Titan Global Holdings Reports Record $36 Million in Revenues for Fiscal Q2 2007

Newsletter

April 16, 2007

Volume VIII, Issue 31

Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com

To OTC Journal Members:

Titan (OTC BB: TTGL) Turns Corner - Generates First EPS in Company History

Well, I've been grinding through the SEC Q2 filing for TTGL today, and there is still some work to do. One issue is crystal clear- the direction of the company. It just keeps getting better every time they release financial results. TTGL turned the corner in Q2 to a profitable company for the first time in their history, and it's probably just a question of time until someone decides to take a pretty big bite out of this stock.

Just so we're clear- I often talk about positive cash flow vs EPS (earnings per share). Today's FASB (accounting Standards boards) regs make accounting treatments crazy. This is not the early 60's when IBM made a simple profit by taking in more cash than they spend. When a company does bring in more money than it spends- that is positive cash flow. I like it when companies turn positive cash flow- you know why? Because if you are taking in more money then you are spending, you can be around for a long time, and you don't need to do any stupid financings.

However, if you have EPS (earnings per share) after subtracting all the non-cash stuff, that is far better. EPS makes stocks sexy. That's what has happened with TTGL- they are now making so much money they are actually generating EPS- $.03 per share in their fiscal Q1 (end of February), or $1.5 million on $36 million in revenues.

While the profits are nice, consider the turn around from Q1 last year. Here are some facts:

Q1 of '06: Revenues of $21.3 million
Q1 of '07: Revenues of $31 million (45% increase)
Q1 of '06: Losses of $3 million
Q1 of '07: Profits of $1.5 million ($.03 per share)

According to TTGL's press release, the company generated $8.6 million in EBITDA profits. The paid about $1.5 million in interest, so the company was really cash flow positive to the tune of about $7 million in Q1- this is great stuff. If they really are generating $7 million in excess cash flow per quarter, this company is well on its way to very strong fiscal performance.

There are still only 50 million shares I&O- no increase in that arena - this bodes well for stock price appreciation- they aren't doing any more stupid financings.

Here's the chart:

The stock has been grinding in this $1.20 to $1.40 range for most of 2007 after making an outstanding multi month move in 2006. There are really no retracement levels to look at with this stock- it is all about a breakout at this point.

The trend lines you see drawn depict an "ascending wedge". As you can see, it is coming to a point. Volume is drying up. This stock should be ready to make a move and break out of this wedge- either up or down. If it breaks down we look at retracement levels. If it breaks up, we look at extensions to come up with an LPO (logical profit objective).

In light of the company's announcement post close today- it strikes me a breakout to the upside is more likely. The overall market is getting stronger, as is this company.

With 50 million I&O, the company is still trading with a market cap of only $62.5 million with an annual revenue run rate of $144 million. They turned the corner to profitability.

The stock is still cheap- it's still cheap because they need to make some balance sheet improvements in order to garner a much higher valuation. When, and if they collect on the excise taxes the company could be debt free, which would provide a whopping return for investors with the courage to accumulate at these levels.

My thoughts remain the same- I still like the stock for $3 longer term with an SSL of $1.04. Tomorrow could be a good day for this stock.

Here is the complete text of today's release for your review:

Press Release Source: Titan Global Holdings, Inc

Titan Global Holdings Reports Record $36 Million in Revenues for Fiscal Q2 2007

Monday April 16, 4:01 pm ET

Robust Financial Performance Highlighted by Net Income of $1.5 Million and Reported $8.6 Million in EBITDA

RICHARDSON, Texas--(BUSINESS WIRE)--Titan Global Holdings, Inc (OTCBB:TTGL - News), a high-growth diversified holding company, reported record financial results for its fiscal quarter ended February 28, 2007, highlighted by the Company's record growth in revenues to $36 million, a 38% increase over the $26 million for the comparable period the previous year, with net operating income of $1.5 million, or $.03 earnings per share. The Company also reported $8.6 million in earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter, with all business segments reporting continued strong revenue growth.

