EDMONTON, Alberta, July 20, 2017 (GLOBE NEWSWIRE) -- Titan Logix Corp., (TSX Venture:TLA) (“Titan” or the “Company”), a high technology company specializing in advanced technology fluid management solutions, announces its results for the third quarter ended May 31, 2017.
| Financial Highlights Summary | ||||||||||||
| (in Canadian dollars) | ||||||||||||
| Three months ended | Nine months ended | |||||||||||
| May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |||||||||
| Revenue | $ | 827,950 | $ | 743,622 | $ | 2,523,754 | $ | 3,266,521 | ||||
| Gross profit (GP) | $ | 258,042 | $ | 98,523 | $ | 879,816 | $ | 877,695 | ||||
| GM % | 31 | % | 13 | % | 35 | % | 27 | % | ||||
| Operating loss before other items and income tax | $ | (381,259 | ) | $ | (1,106,235 | ) | $ | (1,086,304 | ) | $ | (2,609,750 | ) |
| Net loss before income tax | $ | (335,991 | ) | $ | (1,062,777 | ) | $ | (644,120 | ) | $ | (2,496,990 | ) |
| Net loss | $ | (335,991 | ) | $ | (799,112 | ) | $ | (644,120 | ) | $ | (1,808,772 | ) |
| EPS (diluted) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.07 | ) |
| Financial Position | As at May 31, 2017 | As at August 31, 2016 | ||
| Working capital | $ | 15,099,958 | $ | 15,860,627 |
| Total assets | $ | 17,059,271 | $ | 17,701,465 |
| Long-term liabilities | $ | 28,309 | $ | 91,058 |
| Total equity | $ | 16,517,782 | $ | 17,042,206 |
“Our traditional market has stabilized and we see signs of recovery based on increased customer interest in product investments,” said CEO, Douglas Carruthers. “Our new Gateway telematics introduction to the market is progressing well. Additionally, product development activity has completed a critical milestone on Titan’s next generation digital Guided Wave Radar product and market introduction is expected by the end of fiscal 2018’s second quarter.”
QUARTERLY HIGHLIGHTS
- Revenues were $827,950 for the third quarter of fiscal 2017 ended May 31, 2017, in line with the revenues of each of the last two quarters, which were $872,145 and $823,659 respectively.
- Gross profit as a percentage of sales has significantly improved and been maintained as compared with the prior year. The gross margin for the third quarter of fiscal 2017 was 31% compared to the fiscal 2016 comparable third quarter’s gross margin of 13%
- Due to management’s cost reduction initiatives, operating expenses for the third quarter of fiscal 2017 decreased by 47% to $639,301 compared to the fiscal 2016 comparable third quarter’s expenses of $1,204,758.
- The decrease in operating expenses and improvement in gross profit resulted in a 58% decrease in the net loss for the third quarter of fiscal 2017 to $335,991 compared to the fiscal 2016 comparable third quarter’s net loss of $799,112.
- Ongoing product development efforts continued to yield positive results on the evolution of Titan’s next generation of Guided Wave Radar (GWR) products. As well, in June 2017 engineering successfully completed the development of the Titan Gateway telematics offering. This new product is being released in the last quarter of fiscal 2017.
In fiscal 2017’s third quarter TD80 and ancillary product sales, the Company’s Guided Wave Radar signature product line, improved slightly compared to the third quarter of fiscal 2016, however are still materially lower than eight quarters ago. The Company’s quarterly revenues and operating loss for the last eight quarters continue to reflect the negative impact of lower oil and gas prices and the subsequent collapse in demand for new crude oil tankers. Revenues for the first nine months of fiscal 2017 decreased by 23% to $2,523,754 from sales of $3,266,521 in the comparative period.
The net loss after income taxes was $335,991 in the third quarter of fiscal 2017 and $644,120 for the first nine months of fiscal 2017. This compares to a net loss of $799,112 and $1,808,772 respectively, in the comparative prior periods. The significant 58% and 64% reductions in the net loss in the respective current quarter and year-to-date were primarily due to the reduction in total expenses and improved gross profit, combined with the year-to-date impact of the $310,963 gain on the sale in the first quarter of the TPZ 3310 and 3500 controller product line. In the current quarter and year-to-date the Company did not record a provision for income tax recoveries due to uncertainties related to the realization of tax loss carryforwards, whereas, losses in the comparative prior periods were reduced by income tax recoveries of $263,665 in the third quarter and $688,218 for the nine-month period of fiscal 2016.
The Company's unaudited interim condensed consolidated financial statements and the management's discussion and analysis ("MD&A") which includes the Company’s Business Outlook, for the third quarter ended May 31, 2017, are available on SEDAR at www.sedar.com and the Company’s website, www.titanlogix.com.
About Titan Logix Corp.:
Founded in 1979, Titan Logix Corp. (“Titan” or “the Company”) is a developer, manufacturer and marketer of innovative fluid measurement and management solutions. The Company's products include Guided Wave Radar (GWR) gauges for level measurement and overfill prevention (particularly for use in mobile tanker applications), level gauges for storage tanks, and communication systems for remote alarming and control. Titan’s products are currently used in the oil and gas, waste fluid collection, chemical and aviation industries.
Titan’s products are part of a complete asset management solution. The full solution consists of Titan’s products integrated with best-in-class third party solutions to enable our complete fluid management throughout each stage of their fluid handling processes. This is captured by our slogan “Advanced Technology Fluid Management Solutions, In the Field, On the Road, In the Office” ™.
- In the Field: "In the Field" refers to Titan's solution offerings for storage tanks and process vessels.
- On the Road: "On the Road" refers to Titan's solution offerings for mobile tanker trucks and trailers.
- In the Office: "In the Office" refers to Titan's solution offerings that enable customers to monitor their fluid assets remotely from the convenience of their dispatch center or other back office environment through a wired or wireless connection.
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, 2016 which is available at www.sedar.com. 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.