Edmonton, Alberta, January 20, 2021 – Titan Logix Corp., (TSX Venture: TLA) (“Titan” or the “Company”), a technology company specializing in advanced technology fluid management solutions, announces its results for the first quarter ended November 30, 2020.
Q1 FISCAL 2021 HIGHLIGHTS
- Revenues for the first quarter of fiscal 2021 ending November 30, 2020 were $849,184, a $559,192 or a 40% decrease from the $1,408,376 recorded in the comparative period. Revenues were impacted by the decline in global oil prices, combined with the lack of access to markets in Canada, and the continued impact of the COVID-19 pandemic.
- Gross profit for the first quarter of fiscal 2021 decreased by $358,043 to $381,173 or 45% of revenue compared to $739,216 or 52% of revenue in the comparative prior period. This decrease in gross profit is primarily due to the decrease in unit demand and the reduction in revenue. The reduction in gross margin as a percentage of sales is primarily due to underutilized capacity costs included in cost of sales.
- Total expenses in the first quarter of fiscal 2021 were $682,143 as compared with $843,411 in the comparative prior period. This reduction in expenses is primarily due to benefits received of $89,982 from the Company’s continued participation in the Canada Emergency Wage Subsidy Program (“CEWS”) combined with cost savings realized from cost containment efforts implemented in fiscal 2020, which included wage reductions and cuts on discretionary spending. The Company continued with its product enhancements including the development of IIoT solutions. Sales and marketing programs focused on expanding applications through product differentiators and reaching new customer channels with digital platforms.
- The Company reported an operating loss before other items of $300,970 compared to an operating loss of $104,195 in the first quarter of fiscal 2020. Adjusted for interest income and other items, the net loss after income taxes for the first quarter of fiscal 2021 was $142,488 compared to net earnings after taxes of $69,060 in the prior period. The operating loss before other items and the loss and after income taxes in the current fiscal quarter was due to the decrease in sales and gross profit and was positively impacted by the reduction in total expenses which included the receipt of COVID-19 related government subsidies combined with cost containment efforts implemented in fiscal 2020.
“We are on the path to grow Titan’s revenue. The need for data and the sensor technology creating the data, remains strong. Despite the pandemic, global investment in IoT technology doubled in the first 3 quarters YTD for 2020 rising to 13.9 billion vs 6.7 billion in all of 2019. We are strategically positioned to support digital supply chain management by developing hardware and software solutions that solve real world problems for our clients.” said CEO, Alvin Pyke. “For this coming year, our focus will be to improve our traditional sales pipeline and execute on our strategic plan.”
The Company’s unaudited condensed consolidated interim financial statements and the management’s discussion and analysis (“MD&A”) which includes the Company’s Business Outlook, for the first quarter ended November 30, 2020, are available on SEDAR at www.sedar.com and the Company’s website, www.titanlogix.com.
About Titan Logix Corp.:
Titan Logix focuses on providing data driven solutions for Supply Chain Management (SCM) of goods and service supplied to the oil and gas, transportation and construction industries. Titan’s telematics products enable data from its mobile level sensor technology to be collected, managed and packaged for business intelligence and control.
Titan’s products are designed to be a part of a complete SCM solution. The ultimate solution consists of Titan’s products integrated with best-in-class data management to enable end-to-end Internet of Industrial Things (IoIT) solutions for its customers’ SCM.
Founded in 1979, Titan Logix Corp. is a public company listed on the TSX Venture 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.
Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our Management Discussion and Analysis in respect of the year ended August 31, 2020 which is available at www.sedar.com. In addition, the occurrence of pandemics, such as the recent outbreak of the novel coronavirus COVID-19 in any of the areas in which the Company, its customers or its suppliers operate could cause interruptions in the Company’s operations. In addition, pandemics, natural disasters or other unanticipated events could negatively impact the demand for, and price of, oil and natural gas which in turn could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.
Chief Executive Officer
Ph: (780) 462-4085
TSX Venture, TLA