Edmonton, Alberta, July 15, 2010 – Titan Logix Corp., (TSX Venture: TLA), today reported its unaudited
financial results for the third quarter of its fiscal 2010 ended May 31, 2010.
Summary of Sales Revenue, Gross Profit and Net Loss:
Sales for the third quarter ended May 31, 2010 were $1,556,469, down $52,769 from $1,609,238 in the
third quarter of the previous fiscal year. Gross profit in the three month period was $585,722 (38%
margin) compared to $618,201 (38% margin) and net loss and comprehensive loss was $84,663 this
period compared to net loss of $235,052 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, 2010, were $4,444,983,
37% lower than sales of $7,059,865 in the first nine months of fiscal 2009. The company’s gross profit in
this nine month period was $1,465,026 (33% gross margin) compared to $3,031,621 (43% gross margin)
in the comparable period of fiscal 2009. Net loss and comprehensive loss was $621,369, ($-0.02 per
diluted share), in the nine month period, ended May 31, 2010, compared to earnings of $566,047 ($0.02
per diluted share) in the comparable nine month period of the previous fiscal year.
Titan’s board and management report the following in its third quarter’s Management Discussion and
Analysis. “The momentum toward recovery from the global economic recession and consequential
increase in oil well drilling activity in Western Canada has resulted in an increase in sales for the third
quarter ending May 31, 2010 from the previous quarters of fiscal 2010 with the last two months of our
third quarter bringing a close to breakeven position for those months. Our customers are showing signs
of confidence to increase their capital spending which is benefiting top line revenue across the Company.“
Summary of Operating Expenses:
Total expenses for the third quarter of fiscal 2010 were $670,938, lower by 28% from $931,988 in the
same period a year ago. General and administration expenses were $283,012, 11% lower than the
$317,255 recorded in the third quarter of the previous fiscal year. This reduction is primarily due to lower
consulting fees, insurance premiums, travel costs and employee compensation. Product development
expense was $141,542 compared to $151,863 in the comparable period of the previous fiscal year.
Marketing and sales expense decreased from $357,912 in the previous fiscal year’s third quarter to
$230,289 in this year’s third quarter.
Year to date, in the nine month period of this fiscal year, ended May 31, 2010, total expenses were
$2,093,226 compared to $2,270,107 in the nine month period of the previous fiscal year. General and
administrative expenses were 22% lower due mainly to Titan’s focus on cost control which includes
reducing planned expenditures by optimizing staff, reducing employee benefits and reducing discretionary
spending wherever possible. Product development expenses for the nine month period of this fiscal year,
ended May 31, 2010, were $404,058 compared to $29,669 in the previous fiscal year. The previous
year’s substantially lower product development expenses were primarily due to recording a recovery of
$315,410 from scientific research and experimental development (SR&ED) claims for 2006, 2007 and
2008. For the nine month period, ended May 31, 2010, marketing and sales expenses were 36% lower
than in the nine month period of the previous fiscal year. Employee compensation, sales training and
advertising and trade show expenses were lower in the current nine month period of fiscal 2010 than in
the nine month period of the previous fiscal year. Marketing and sales programs were maintained
commensurate with the level of market activity.
At May 31, 2010, working capital was $3,209,124 compared to the August 31, 2009 year-end balance of
$3,835,745. Cash and cash equivalents were $908,299 compared to $1,326,487 at the end of fiscal 2009.
Titan does not have any debt except for trade payables.
Outstanding Share Summary:
The common shares of Titan Logix Corp. trade on the TSX Venture Exchange under the symbol TLA. At
July 7, 2010, Titan had 24,883,440 common shares issued and outstanding.
Titan Logix Corp.’s unaudited financial statements and management’s discussion and analysis for the
third quarter of fiscal 2010 as well as its audited financial statements and management’s discussion and
analysis for its fiscal year ended August 31, 2009 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.
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.
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.
Les J. Evans, President and Chief Executive Officer
Ph: (780) 462-4085
TSX Venture, TLA
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