VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb 27, 2013) - 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 $555,000, completed shortly after the quarter end, the proceeds of which were used to complete the Company''s required capital contribution for its investment in the Epic-HUST joint venture company in China.
|Results of Operations|
|For the three months ended|
|Cost of sales||919,635||405,438|
|General and administration||622,634||515,931|
|Sales and marketing||404,653||388,054|
|Net finance costs||88,171||308,702|
|Loss per share - Basic and diluted||$||(0.03||)||$||(0.03||)|
Results of Operations for the three months ended December 31, 2012 compared with 2011
Revenue 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.
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 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 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.