Feb. 16, 2011 (Canada NewsWire Group) --
/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
CALGARY, Feb. 16 /CNW/ - Sylogist Ltd. (TSXV:SYZ), a leading provider of intellectual property solutions to public and private sector customers, is pleased to release its unaudited financial results for the first quarter of fiscal 2011 ending December 31, 2010.
In the first quarter of fiscal 2011:
- EBITDA(1) was $0.8 million or $0.04 per share.
- Net after tax earnings were $0.4 million or $0.02 per share.
- Gross profit margins in the quarter improved to 72% up from 64% in the first quarter of fiscal 2010.
- Revenues were $2.3 million.
- Cash and cash equivalents as at December 31, 2010 totalled $14 million or $0.69 per share.
- Working capital (net of deferred revenue) was $18.5 million or $0.92 per share.
- Tax pools at the end of the first quarter of fiscal 2011 stood at $12.4 million.
"We are pleased with our progress in the first quarter of fiscal 2011. Cash flow from operations remained strong as we significantly increased our investment in marketing to grow our business while improving our operating efficiencies through our Software-as-a-Service offerings. Marketing costs increased by 78% over the previous comparable period while gross profit improved to our highest level at 72% of revenue. Non cash costs, including future tax expense and stock compensation, decreased our reported after tax earnings compared to the same period last year. Our balance sheet strength improved, with working capital standing at $18.5 million, providing the capital for expansion through internal growth, acquisitions and strategic investments." stated Jim Wilson, Chairman, President and CEO.
Sylogist is pleased to announce a dividend of 2 cents per share to be paid on March 15, 2011 to shareholders of record at the close of business on Monday February 28, 2011. All dividends paid by Sylogist to holders of Common Shares in the capital of the Corporation will be treated as a return of capital, unless otherwise indicated.
We are proud to report that the TSX Venture Exchange recently announced, for the second year in a row, Sylogist was named as one of the TSX Venture 50, a ranking of strong performers listed on the TSX Venture Exchange. The 2011 TSX Venture 50 were selected based on four equally weighted criteria that include return on investment, trading, analyst coverage and market capitalization growth.
About Sylogist
Sylogist provides leading financial enterprise information management systems, system connectivity solutions and portal applications to municipal, education and private sector customers.
(1) EBITDA is a non-GAAP financial measure: earnings before stock based compensation, interest, income taxes, depreciation and amortization.
(2) Per share calculations are based on the weighted average number of shares outstanding at year end.
Full financial statements together with Management's Discussion and Analysis are available on SEDAR.
The Company's stock is traded on the TSX Venture Exchange under the symbol SYZ. Information about Sylogist can be found at http://www.sylogist.com.
Forward-looking Statements
This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Sylogist. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Sylogist does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
- The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release -
Jim Wilson, President and CEO
Sylogist Ltd.
(403) 266-4808