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TECSYS Reports 14% Year-to-date Revenue Growth, Improved Leadership in Health Systems & Heavy Equipment Markets, Declares 3.5 Cents Dividend


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© Marketwire 2013
2013-02-28 18:16:22 -

MONTREAL, QUEBEC -- (Marketwire) -- 02/28/13 -- TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the third quarter of fiscal year 2013, ended January 31, 2013. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.


Overall highlights:


--  A 26% rise in proprietary license revenue. 
--  Strengthened leadership position in healthcare, winning seven new
    agreements during the quarter with existing and new major clients. 
--  Increased market share in the heavy equipment dealer market with the
    signing of five new agreements with new and existing clients during the
    quarter. 
--  Existing clients from across its business units continued to invest in
    products and services - thirty two new agreements were concluded in the
    quarter. 
--  Continued to win in the SMB sector, with significant prospecting
    opportunities for warehouse management systems in this market space.  
--  Deployed supply chain execution solutions at fourteen customers in
    Canada and the United States. 



Highlights of the Third Quarter include:


--  Revenue was $10.4M in Q3, 2013 compared to $10.6M in Q3, 2012. The
    slight decline in revenue masks a 26% rise in proprietary license
    revenue because it was offset by a 34% decline in third party product
    revenue resulting in a decrease in product revenue of 12%. 
--  Services revenue rose by 4%. 
--  For Q3, 2013 EBITDA was negative at $28K compared to EBITDA of $755K in
    Q3 of last fiscal year.  
--  Loss from operations for the third quarter, 2013 was $464K compared to
    profit from operations of $378K in Q3, 2012. 
--  Net loss for the quarter was $543K or $0.05 per share compared to net
    profit of $305K or $0.03 per share for the third quarter of last fiscal
    year. 
--  Backlog increased to $25.1M at the end of Q3, 2013 from $24.6M at the
    end of Q3, 2012. 
--  At the end of Q3, 2013 annualized recurring revenue in Canadian currency
    increased 4% to $15.4M from $14.8M at the end of Q3, 2012. Annualized
    recurring revenue at the end of Q3, 2013 represented 35% of the
    Company's revenue for the last 12 months. 
--  Cash from operations amounted to $540K for the third quarter, 2013
    compared to $1.7M for the same quarter of the prior year. 
--  Cash, cash equivalents and other short-term investments amounted to
    $7.7M at the end of Q3, 2013, compared to $5.2M at the end of Q3, 2012. 



TECSYS also announced today that the Company's Board of Directors has declared a semi-annual dividend of $0.035/share, to be paid on March 29, 2013 to shareholders of record on March 15, 2013.


Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "In Q3, we were pleased to see a significant number of new contracts from our client base and major wins in the health systems and heavy equipment dealer markets. We continue to be the market leader in health system supply chains in North America. Our year-to-date revenue and profitability are ahead of last year by 14% and 21% respectively. Our license fee sales are up 26% for the quarter and 70% year-to-date. Over the past year we have grown our human capital infrastructure substantially to respond to our growing demand for services. We have added 85 people and ramped up our expenses by $1.1M compared to Q3 of last year. Most of this was done over the summer and fall. It takes some time for this additional expense to generate revenue. Our strong balance sheet has allowed us to make this aggressive move. The opportunities ahead with our sales pipeline and prospecting business initiatives are both solid and continuing to rise. According to the leading industry analysts firm, the supply chain management industry outlook is positive and is expected to remain prosperous in 2013."


Highlights of the first Nine Months of fiscal year 2013 include:

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TECSYS' Third Quarter 2013 Earnings Conference Call:

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The call can be replayed by calling 800-558-5253 (access code: 21650148) or 416-626-4100 (access code: 21650148).


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 more than 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, 2012. 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. 2013. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.

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Contacts:

Solutions and general info: info@tecsys.com :

Investor relations: investor@tecsys.com :

Media relations: media@tecsys.com :


TECSYS Inc.

(514) 866-0001 or (800) 922-8649

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