Business & Finance
Wed, June 2, 2010Tue, June 1, 2010Mon, May 31, 2010Fri, May 28, 2010Thu, May 27, 2010Wed, May 26, 2010Tue, May 25, 2010Epic Data Announces Second Quarter Results
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Published in Business and Finance on Thursday, May 27th 2010 at 16:10 GMT by Market Wire🞛 This publication is a summary or evaluation of another publication
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 27, 2010) - Epic Data International Inc. (TSX VENTURE:EKD) (the "Company" or "Epic Data"), 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, 2010.
Results of Operations
All amounts in 000's of Canadian dollars, except per share figures
| Three months | Six months | |||
| ended March 31, | ended March 31, | |||
| 2010 | 2009 | 2010 | 2009 | |
| Revenue | $ 1,079 | $ 1,617 | $ 2,551 | $ 3,428 |
| Cost of sales | 554 | 721 | 1,236 | 1,607 |
| 49% | 55% | 52% | 53% | |
| Gross margin | 525 | 896 | 1,315 | 1,821 |
| Selling, general and administration | 842 | 860 | 1,574 | 1,747 |
| (Loss) income before undernoted items - EBITDA | (317) | 36 | (259) | 74 |
| Other expenses | 124 | 113 | 192 | 95 |
| Net loss for the period | $ (441) | $ (77) | $ (451) | $ (21) |
| Net loss per share - Basic and diluted | $ (0.03) | $ (0.01) | $ (0.03) | $ (0.00) |
EBITDA is not a term defined under generally accepted accounting principles ("GAAP") however, it is used by investors in assessing performance of the Company and its ability to generate sufficient cash flows to continue as a going concern. As this term is not defined under GAAP it may not be comparable to similar terms used in documents of other public entities. The Company defines EBITDA as earnings from operations before interest expense, interest income, income taxes, amortization of property, plant and equipment, compensation costs related to stock options, severance costs and certain other non-recurring expenses and income items.
Results of Operations
Revenue
Total revenue for the three months ended March 31, 2010 decreased $538 thousand or 33% to $1.1 million compared with $1.6 million in the same period last year. Total revenue for the six months ended March 31, 2010 decreased $877 thousand or 26% to $2.6 million compared with $3.4 million in the same period last year. The decrease in revenue for both periods was due mainly to the continued curtailed spending by our customers and the stronger Canadian dollar.
Gross Margin
The total gross margin for the three months ended March 31, 2010 decreased $371 thousand or 41% to $525 thousand as compared with $896 thousand in the same period last year. The total gross margin for the six months ended March 31, 2010 decreased $506 thousand or 28% to $1.3 million as compared with $1.8 million in the same period last year. The decrease was due to the lower level of revenue.
The gross margin as a percentage of revenue for the three months ended March 31, 2010 decreased to 49% compared with 55% in the same period last year, while for the six months ended March 31, 2010 decreased to 52% compared with 53% in the same period last year. The decrease was due mainly to lower productivity, especially in professional services, with fixed costs and lower revenue.
Selling, general and administration ("SG&A")
SG&A expenses for the three months ended March 31, 2010 decreased $18 thousand or 2% to $842 thousand compared with $860 thousand in the same period last year, which is net of $172 thousand in certain non-recurring recoveries. SG&A costs directly attributable to product development, which consist primarily of employee compensation costs as well as sub-contracted design and development services, increased to $144 thousand in the current quarter from $57 thousand in the same quarter last year.
SG&A expenses for the six months ended March 31, 2010 decreased $170 thousand or 10% to $1.6 million compared with $1.7 million in the same period last year, which is net of $360 thousand in certain non-recurring recoveries, including the recovery of a receivable previously written off. SG&A costs directly attributable to product development, which consist primarily of employee compensation costs as well as sub-contracted design and development services, increased to $268 thousand in the six months to date from $197 thousand in the same period last year.
The decrease in SG&A in both periods is due to cost reductions, which include staff reductions.
EBITDA
EBITDA for the three months ended March 31, 2010 decreased $353 thousand to negative EBITDA of $317 thousand compared with positive EBITDA of $36 thousand for the same period last year. EBITDA for the six months ended March 31, 2010 decreased $333 thousand to negative EBITDA of $256 thousand compared with positive EBITDA of $74 thousand for the same period last year.
The decrease in EBITDA in both periods resulted from the decrease in revenue.
Other expense (income)
| Three months ended | Six months ended | |||
| March 31, | March 31, | |||
| All amounts in 000's of dollars | 2010 | 2009 | 2010 | 2009 |
| Stock based compensation | $ 5 | $ 6 | $ 10 | $ 12 |
| Foreign exchange loss (gain) | 51 | (29) | 73 | (94) |
| Severance cost | 41 | 76 | 46 | 66 |
| Amortiztion of property, plant and equipment | 12 | 25 | 37 | 52 |
| Interest expense, net | 15 | 28 | 29 | 44 |
| Interest accretion | - | 7 | - | 15 |
| $ 124 | $ 113 | $ 195 | $ 95 | |
Net income
Net loss for the three months ended March 31, 2010 was $441 thousand compared to a net loss of $77 thousand in the same period last year. Net loss for the six months ended March 31, 2010 was $451 thousand compared to a net loss of $21 thousand in the same period last year.
Financing Activities
During the second quarter we closed two private placements for total gross proceeds of $995,000. Robert Nygren, President and CEO of the Company, was the lead investor in the first private placement, while the second financing transaction brought in a new investor to help us execute on our strategic initiative to market our solutions to manufacturers in China.
About Epic Data
For over 30 years Epic Data has delivered real-time shop floor information to the world's most progressive discrete manufacturers through turnkey data collection, warehouse management and lean manufacturing operations management solutions. Defense contractors, aerospace, automotive, high technology and industrial equipment and machinery manufacturers, employ Epic Data solutions to optimize the return on investment of their manufacturing information technology infrastructure investments and operations by increasing plant productivity, materials visibility and production velocity. Customers include Lockheed Martin, Bell Helicopter, Komatsu, Learjet, CAE Inc., Kingfisher plc (B&Q), Joy Mining Machinery, Cobham Defence Communications Ltd., GE Aircraft Engine, Contour Premium Aircraft Seating, McBride plc, Phoenix Contact, Rolls-Royce and Volvo.
More 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.
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.
