EDMONTON, ALBERTA — (Marketwired) — 04/15/13 — Titan Logix Corp., (TSX VENTURE: TLA) (“Titan” or the “Company”), an advanced technology industrial instrumentation and controls company today reported its unaudited financial results for the second quarter of its fiscal 2013, ended February 28, 2013.
Financial results for the second quarter of fiscal 2013 reflect Titan Logix Corp.-s continued successful execution of its strategic plan (including a concerted effort to further penetrate the crude oil tanker market industry in the U.S.), its operational strength, and the ongoing customer demand for its oilfield fluid transport products.
Financial Highlights Summary
(in Canadian dollars)
Titan-s sales outside of Canada, primarily to the U.S., were $1,940,378 in this second quarter of fiscal 2013, an increase of 2% from sales of $1,895,369 in the second quarter ended February 29, 2012. This increase is a result of Titan-s concerted effort to further penetrate the fluid transportation tanker market in the U.S. with its TD80 product. Sales to the U.S. were 48% of Titan-s total revenue in the second quarter of fiscal 2013 compared to 45% in the comparable period of 2012. Sales in Canada for the quarter ended February 28, 2013 decreased by 10% to $2,123,020 from sales of $2,347,932 in the comparable period of fiscal 2012.
Total expenses for the first six months of fiscal 2013 were $2,014,875 compared to $2,143,688 in the same period a year ago. General and administration expenses were $1,039,211, compared to $1,012,042 recorded in the same period of the previous fiscal year. Engineering and development expense was $251,936 compared to $377,168. During the six months ended February 28, 2013, Titan recorded an increase to capitalized product development costs of $378,836 compared to $139,805 in the six months of the previous fiscal year. This increase is a result of additional resources being allocated to new product development as Titan focuses on the completion and launch of new products. Marketing and sales expense increased from $730,993 in the previous fiscal year-s first six months to $798,403 for the first six months of fiscal 2013. As a percentage of sales, operating expenses are 25% for the six month period ended February 28, 2013 compared to 28% for the same period of fiscal 2012. The reduction of operating expenses as a percentage of sales is primarily due to the increase in revenues and also the continued focus on controlling of operating costs.
At February 28, 2013 cash and cash equivalents and short term investments were $7,325,314 compared to $5,760,318 at the end of fiscal 2012. Titan does not have any debt except for trade and accrued payables.
Business Outlook:
Titan Logix continues to see strong growth in the U.S. markets while the Canadian market has slowed slightly. Much of the U.S. growth is a result of end users recognizing the need to have gauging technology that is reliable and versatile. Titan-s TD80 addresses this need.
The Company grew its profits for the first two quarters of fiscal 2013 as compared to last year. This was due in part to the effective execution of its strategic plan, resulting in increased market share. New tanker construction in the Company-s primary market has decreased from the peak levels of the previous fiscal year. It was noted last quarter that this market trend that began at the end of the last fiscal year was expected to have an impact on Titan-s sales. However, due to the Company-s success at increasing market share combined with an earlier than expected return of stronger OEM sales, the second quarter-s results mirrored the results of the first quarter of this fiscal year. The Company continues to watch the market-s performance and seeks to grow its business through increased market share.
Titan reports that it is pleased with the results of product testing as the Company completes the development of new Stiks and other products for release into current and new markets. The Company is progressing on the development and deployment of its complete -In the Field, On the Road, In the Office- solutions for various markets. Titan is in a strong financial position to advance its R&D initiatives and to make progress on its diversification strategy through the purchase of a strategically aligned company. Titan is currently evaluating specific acquisition and licensing opportunities.
Additional Information:
Titan Logix Corp.-s unaudited financial statements and management-s discussion and analysis for the second quarter of fiscal 2013 as well as its audited financial statements and management-s discussion and analysis for its fiscal year ended August 31, 2012 are available on SEDAR at and on the Company-s website, .
About Titan Logix Corp.:
Founded in 1979, Titan Logix Corp. (“Titan” or “the Company”) is a high technology company specializing in Research and Development (R&D), manufacturing and marketing of advanced technology fluid 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, burner management for oilfield heaters, and communication systems for remote alarming and control. The products are currently used in the oil and gas, waste fluid collection, chemical and aviation industries. These technologies and their derivatives under development are applicable to a variety of additional markets which Titan plans to expand into at the appropriate time. A common practice in many of these markets is the use of manual methods for measurement and control. Due to safety considerations, the rising cost of many fluids, awareness and concerns about the environment and technological advancements enabling better operational efficiencies, we are experiencing an increased demand for our advanced technology products. We anticipate this demand will continue as we pursue expansion into other markets.
The products we manufacture are part of a complete asset management solution. The full solution consists of our own market leading products integrated with best-in-class third party solutions to enable our customers to benefit from 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”.
Titan Logix Corp. is a public Company listed on the Toronto Venture Stock Exchange and its shares trade under the symbol, TLA.
This news release contains certain statements with information that may be forward-looking and subject to unknown risks and uncertainties. The actual results, performance and achievements of Titan Logix Corp. may differ materially from the results, performance and achievements expressed or implied by such forward-looking statements. These forward-looking statements may not relate strictly to historical or current facts. They represent management-s views as of the date of this press release and we assume no obligation to update them. We caution you not to place undue reliance on these forward-looking statements.
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:
Titan Logix Corp.
Greg McGillis, P.Eng.
President and Chief Executive Officer
(780) 462-4085
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