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CALGARY AND EDMONTON, Jan. 21 /CNW/ - Sylogist Ltd. (TSXV:SYZ) ("Sylogist" or the "Corporation") today announced its audited financial results for the year ended September 30, 2008.
Revenue for the fiscal year ended September 30, 2008 was $6.9 million, in a period of transition for the Corporation. Sylogist shifted its focus, from a terminated government initiative and from re-selling large ERP systems, to leveraging its acquisitions of Bellamy Software, Masterworks, and Reflex Government Solutions and continuing its strategy of pursuing acquisitions in the public sector market. Revenue was $8.1 million in fiscal 2007. The public sector business unit went through a period of adjustment, as positioning and operations became better integrated. While Sylogist's public sector business grew in fiscal 2008, activity associated with the SAP marketplace and with the CLN acquisition showed significant declines.
As part of the transition in fiscal 2008, Sylogist made an impairment allowance for collection of a long term accounts receivable associated with the aforementioned contract termination in the amount of $2.1 million and recorded a write down of $0.4 million of intangible assets acquired in the CLN transaction. Sylogist recorded a loss of $4.0 million for fiscal 2008.
Cash flow from operations was a loss of $0.7 million in fiscal 2008 compared to a loss of $1.0 million in 2007. Cash flow improved in the second half of 2008 over the first two quarters. Working capital at September 30, 2008 was $3.9 million, compared to $5.1 million the previous year. During fiscal 2008 Sylogist acquired Masterworks Software Systems Ltd and Reflex Government Solutions for total consideration of $0.5 million.
"Although we are disappointed with the financial results in fiscal 2008, changes implemented in the second half of 2008 demonstrated a positive trend that we expect to result in significantly improved operating results in 2009," stated Jim Wilson, President & Chief Executive Officer.
About Sylogist --------------
Sylogist provides leading enterprise information management software applications to municipal, education and private sector customers. We provide an integrated suite of business applications to municipalities that serve their needs for revenue, finance and operations management capabilities. Our education applications provide financial and student information web-based systems for the K-12 market. The Corporation's stock is traded on the TSX Venture Exchange under the symbol SYZ. Information about Sylogist can be found at http://www.sylogist.com or on the Corporation's profile on SEDAR at www.sedar.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.
- Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release -