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EDMONTON and CALGARY, Feb. 27 /CNW/ - Sylogist Ltd. (TSX:SYZ), a leading provider of enterprise information management solutions to municipal, education and enterprise customers, is pleased to release its unaudited financial results for the first quarter ended December 31, 2007.
Financial Highlights for First Quarter
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- Software License and maintenance revenues, excluding SAP related
revenues, increased 55% to $848 thousand from $547 thousand a year
earlier reflecting revenue growth in Bellamy Software and the
acquisition of MasterWorks Software.
- Total Software License and maintenance revenues accounted for 51% of
total revenues compared to 38% from the year prior.
- Spending on General & Admin and Sales & Marketing reduced by 24% to
$682 thousand from $894 thousand in the same period last year
reflecting implementation of our cost reduction plans.
- Investment in Product Development increased to $179 thousand from
$92 thousand in the year earlier reflecting increased spending on new
applications.
- Net loss reduced to $384 thousand from the $447 thousand loss in
first quarter 2007 and significant improvement over the loss of
$653 thousand in the preceding quarter.
- First quarter revenue of $1.7 million declined by $0.7 million over
the prior fiscal year due mainly to expiry of SAP re-seller contract
and no revenues associated with the Munishare project.
- Cash flow from operations net of Product Development investment was
neutral in the quarter.
"The growth of software license and maintenance revenue in the quarter demonstrates the transformation of Sylogist into an intellectual property based company principally serving the public sector market. Management continues its focus on product investments, expanding our customer base and leveraging the Bellamy Software brand, while further improving spending efficiencies," stated Werner Biegler, President and CEO.
New Product Development
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During the first quarter, Bellamy Software continued with the development of a meeting management application intended for the public sector, including both municipalities and school districts, to effectively manage board level meetings. This application, developed in close partnership with lead customers, is currently in beta and is targeted for launch in April. This application will be available to customers under a traditional software license model as well as a hosted Software as a Service (SaaS) application.
In the quarter, Bellamy Software also initiated the development of an application to help school districts centralize and standardize scheduling and assessments for their ESL (English as a Second Language) students. This ESL application will provide trend/statistical reporting to assist key decision makers in ensuring all ESL related funding is captured. This application, targeted for launch in May, will be made available to customers as a hosted Software as a Service (SaaS) application.
Lastly, the company commenced upgrading its mobile development application called Syloway to the .NET platform. This application will be available to the company's enterprise customers commencing in March, 2008.
Acquisitions
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On October 17, 2007, Sylogist announced the acquisitions of MasterWorks Software Systems and Reflex Government Software which provide finance, human resources and payroll software to school districts and municipalities respectively. These acquisitions were integrated within the Bellamy Software division in the quarter with the staff and operations of MasterWorks Software re-located to our Calgary office. These acquisitions increased the number of municipal and school district customers served by Bellamy Software to 160 and extended the reach of Bellamy Software outside of Alberta into Western Canada.
New Director Appointment
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Sylogist is also pleased to announce the appointment of C. Fraser Elliott to the board of directors, effective immediately, subject to all necessary regulatory approvals being received. Mr. Elliott, an entrepreneurial businessman based in Toronto, is a director and officer of CFE Financial Inc., a private investment banking company, and Tangerine Payment Solutions Corp., a venture issuer marketing electronic financial payment solutions to retail businesses across Canada. Mr. Elliott sits on the boards of charities and foundations as his time permits. "We are very pleased to add Fraser's valuable technology and public markets experience to our board as we move the Company rapidly forward," stated Jim Wilson, Executive Chairman.
About Sylogist
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Sylogist provides leading enterprise information management and collaboration 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, student information and collaborative web-based systems for the K-12 market. Our industry leading collaborative web solutions enhance teacher, parent and student on-line collaboration driving improved student achievement.
Full financial statements together with Management's Discussion and Analysis are available on SEDAR or at http://www.sylogist.com.
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.
- The TSX-Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release -