Titan Digital Corporation

Titan Digital Corporation

November 01, 2005 09:00 ET

Titan Announces Fiscal 2005 Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 1, 2005) - Titan Digital Corporation ("Titan" or the "Company") (TSX VENTURE:TDI) announces its financial and operating results for the year ended June 30, 2005. The following is a summary only and should be read in conjunction with the financial statements and notes thereto along with the management discussion and analysis, both of which can be viewed at www.sedar.com. All financial amounts are expressed in thousands of Canadian dollars except per share amounts.

Summary of Financial Performance
Year ended June 30
2005 2004 Change

Revenue $ 2,367 $ 2,330 $ 37 2%
Gross profit 1,648 1,637 11 1%
Operating expenses 1,995 2,120 (125) (6)%
Funds used in operations (183) (121) (62) (51)%
Net loss (406) (488) (82) (17)%
Net loss per share - basic
and diluted (0.02) (0.03) (0.01) (33)%

Revenue for the year ended June 30, 2005 is up 2 % or $37. Instar division revenue increased $175 whereas K-PAR division revenue is down $159, primarily attributable to K-PAR UK operations. Cost cutting measures, including consolidating the K-PAR US operations, reduced operating expenses $125 from the prior year. The net loss of $406 represented an $82 improvement over the previous year.

During the year, the Company increased gross spending on research and development by $100. In November/December 2004, Titan was able to finance increased software development activities and generate additional working capital through a private placement of $330 principal amount of unsecured convertible redeemable debentures at conversion prices ranging from $0.10 to $0.30. The term of the debentures is 61 months.

Ongoing cost cutting measures include the consolidation of K-PAR UK operations.

In response to its dependence on the optical storage marketplace, Titan is working to expand its product offering beyond optical storage and into the traditional magnetic storage marketplace. Titan management believes that the Company has core-enabling technology that can be applied to the compliance storage marketplace. Proof of concept work is currently underway with potential delivery of first product in early calendar 2006.

About Titan

Titan is an international digital storage management company that develops and markets high performance archival storage management software, solutions and services. Titan was created to deliver innovative, simple, affordable and secure storage management solutions while ensuring accessibility to stored data throughout the information life cycle.

This release may contain certain forward-looking statements reflecting Titan Digital Corporation's current expectations in the technology business and sales and storage management software markets. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including without limitation, changes in market and competition, technological and competitive developments, and potential downturns in economic conditions generally.

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

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