Titan Logix Corp.
TSX VENTURE : TLA

Titan Logix Corp.

July 21, 2011 16:30 ET

Titan Logix Corp. Reports Record Third Quarter Sales

EDMONTON, ALBERTA--(Marketwire - July 21, 2011) - Titan Logix Corp., (TSX VENTURE:TLA), today reported its unaudited financial results for the third quarter of its fiscal 2011 ended May 31, 2011. Titan Logix Corp., an advanced technology industrial instrumentation and controls company, announced record sales of $3,012,969 for the third quarter ended May 31, 2011, a 94% increase compared with sales of $1,556,469 for the same period of fiscal 2010.

Summary of Sales Revenue, Gross Profit and Net Loss:

Gross profit in the three month period was $1,327,432 (44% margin) compared to $585,722 (38% margin) and net earnings and comprehensive earnings was $350,116 this period compared to net loss of $84,663 in the third quarter of the previous fiscal year.

Year to date, sales in the nine month period of this fiscal year, ended May 31, 2011, were $7,647,625, up by 72% from sales of $4,444,983 in the first nine months of fiscal 2010. The company's gross profit in this nine month period was $3,329,479 (44% gross margin) compared to $1,465,026 (33% gross margin) in the first nine months of fiscal 2010. Net earnings and comprehensive earnings was $442,908 ($0.02 per diluted share), in the nine month period, ended May 31, 2011, a material increase from the loss of $621,369 ($-0.02 per diluted share) in the comparable nine month period of the previous fiscal year.

Greg McGillis, President and Chief Operating Officer stated that "Improved market conditions have helped us execute our strategy, which has generated impressive sales revenue through the last three quarters. Cost controls over the last two years have enabled us to improve our margins, the benefits of which will be more fully realized in the coming fiscal year. We thank the Titan team for making this happen, with enthusiasm and commitment. These successes pave the way for the next phase of our strategic plan, as we expect these positive trends to continue into our next fiscal year."

Summary of Operating Expenses:

Year to date, in the nine month period of this fiscal year, ended May 31, 2011, total expenses were $2,903,584 compared to $2,093,226 in the nine month period of the previous fiscal year. General and administration expenses were $1,186,965 compared to $930,591 in the first nine month's of fiscal 2010. Engineering and development expense for the nine month period ended May 31, 2011 was $559,889 as compared to fiscal 2010's comparable period's expense of $404,058. Marketing and sales expenses were $1,006,416, compared to $689,836 in the previous year's first nine months. Changes in the value of the Canadian dollar and management of receipts from U.S. sales resulted in a loss of $98,218 on foreign currency exchange during the nine month period, ended May 31, 2011. This compares to a loss of $14,899 in the nine month period of the previous fiscal year.

Working Capital:

At May 31, 2011, working capital was $3,769,148 compared to the August 31, 2010 year-end balance of $3,346,447. Cash and cash equivalents were $1,226,140 compared to $1,140,810 at the end of fiscal 2010. Titan does not have any debt except for trade payables.

Business Outlook:

The mobile tanker original equipment manufacturers (OEMs) we sell TD80s (our guided wave radar mobile tank level measurement and control system) to are still backlogged in their new tanker fabrication anywhere from six to twelve months. This is a trend we have not experienced for many years, and has resulted in record TD80 sales and in future committed orders. We have increased our manufacturing capabilities to support this growth.

Additional Information:

Titan Logix Corp.'s unaudited financial statements and management's discussion and analysis for the third quarter of fiscal 2011 as well as its audited financial statements and management's discussion and analysis for its fiscal year ended August 31, 2010 are available on SEDAR at www.sedar.com and on the company's website, www.titanlogix.com

About Titan Logix Corp.:

Founded in 1979, Titan Logix Corp. has evolved into an advanced technology industrial instrumentation and controls company. We design, manufacture, distribute and service instrumentation, control and automation solutions. These technologies are used primarily in the oil and gas, transportation and aviation industries, which for many years have relied on manual intervention. However, due to rising costs, concerns and awareness about the environment, (including the importance of spill prevention) and technological advancements - to list but a few reasons – we expect an increased demand for our products. The products we specialize in comprise an essential part of a complete asset management solution in the following categories:

  • Transport Instruments: guided wave radar liquid gauging and control systems for mobile tankers;
  • Level and Flow Instruments: mechanical and electronic liquid level gauging systems for storage tanks and industrial process vessels;
  • Burner Controls: electronic burner management systems for atmospheric industrial heaters; and
  • Telemetry and Control Products: communication and control systems enabling remote telemetry and management of site processes.

Titan Logix Corp. is a public company listed on the Toronto Venture Stock Exchange and its shares trade under the symbol, TLA.

This news release contains certain statements with information that may be forward-looking and subject to unknown risks and uncertainties. The actual results, performance and achievements of Titan Logix Corp. may differ materially from the results, performance and achievements expressed or implied by such forward-looking statements. These forward-looking statements may not relate strictly to historical or current facts. They represent management's views as of the date of this press release and we assume no obligation to update them. We caution you not to place undue reliance on these forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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