Epic Data Announces Profitable Results for the Year and Quarter ended September 30, 2008
January 19, 2009
VANCOUVER, BRITISH COLUMBIA — Epic Data International Inc. (TSX-V: EKD), a provider of collaborative manufacturing optimization and visibility solutions, today announced the financial results for its fourth quarter and fiscal year ended September 30, 2008. All figures are quoted in Canadian dollars.
2008 Highlights
- Revenue for 2008 of $11.2 million up from $11.1 million in 2007, of which $4.8 million related to a single customer
- EBITDA for 2008 of $0.9 million up from a loss of $0.3 million in 2007
- Net income for 2008 of $0.4 million ($0.03 per share) which was on par with the $0.4 million ($0.03 per share) in 2007
- Cash flow from operations for 2008 of $0.4 million up from negative cash flow of $1.5 million in 2007
- Cash on hand at September 30, 2008 of $1.2 million up from $0.7 million at the end of fiscal 2007
- Successfully completed a $4.8 million project with a major defense contractor using IntegraNet™ application and MPT9600 terminals
- Appointment of Robert Nygren as President & CEO
- Appointment of Alex Sventitsky as Vice President, Sales
- Launch of Epic Data MPT 9600 Shop Floor Kiosk product in August 2008
- Release of MXE 2.0 data collection platform in May 2008 (application now branded IntegraNet™)
- Successful deployment of MMS material visibility application for a major mining and construction heavy equipment manufacturer (application now branded IntegraMV™)
Fourth Quarter Highlights
- Revenue of $3.8 million up from $2.7 million in Q4 2007, of which $2.3 million related to a single customer
- EBITDA of $0.8 million up from to $0.2 million in Q4 2007
- Cash flow from operations of $1.3 million up from $0.4 million Q4 2007
Results of Operations
Below is the selected financial information for the three months and year ended September 30, 2008.
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, interest accretion, severance and other non-recurring expenses and income items.
Fiscal 2008 Results
In 2008 revenue increased slightly over 2007, due to a $4.8 million upgrade project for a major defense contractor customer, however there was a dramatic decrease in expenses as a result of prudent cost cutting measures. These measures resulted in the Company reporting positive EBITDA for the first time in 5 years. While implementing the cost reductions, the Company maintained its ability to develop new products, enhance existing products, execute its sales strategy and deliver high quality service to its customers. Cash and working capital management was a significant issue in fiscal 2008 and both showed significant improvement by year end. Cash flow from operations increased to $0.4 million, an increase of $1.9 million over 2007 and the cash balance at September 30, 2008 was $1.2 million, an increase of $0.4 million from 2007.
“The delivery of positive operating earnings and net income in fiscal 2008 represents a significant achievement for Epic Data,” commented Robert Nygren, President & CEO. “Our prudent focus on cost control and cash management positions Epic Data well for uncertain economic conditions. With a strong customer base of market leading manufacturers, Epic Data will continue to deepen these relationships in fiscal 2009 by expanding our offering of high-integrity, robust efficiency solutions for manufacturing operations,” added Nygren.
Fourth Quarter Results
Revenue for the fourth quarter of 2008 increased $1.1 million or 43% to $3.8 million compared with $2.7 million in the prior year due to revenue of $2.3 million recognized from a single upgrade project for a major defense contractor customer. The increased revenue resulted in EBITDA for the fourth quarter $0.8 million compared, the largest EBITDA for a quarter since the first quarter of fiscal year 1999. Net income for the three months ended September 30, 2008 decreased $0.5 million to $0.6 million compared with $1.1 million for the prior year. The net income in 2008 was the resulted from improved operations with higher revenue and lower operating expenses, offset by the other expense charges, whereas in 2007 the net income was almost all attributed to the other income item.
About Epic Data International Inc.
For over 30 years Epic Data has been a leader in collaborative manufacturing optimization, visibility and data collection solutions to the world’s most progressive complex manufacturing organizations. Defense contractors, aerospace, automotive, high technology and industrial equipment & machinery manufacturers employ Epic Data solutions to optimize the ROI of their manufacturing IT infrastructure investments and operations by increasing plant and people productivity, plant to enterprise visibility and time to value.
Information about Epic Data is available at www.epicdata.com
Note: Forward-looking statements in this news release are based on current expectations of management. Epic Data cautions investors that, due to risks and uncertainties, actual events may differ materially from current expectations.
The contents of this news release have neither been approved nor disapproved by any regulatory authority.
For Information contact:
Robert Nygren
President & CEO
Epic Data International Inc.
Robert.nygren@epicdata.com
604-273-9146
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