 and gross margin of 84.9%for the same quarter in 2006.

"Our first quarter has set us up well for the remainder of the year. We signed a new major customer, with over 200 rental locations, which, when installed later this year, will be instantly among our top 5!" said Don Whitbeck, CEO of Texada." We have also built a solid backlog of orders for our new software, expected to begin delivery later this year. Going into our 2nd quarter, we have an order backlog greater than any time in the company's history".

In late 2005, the company announced a substantial increase in R & D expenditures to invest in its core products. In Q1, 2007, R& D expenses totaled $523,210 as compared to $525,776 in Q1, 2006 and $147,410 in Q1, 2005 The Company expects a higher level of R & D spending to continue for the next several quarters.

The Company's financial results are presented below:

Thousands of Canadian Dollars
(except per share amounts) Three Months Ended March 31st
2007 2006
Revenue 1,027 1,049
Operating Income / (Loss) (328) (302)
Loss for the Period (457) (733)
Loss per share (0.01) (0.03)

More information may be found at www.sedar.com

About Texada Software (TXS: TSX Venture Exchange)

Texada Software Inc. is the premier provider of SYSTEMATIC enterprise software solutions for mobile equipment and rental management. Texada's solutions are fully flexible and scalable to meet the unique needs of any sized operation and are backed by proven implementation, services and support.

Texada's market-driven software products combine knowledge and best practices from over 400 customers worldwide, resulting in solutions that manage the complete asset life-cycle from acquisition through to disposal. Our customers enjoy the benefits of enhanced efficiency through better asset utilization, effective location tracking, and optimized scheduling.

Texada can be reached at 1-800-361-1233 or +1-519-836-7073, or on the internet at www.texadasoftware.com For product and services information visit www.systematic.com.

This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors should consult Texada's ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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