Epic Data Announces Q1 Results

Epic Data Announces Q1 Results 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/27/13 -- Epic Data
International Inc. (TSX VENTURE:EKD), a provider of manufacturing
execution systems (MES) today announced the results of operations for
the three months ended December 31, 2012. 
Highlights for the quarter ended December 31, 2012 include: 


 
--  The first sale of the newly developed UniView hardware terminal to a
    significant US based aerospace and defense company; 
--  The completion of several small projects in China; 
--  Working capital financing of approximately $240,000 from related
    parties; and 
--  A term loan financing for $555,000, completed shortly after the quarter
    end, the proceeds of which were used to complete the Company's required
    capital contribution for its investment in the Epic-HUST joint venture
    company in China.
      
 
Results of Operations                                                       
                                                 For the three months ended 
                                                               December 31, 
                                                       2012            2011 
                                              --------------  --------------
                                                                            
Revenue                                        $  1,173,418    $    869,503 
                                                                            
Cost of sales                                       919,635         405,438 
----------------------------------------------------------------------------
                                                                            
Gross Margin                                        253,783         464,065 
----------------------------------------------------------------------------
                                                                            
Expenses                                                                    
  General and administration                        622,634         515,931 
  Sales and marketing                               404,653         388,054 
  Product development                               387,545         252,845 
  Net finance costs                                  88,171         308,702 
  Other expenses                                      1,024           5,179 
----------------------------------------------------------------------------
                                                                            
                                                  1,504,027       1,470,711 
----------------------------------------------------------------------------
                                                                            
Net loss                                         (1,250,244)     (1,006,646)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Loss per share - Basic and diluted             $      (0.03)   $      (0.03)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
Results of Operations for the three months ended December 31, 2012
compared with 2011 
Revenue 
Revenue for the three months ended December 31, 2012 increased
$303,915 or 35% to $1,173,418 compared with $869,503 in the same
period of the prior year. The increase in revenue was due to
primarily to revenue from the Epic-HUST JV in China, which completed
several small projects in the quarter accounting for $232,438 of the
increase. In addition, the Epic-HUST JV is working on a number of
other projects which involve the rendering of services, however
certain elements required to allow revenue to be recognized have not
yet been met so no revenue has been recorded for these projects. 
Gross Margin 
The gross margin for the three months ended December 31, 2012
decreased $210,282 or 45% to $253,783 as compared with $464,065 in
the same period of the prior year. The decrease was due to the fact
that the costs associated with certain projects in progress in the
Epic-HUST JV in China have been expensed in the accounts while the
associated revenue has not yet been recognized. 
General and administration 
General and administration expenses for the three months ended
December 31, 2012 increased $106,703 or 21% to $622,634 compared with
$515,931 in the same period of the prior year. The increase is due to
the start-up operations in China. 
Sales and marketing 
Sales and marketing expenses for the three months ended December 31,
2012 increased $16,599 or 4% to $404,653 compared with $388,054 in
the same period of the prior year. The increase is due to the
start-up operations in China which accounted for an increase of
134,167, offset by lower costs in Canada and the United Kingdom,
primarily compensation. 
Product development 
Product development expenses for the three months ended December 31,
2012 increased $134,700 or 53% to $387,545 compared with $252,845 in
the same period of the prior year. The increase is due to the
development of the UniView, our new shop floor terminal that supports
browser-based web applications and high security, and the continued
development of our Integra suite of MES solutions. 
Net finance charges 
Net finance charges for the three months ended December 31, 2012
decreased $220,531 or 71% to $88,171 compared with $308,702 in the
same period of the prior year. The decrease is due to the interest
accretion of $243,586, which was primarily related to the repayment
of debt in the prior year, and higher interest charges on new debt in
the current period. 
Net loss 
Net loss for the three months ended December 31, 2012 increased
$243,598 or 24% to $1,250,244 compared with $1,006,646 in the same
period of the prior year as a result of the start-up operations in
China, which had an increased loss of $526,223, offset by lower
interest charges and slightly better results in the United States and
the United Kingdom. 
Grant of Stock Options 
The Company announces that it has granted 75,000 stock options to
non-management directors. The term of the options will be 7 years and
the exercise price will be the greater of the closing price on
February 28, 2013 or $0.10 per share. 
About Epic Data 
Epic Data International Inc. has produced manufacturing execution and
warehouse management solutions for nearly 40 years. Epic Data
solutions synchronize supply chain and production activities to
achieve real-time visibility of manufacturing metrics that reduces
cycle times and costs, optimizes production planning and control, and
boosts quality and efficiency. The solutions are easily implemented
either by module or as a completely integrated solution suite across
the global enterprise. Customers include Beechcraft, Lockheed Martin,
Bell Helicopter, Komatsu, Bombardier Learjet, CAE Inc., Kingfisher
(B&Q) plc, 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. 
Contacts:
Epic Data International Inc.
Robert Nygren
President & CEO
604-273-9146
robert.nygren@epicdata.com
www.epicdata.com
 
 
Press spacebar to pause and continue. Press esc to stop.