Business
TECSYS May Restate Previously Reported Financial Results
TECSYS May Restate Previously Reported Financial Results.
About this update from Tecsys Inc.
[{"type":"text","content":"\n\n\n\n\nMONTREAL, June 30 /CNW Telbec/ - TECSYS Inc. (TSX: TCS) announced today\nthat, due to an interpretation of the method and timing of revenue recognition\nrequired by Statement of Position 97-2 - Software Revenue Recognition, and\nafter having consulted with its auditors, it has determined that a restatement\nof prior years' financial results may be necessary.\nDuring Fiscal Year 2002, TECSYS changed its standard License Agreement to\nmake annual support mandatory. This was to ensure that all TECSYS software in\nuse in its clients' businesses is well supported. This licensing approach has\nnow been used for five consecutive fiscal years. During the process of\npreparing the 2006 year end financial statements, it was determined, that\naccording to SOP 97-2, TECSYS may require a restatement of revenue and related\ncost with the result that this revenue and cost be recognized over the useful\nlife of the software application rather than at the time of delivery.\nManagement is currently reviewing the terms of these License Agreements\nto quantify the impact on the financial statements for the years affected.\nManagement currently believes that financial results for the financial years\nended April 30, 2002 to 2006 may be affected. Any restatement may have a\nnegative impact on previous years' revenues and earnings but will have no\nimpact on previously reported cash from operations. Furthermore, any changes\nto prior years' revenue and cost will be allocated to subsequent years.\nManagement is working to complete this review as expeditiously as\npossible. Additional information will be forthcoming as available. Management\nwill make every effort to keep our shareholders informed on a timely basis.\n\nAbout TECSYS\n------------\n\nTECSYS is a leading, fast-growing supply chain management software\nprovider that delivers powerful enterprise distribution, warehouse and\ntransportation logistics software solutions. The company's customers include\nabout 800 mid-size and Fortune 1000 corporations in healthcare, giftware,\noffice products, third-party logistics, and general wholesale high-volume\ndistribution markets. TECSYS' shares are listed on the Toronto Stock Exchange\nunder the ticker symbol TCS.\n\nThe statements in this news release relating to matters that are not\nhistorical fact are forward looking statements that are b...