During the second fiscal quarter of 2007, Titan continued efforts to organically grow revenues, surging 20% above the first quarter of 2007. The Company also completed refinancing which, in part, eliminated most convertible debentures, enabling the Company to repurchase retire certain stock and more favorably structure working capital needs. These efforts coupled with continued positive financial performance reduced Titan's working capital deficit from $35.8 million at the close of the first quarter of 2007 to less than $9 million at the close of this fiscal quarter.

"Strategically, the quarter's highlights were the continued growth and positioning of our Communications Division and the announced plans to spin-off Titan's printed circuit business," said Bryan Chance, Chief Executive Officer of Titan Global Holdings. "The spin-off allows Titan to accelerate strategic transaction flow at all divisions which will significantly build overall shareholder value."

Consolidated Results

3 Months Ended 6 Months Ended

February 28, February 28, February 28, February 28,
Consolidated 2007 2006 2007 2006

Revenues 36,078 26,003 66,063 53,683

Gross Profit 3,855 2,064 7,284 4,173

Net Income 1,492 (2,964) (5,416) (9,368)

Communications Division

The Communications Division reported record second quarter revenue of $30.9 million, an increase of $9.6 million or 45% increase from the same period a year ago. The Communications Division also reported earnings before interest, taxes, depreciation and amortization of $6.6 million compared to $654,000 for the same period last year.

During the second quarter, Titan strengthened its owned and leased network platform to terminate international calls, launched Picante Movil and Titan's new wireless product offering leveraging the Company's flagship Picante brand.

"Our Communications Division continues to increase market share and position itself for sustained growth and profitability," said Kurt Jensen, President and Chief Executive Officer of Titan's Communications Division. "Throughout the remainder of fiscal 2007, Titan's Communications Division will further expand its owned and leased network platform through organic and strategic initiatives, pursue strategic acquisitions in the wireless space and work to improve the profitability of our overall operations."

3 Months Ended 6 Months Ended

February 28, February 28, February 28, February 28,
Communications 2007 2006 2007 2006

Revenues 30,938 21,304 55,511 44,571

Gross Profit 3,772 1,329 6,920 3,385

Net Income 2,582 (1,276) 1,544 (1,455)

Electronics and Homeland Security Division

The Electronics and Homeland Security Division reported increased revenues of $5.1 million, a 9% increase from the same quarter last year. The Electronics and Homeland Security division reported earnings before interest, taxes, depreciation and amortization of $3.2 million compared to negative result of $344,000 for the same period last year. The increase in the EBITDA is primarily related to the gains recognized on the extinguishment of the convertible debentures.

The revenue growth Titan achieved was in large part due to the addition of more than 50 new customers which is a direct result of the Company's new 'rep centric' sales organization. The Company's gross profit margins were compressed as a result of increased material cost and the decline in demand for quick turn services.

"We continued to demonstrate progress with increased revenue and continue to gain market share during a time of transition in the market for printed circuit boards," said Curtis Okumura, President of Titan's Electronics and Homeland Security Division. "We will continue to identify operational efficiencies to increase profitability in the printed circuit board companies and look to continue to increase market penetration for the remainder of fiscal 2007."

3 Months Ended 6 Months Ended

February 28, February 28, February 28, February 28,
E&HS 2007 2006 2007 2006

Revenues 5,140 4,699 10,552 9,112

Gross Profit 83 735 364 788

Net Income 127 (1,688) (5,047) (7,845)

About Titan Global Holdings

Titan Global Holdings, Inc. ("Titan") (OTCBB:TTGL - News) is a high-growth diversified holding company with a dynamic portfolio of companies engaged in emerging telecommunications markets and advanced technologies. In its last fiscal year Titan generated in excess of $109 million in revenues on a consolidated basis.

Titan's Oblio Telecom Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas, is a market leader in prepaid telecommunications products and the second largest publicly-owned international telecommunications company focused on the prepaid space. Oblio leverages strategic agreements with Tier 1 telecommunications leaders Sprint and Level3 to supply its brand-name prepaid calling cards. Annually Oblio sells an estimated 35 million of its brand-name prepaid calling cards through its established distribution channels estimated at more than 60,000 retail outlets.

