Epic Data Announces Q2 Results

Epic Data International Inc. (TSX VENTURE:EKD) (the "Company" or "Epic Data"), a
provider of manufacturing operations management and real-time data collection
solutions, today announced the results of operations for the three and six
months ended March 31, 2011.




Results of Operations                                                      
                                Three months ended        Six months ended 
                                          March 31,               March 31, 
                                  2011        2010        2011        2010 
                           ------------------------------------------------
                                                                           
Revenue                     $  960,655  $1,079,336  $2,242,107  $2,550,646 
                                                                           
Cost of sales                  522,529     553,906   1,133,265   1,230,259 
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Gross margin                   438,126     525,430   1,108,842   1,320,387 
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Expenses                                                                   
  General and                                                              
   administration              317,351     423,459     654,398     823,180 
  Sales and marketing          298,539     275,325     563,617     485,022 
  Product development          151,599     143,693     297,185     268,134 
  Amortization of property,                                                
   plant and equipment          19,194      12,114      27,870      36,750 
  Net finance charges           17,554      14,628      28,717      29,408 
  Stock based compensation       9,983       5,637      15,212      10,764 
  Foreign exchange              34,115      50,154      66,170      71,767 
  Interest accretion             1,419           -       1,419           - 
  Severance                          -      41,120           -      45,991 
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                               849,754     966,130   1,654,588   1,771,016 
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Net loss for the period       (411,628)   (440,700)   (545,746)   (450,629)
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Loss per share - basic and                                                 
 diluted                    $    (0.02) $    (0.03) $    (0.02) $    (0.03)
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Results of Operations for the Three and Six months ended March 31, 2011

Revenue

Revenue for the three months ended March 31, 2011 decreased $118,681 or 11% to
$960,655 compared with $1,079,336 in the same period last year. Revenue for the
six months ended March 31, 2011 decreased $308,539 or 12% to $2,242,107 compared
with $2,550,646 in the same period last year. The decrease in revenue for both
periods was due to curtailed spending by our customers and the stronger Canadian
dollar, which negatively impacted revenue for the three and six months ended
March 31, 2011 by approximately $61,000 and $163,000, respectively.


Gross Margin

The gross margin for the three months ended March 31, 2011 decreased $87,304 or
6% to $438,124 as compared with $525,430 in the same period last year. The gross
margin for the six months ended March 31, 2011 decreased $211,545 thousand or
16% to $1,108,842 as compared with $1,320,387 in the same period last year. The
decrease was due to the lower revenue.


The gross margin as a percentage of revenue for the three months ended March 31,
2011 decreased to 46% compared with 49% in the same period last year, while for
the six months ended March 31, 2011 decreased to 50% compared with 52% in the
same period last year. The decreases were due mainly to lower productivity,
especially in professional services, with fixed costs and lower revenue.


General and administration

General and administration expenses for the three months ended March 31, 2011
decreased $106,108 or 25% to $317,351 compared with $423,459 in the same period
last year. General and administration expenses for the six months ended March
31, 2011 decreased $140,039 or 17% to $683,141 compared with $823,180 in the
same period last year. The decrease is principally due to lower staff levels,
lower head office rent and a recovery of building operating costs in the second
quarter of 2011 of approximately $63,000.


Sales and marketing

Sales and marketing expenses for the three months ended March 31, 2011 increased
$23,214 or 8% to $298,539 compared with $275,325 in the same period last year.
Sales and marketing expenses for the six months ended March 31, 2011 increased
$90,951 or 24% to $575,973 compared with $485,022 in the same period last year.
The increase in both periods is due primarily to the opening of the
representative office in China for the new marketing initiatives in China.


Product development

Product development expenses for the three months ended March 31, 2011 increased
$7,906 or 6% to $151,599 compared with $143,693 in the same period last year.
Product development expenses for the six months ended March 31, 2011 increased
$29,051 or 11% to $297,185 compared with $268,134 in the same period last year.
The increases in both periods is due to the development of the Epic Data MES
suite of application for the China market and a reduction in the amount of
staffing costs being allocated to cost of sales resulting from less project work
in the current periods compared to the same period last year.


Net loss

Net loss for the three months ended March 31, 2011 decreased $29,072 or 7% to
$411,628 compared with $440,700 in the same period last year. Net loss for the
six months ended March 31, 2011 increased $136,216 or 30% to $586,845 compared
with $450,629 in the same period last year.


Financing Activities

In February 2011 the Company entered into a loan agreement with North-America
VanStar Investments Ltd. ("NA VanStar"), a company controlled by a director,
where the Company received a loan of $2,000,000 with interest at 5% per annum
payable semi-annually. The principal is due in five years. As security for the
loan, the Company provided NA VanStar with a general security agreement over all
assets of the Company. In addition the Company issued NA VanStar warrants for
the purchase of 500,000 common shares at $0.09 per share. The warrants expire
the earlier of January 30, 2016 or on the repayment of the loan in full. The
proceeds of the loan will be primarily used to develop operations in China.


About Epic Data

Epic Data International Inc. is a provider of manufacturing operations
management and warehouse management solutions. For 36 years Epic Data has
delivered real-time data collection and production information to discrete
manufacturers through turnkey data collection, warehouse management and lean
manufacturing operations management solutions. 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 productivity,
materials visibility and production velocity. Customers include Hawker
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.


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.