2010-09-09 17:27:01 -

MONTREAL, QUEBEC -- (Marketwire) -- 09/09/10 -- TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company announced today its results for the first quarter of fiscal year 2011, ended July 31st, 2010. All dollar amounts are expressed in Canadian currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP) and are unaudited.



Summary of the First Quarter:

--  Revenue was $8.4M in Q1 of fiscal 2011 compared to $9.2M in Q1 of fiscal
    2010. Revenue was negatively impacted by $370K due to the strengthening
    of the Canadian dollar in Q1, 2011. The U.S. dollar averaged CA$1.04 in
    Q1, 2011 compared to CA$1.13 in Q1, 2010.
--  Investment in marketing was substantially increased in support of the
    launch of the new Visual Warehouse Logistics Management System.
--  Loss from operations for the first quarter of 2011 was $349K compared to
    earnings from operations of $300K in Q1, 2010.
--  Negative EBITDA for Q1 of fiscal 2011 was $53K compared to EBITDA of
    $455K for Q1 of last fiscal year.
--  Net loss for the first quarter of fiscal 2011 was $390K or $0.03 per
    share, compared to net earnings of $108K or $0.01 per share for the
    first quarter of last fiscal year.
--  At the end of Q1, 2011, annualized recurring revenue stood at $13.6M up
    from $12.8M at the end of Q1, 2010. Recurring revenue for Q1, 2011
    represents 38% of revenue for the last twelve months and is principally
    made-up of annual software maintenance contracts.
--  At the end of Q1, 2011, backlog stood at $19.0M compared to $18.4M at
    the end of Q1, 2010.
--  At the end of Q1, 2011, cash, cash equivalents and short-term
    investments amounted to $7.3M compared to $8.1M at the end of Q4, 2010
    with virtually no long term debt.

TECSYS also announced today that the Company's Board of Directors has declared a semi-annual dividend of $0.025/share, to be paid on October 6, 2010 to shareholders of record on September 22, 2010.



Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "With the release of our new Visual Logistics™, it was time to invest in marketing to get the message out on this exciting new product. The visual approach to warehousing and the supply chain workforce is winning rave reviews and has garnered positive press around the world. As a result, TECSYS is being recognized as one of the world's leading warehouse management systems (WMS) and has been identified by Gartner as a top 3 visionary WMS solution on the global market today. Many of our current customers were able to take the new Visual WMS for a test drive as we rolled it out during our TECSYS user conference held in June in Toronto, Canada. Our client response was overwhelming across all the industries we serve. We also participated in a number of industry events and conferences during the quarter where Visual Logistics was showcased to the public and the press.



Overall revenue was down...recurring and services revenues were up; services revenue by $270K over the prior quarter. The quarter was impacted by delays in decision making on key new prospective business opportunities and by the continuing weakening of the U.S. dollar which impacted revenue by $370K in the quarter. Sales expenses were down; marketing expenses were up due to this new product rollout. Several new contracts were signed in the quarter resulting from the launch of the Visual WMS and this is continuing in Q2. Our recurring revenue continues to rise ending Q1 with $13.6M in recurring revenues on an annualized basis, up from $12.8M a year earlier and now equaling 38% of revenues.



The strength of our balance sheet, combined with the rise in services revenues and improving conditions in our target markets gives us confidence to move ahead with this exciting product launch. Our business development activities are on the rise producing a very healthy sales pipeline, particularly in hospital supply networks, heavy equipment and gas & welding supplies distribution where we are a market-leading provider."



During the quarter, the Company signed agreements with existing clients and new customers including:

--  A leading book distributor in Quebec
--  A packaged gas and welding supplies distributor in California
--  A healthcare third party distributor in Texas
--  A major imaging products manufacturer/distributor across the U.S.
--  A hospital supply network in Mississippi
--  A wine distributor in Florida
--  An industrial distributor in Quebec
--  A lighting distributor in Ontario
--  Two industrial distributors in Ontario
--  One industrial distributor in Saskatchewan
--  An office products distributor in Ontario

Furthermore, TECSYS also deployed its supply chain execution solutions at fifteen customers in Canada and the United States.



TECSYS' First Quarter 2011 Earnings Conference Call:
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The call can be replayed by calling 800-558-5253 (access code: 21480484) or 416-626-4100 (access code: 21480484).



About TECSYS



TECSYS is a leading supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company's customers include over 500 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.



The statements in this news release relating to matters that are not historical fact are forward looking statements that are based on management's beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that TECSYS Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of TECSYS Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with TECSYS Inc.'s business can be found in the MD&A section of the Company's annual report and annual information form for the fiscal year ended April 30th, 2010. These documents have been filed with the Canadian securities commissions and are available on our website ( www.tecsys.com : ) and on SEDAR ( www.sedar.com : ).



Copyright © TECSYS Inc. 2010. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.
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TECSYS Inc.
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