Titan Wireless, Inc. ("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products and wireless services through Oblio's established distribution channels. Titan's Electronics and Homeland Security division specializes in advanced manufacturing processes to provide commercial production runs and quick-turn delivery of printed circuit board prototypes for high-margin markets including Homeland Security and high-tech clients.

For more information, please visit: www.titanglobalholdings.com. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.

Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.

Contact:

Trilogy Capital Partners
Financial Communications:
Ryon Harms, Toll-free: 800-592-6067
ryon@trilogy-capital.com

Source: Titan Global Holdings, Inc

Subscribe

Information is power and timely information is profitable. Become informed and profit from OTC Journal Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. Add your email address below and make sure to check your email inbox and confirm your opt-in request to start receiving the OTC Journal Email Newsletter on a regular basis.

To ensure newsletter delivery, you can add any additional email addresses you may have to the OTC Journal Member List. Receiving the OTC Journal Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! For web based email addresses, the OTC Journal recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery.

Note: Your email address will be kept strictly confidential, and will not be shared with any other entity for any purpose at any time. If you no longer wish to receive the OTC Journal, simply follow the instructions located at the bottom of every OTC Journal Newsletter Edition.

Disclaimer

The OTCjournal.com Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. Moreover, as detailed below, this publication accepts compensation from certain of the companies which it features. Likewise, this newsletter is owned by MarketByte, LLC. To the degrees enumerated herein, this newsletter should not be regarded as an independent publication.

Go Here to view our compensation on every company we have ever covered, or visit the following web address: http://www.otcjournal.com/disclaimer.html for our full profiles and http://www.otcjournal.com/trading-alerts/disclaimer.html for Trading Alerts. MarketByte LLC has been paid a fee of $50,000 cash by Titan General for coverage of the company. In addition, MarketByte LLC has been pledged a fee of 90,000 warrants convertible at $1 and 90,000 warrants convertible at $1.50 into restricted shares by Trilogy Capital for coverage of the company.

All statements and expressions are the sole opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

From time to time MarketByte LLC sells shares in the open market it receives as compensation for coverage of client companies. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, the editors do not view the sale of the shares as contradictory to any advice delivered in the content. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies.

The editor, members of the editor's family, and/or entities with which they are affiliated aside from MarketBtye LLC itself, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication unless specifically disclosed in the newsletter. Some of the companies featured in the OTC Journal pay a cash ESP fee to an affiliated technology company ranging from $2,000 to $5,000 per month for internet related technology services.

The Trustee of the MarketByte LLC Defined Benefit and Trust (“the MarketByte Pension Plan”) has invested approximately The Trustee of the MarketByte LLC Defined Benefit and Trust (“the MarketByte Pension Plan”) has invested approximately $310,0000 in the Longview Fund (“the Longview Limited Partnership”), a limited partnership in which the MarketByte Pension Plan is a limited partner. No one associated with the MarketByte Pension Plan has any knowledge, information, or control as to any past, present, or future investment activities of the Longview Fund. Longview ocassoinally refers companies to MarketByte LLC for possible coverage by one of the MarketByte LLC publications, which publications include The OTCJournal.com Newsletter. Longview may or may not own shares in the companies that it so refers to MarketByte. MarketByte has no information (outside of information readily accessible to the general public such as SEC filings) as to whether Longview owns any shares in the companies that it refers to MarketByte LLC. The above relationships should be viewed as a potential and/or actual conflict of interest by shareholders and prospective shareholders of MarketByte LLC client companies.

The profiles, critiques, and other editorial content of the OTCjournal.com may contain statements that appear foward relating to the expected capabilities of the companies mentioned herein.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE EDITORS OF OTCjournal.com.

We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm. Disclaimer ID:$subst('Recip.userid') Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site. MarketByte LLC's mailing address is 4653 Carmel Mtn Rd Suite 308 #402, San Diego, CA 92130.

You can unsubscribe from this list at any time by Clicking Here and HITTING SEND. If you are having difficulty removing yourself or wish to change your address please go to http://listserv.otcjournal.com/opt.cgi?.