Edmonton, Alberta, July 16, 2008 – Titan Logix Corp., (TSX Venture: TLA) released its unaudited financial results for the third quarter of fiscal 2008 ended May 31, 2008 and provided a corporate update.

Summary of sales revenue, gross profit and net income:

Total revenues improved by 17 percent during the third quarter of fiscal 2008 to $2,160,175 compared to $1,844,789 in the third quarter of fiscal 2007. Year to date sales for the first three quarters of fiscal 2008 ended May 31, 2008 were down by 6% to $5,835,098 compared to $6,193,496 in the first three quarters of fiscal 2007. The gross profit in the third quarter of fiscal 2008 was higher by 5% to $863,101 compared to $821,050 in the third quarter of fiscal 2007. Titan’s net earnings for the quarter, before and after income tax were 14% higher than in the third quarter of the previous fiscal year. They rose from $103,350 to $118,259. Year to date, for the nine month period ended May 31, 2008, the gross profit was $2,166,544 compared to $2,640,123 in fiscal 2007 and the net loss for this nine month period was $76,404 compared to earnings of $647,779 in the nine month period of fiscal 2007.

Quarterly Results Summary

Fiscal year 2008 2007 2006
C$ (000’s except share amounts) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
Sales 2,160 1,607 2,068 2,729 1,845 2,059 2,289 1,941
Gross profit 863 539 764 1,436 821 886 933 784
Earnings(loss)before income taxes 118 (212) 17 613 103 242 303 205
Net earnings (loss) 118 (206) 11 2,282 103 242 303 205
Basic earnings (loss) per share 0.00 (0.01) 0.00 0.10 0.00 0.01 0.01 0.01
Diluted earnings (loss) per share 0.00 (0.01) 0.00 0.09 0.00 0.01 0.01 0.01

Summary of operating expenses:

Product development expenses in the third quarter of fiscal 2008 were $97,984 as compared to $98,696 for the same period of the previous year. For the nine month period, ended May 31, 2008 product development expenses were $281,719 compared to $297,884 in fiscal 2007. Titan has deferred costs associated with the development of certain products in the amount of $149,922 in the third quarter of fiscal 2008 and the amount of $405,600 in the year to date financials of fiscal 2008 as they meet the Canadian generally accepted accounting criteria for deferral of development costs.

Advertising and trade show expenses accounted for the increases in sales and marketing expenses. They went from $274,245 in 2007 to $298,493 in 2008 for the third quarter ended May 31. Year to date, the increase was from $786,886 in fiscal 2007 to $877,378 in fiscal 2008 for the nine month period.

Higher audit fees, insurance premiums, travel expenses, and employee remuneration caused general & administrative expenses to go from $296,399 for the three month period ended May 31, 2007 to $335,362 in 2008, and from $887,547 for the nine month period ended May 31, 2007 to $992,786 in 2008. We had a gain on foreign currency (U.S.) exchange of $12,885 in the third quarter of fiscal 2008 versus a loss of $63,851 in fiscal 2007. For the nine month period, ended May 31, 2008, loss on foreign currency (U.S.) exchange was $60,010 compared to $32,885 in the same nine month period of fiscal 2007.

Summary of liquidity and capital resources:

At the end of Titan’s third quarter on May 31, 2008, working capital was $4,046,620 compared to the August 31, 2007 fiscal year end balance of $4,640,748. Cash and cash equivalents were $1,429,333 on May 31, 2008 compared to the August 31, 2007 fiscal year end balance of $1,682,841. Titan does not have any debt except for trade payable.

Summary of our focus and initiatives – A corporate update:

Titan’s initiatives revolve around the fundamental belief that success will come from further penetrating its traditional markets and developing its products for additional niche markets.

“New product design and development plays a critical role in our strategic plan”, stated Les Evans, President and Chief Executive Officer of Titan Logix Corp. “A good example of this is our recent introduction of the first in a family of new guided wave radar products for mobile applications in niche markets. Our plan is to release the Deice- Stik™ (patent pending) in early fiscal 2009 (Sept. /Oct. 2008). We recognized the need for a more accurate, cost-saving, spill preventing, and low-maintenance fluid management solution for a particular segment of the aviation service industry. Deicing and anti-icing fluid are typically applied from trucks onto an aircraft. There are high costs and major time delays associated with faulty equipment. Titan’s Deice-Stik™ will be the ideal solution for this specialized market”.

Titan Logix Corp.’s V.P. of Engineering and Business Development, Greg McGillis, P.Eng, EE, adds, “Titan’s guided wave radar solutions will be superior to the technology currently used in other niche markets as well. Our management team has made a commitment to pursue these specialized markets in our growth strategy. We are developing several new products to meet the needs of other niche markets in the mobile tanker industry. We expect field trials for some of these products to begin in early fiscal 2009”.

Titan’s traditional markets, that saw a decline through the first half of this fiscal year, are recovering to some extent. There is a rise in operating activity in the oil and gas industry in Alberta. Titan’s efforts to expand into new markets in both Canada and the U.S. are continuing.

Outstanding share summary:

The common shares of Titan Logix Corp. trade on the TSX Venture exchange under the symbol “TLA”. At May 31, 2008, Titan had 24,713,440 common shares issued and outstanding.

Additional Information:

Titan Logix Corp.’s unaudited financial statements, management discussion and analysis for the third quarter of fiscal 2008, and its 2007 annual report are available on SEDAR at www.sedar.com and on the company’s website at www.titanlogix.com.

About Titan Logix Corp.:

Titan Logix Corp. is an advanced technology industrial instrumentation and controls company. We focus on designing, manufacturing, distributing and servicing instrumentation and automation solutions. These are primarily for the oil and gas and transportation industries. For many years, these industries have relied on manual intervention. However, the need has arisen for automation, which has accelerated the demand for our products. The products we specialize in are:

  • Guided wave radar liquid gauging and control systems for mobile tankers;
  • Electronic burner management systems for atmospheric industrial heaters;
  • Mechanical and electronic liquid level gauging systems for storage tanks and process vessels; and
  • Communication and control systems capable of remote telemetry and management of site processes.

Detailed information on Titan Logix Corp. is available on the company’s website www.titanlogix.com

This news release contains forward-looking information and statements that involve risks and uncertainties. The actual results, performance or achievements of Titan Logix Corp. may differ materially from the results, performance or achievements of Titan Logix Corp. expressed or implied by such forward-looking statements. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information:
Aniz Pisani,
Investor Relations and Corporate Communications Coordinator
Ph: (780) 462-4085
Email: invest@titanlogix.com
TSX Venture, TLA
 

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