/THIS PRESS RELEASE IS NOT FOR DISSEMINATION TO UNITED STATES NEWS
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, May 29 /CNW/ - Sylogist Ltd.("SYZ" - TSX Venture Exchange) ("Sylogist" or the "Company") is pleased to announce its unaudited financial results for the 3 month period ending March 31, 2007.
Financial highlights for the second quarter and first half of Fiscal
2007:
- Second quarter revenue increased to $2.4 million with gross margin of
55% compared to revenue of $1.9 million and gross margin of 53% a
year earlier.
- Year-over-year quarterly revenue growth of 26% (base business revenue
growth of 133% to 2.4 million from $1 million when Munishare contract
revenue is excluded).
- Net cash and short-term investments increased to $7.1 million
compared to $2.1 million a year ago.
- Profit of $34 thousand in the quarter compared to $568 thousand the
previous year.
- $212 thousand expensed in the quarter for new and enhanced software
applications to build Sylogist's intellectual property portfolio
compared to $45 thousand a year earlier.
- $267 thousand of one time G&A expenses in the quarter related to
management changes and professional services costs.
- $284 thousand of non-cash expenses (Depreciation, Amortization, Stock
Compensation) compared to $91 thousand a year earlier.
- Book value increased to $13.7 million compared to $9.2 million a year
ago.
- 6 month revenue increased to $4.7 million compared to $3.5 million, a
year-over-year revenue growth of 33% (base business revenue growth of
115% to $4.5 million from $2.1 million when Munishare contract
revenue is excluded).
"The second quarter of Fiscal 2007 marked a period of transition after the cancellation of the Munishare contract late in the first quarter. We are pleased with the base business revenue and margin growth achieved in the second quarter demonstrating the solid foundation underpinning our operations. During the quarter we increased our investment in developing and enhancing our software products to expand their depth and breadth within our market segments. A number of management changes including the appointment of a new President and the re-alignment of business units made during the quarter have better positioned Sylogist for the future," stated Jim Wilson, CEO of Sylogist.
Full financial statements together with Management's Discussion and Analysis are available on SEDAR or at www.sylogist.com.
About Sylogist
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Sylogist delivers information management and technology solutions to government and industry clients. The Company's solutions are designed to improve productivity for both conventional computers, Web-based and mobile system users. Sylogist's software solutions, along with related services are delivered to a global base through its own sales and delivery organization, as well as through OEM channels. The Company provides implementation services for enterprise software under a traditional software and support model as well as software as a service model. Sylogist enhances its ERP support through its proprietary connectivity products, which link major ERP systems with other packaged and custom vertical market solutions.
Forward-looking statements: This press release contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays orchanges in plans, the occurrence of unexpected events, and Sylogist's capability to execute and implement its future plans. Actual results may differ materially from those projected by management.
Although Sylogist believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Sylogist can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this press release are made as of the date hereof and Sylogist undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.