MONTREAL, Nov. 29 /CNW Telbec/ - TECSYS Inc. (TSX: TCS), an industry-
leading Supply Chain Management (SCM) software company announced today its
financial results for the second quarter of fiscal 2006 ending October 31st,
2005. All dollar amounts are expressed in U.S. currency and reported in
accordance with Canadian Generally Accepted Accounting Principles (GAAP) with
a reconciliation to the United States GAAP and are unaudited.
Financial highlights for the three months include:
- Revenue increased to $9.0M from $5.5M in the same quarter of last
year, a 63% increase.
- Product revenue increased to $3.7M from $1.8M in Q2 of the
previous fiscal year, an increase of 102%.
- Services revenue increased to $5.0M from $3.4M in Q2 of the
previous fiscal year, an increase of 46%.
- Net loss for the quarter was $166,000 compared to net loss of
$316,000 for the same period in the previous year.
- Cash increased to $7.0M compared to $6.7M at the end of the prior
fiscal quarter.
Financial highlights for the six months include:
- Revenue for the first half increased to $17M from $10.8M in the
comparable period of last year, an increase of 57%.
- Product revenue increased to $6.7M from $3.6M in the first half of
the previous year, an increase of 87%.
- Services revenue increased to $9.9M from $6.9M in the first half
of the previous year, an increase of 45%.
- Net Earnings for the first half were $59,000 compared to net loss
of $180,000 for the same period in the previous year.
"The combination of organic and acquisition-related growth has resulted
in a tremendous increase in revenue this quarter, led by a 102% increase in
product sales. We are continuing our drive for customer acquisition and
increasing our share of the supply chain management software market" said
Peter Brereton, President and Co-CEO of TECSYS Inc.
Other key achievements in the second fiscal quarter include:
- TECSYS signed 6 new clients for its products and services including:
- A major distributor for the world's leading manufacturer of
construction and mining equipment
- A Quebec-based, world-class developer and manufacturer of
ammunition
- A global children's publishing and media company
- A distributor of plastic bags and packaging products in Ohio
- A medical/Medicaid products distributor
- A Third Party Logistics services provider in California
- The Company also signed a significant number of product upgrades for
all of its product lines and has successfully completed the
deployment of its solutions in a number of accounts during the
quarter.
Revenues in the second quarter of fiscal 2006 increased 63% to $9.0M
compared to $5.5M in the same period of fiscal 2005. Loss from operations for
the reporting quarter was $131K compared to earnings from operations of $44K
in the corresponding quarter of last year. Income from operations was
impacted, by $166K, due to the strengthening of the Canadian dollar of
approximately 8% compared to the same period of last fiscal year. After
accounting for the exchange loss of $62K and net interest income of $27K, net
loss for the quarter was $166K or $0.01 per share compared to net loss of
$316K or $0.02 per share for the same period in the previous year.
For the six months ending October 31, 2005, revenues increased 57% to
$17.0M compared to $10.8M in the same period of the prior fiscal year. As a
result of the strengthening of the Canadian dollar of approximately 9%
compared to the same period of last fiscal year, earnings from operations were
negatively impacted by $324K. Despite unfavourable exchange of $324K, earnings
from operations for the reporting six months were $132K compared to $179K in
the corresponding period of fiscal 2005. Net earnings for the first half of
fiscal year 2006 were $59K or $0.00 per share compared to net loss of $180K or
$0.01 per share for the same period in fiscal 2005.
About TECSYS
------------
TECSYS is a leading, fast-growing supply chain management software
provider that delivers powerful enterprise distribution and transportation
logistics software solutions. The company's customers include about 600 mid-
size and Fortune 1000 corporations in healthcare, giftware, office products,
third-party logistics, and general wholesale high-volume distribution markets.
TECSYS' shares are listed on the Toronto Stock Exchange under the ticker
symbol TCS.
The statements in this news release relating to matters that are not
historical fact are forward looking statements that are based on management's
beliefs and assumptions. Such statements are not guarantees of future
performance and are subject to a number of uncertainties, including but not
limited to future economic conditions, the markets that TECSYS Inc. serves,
the actions of competitors, major new technological trends, and other factors
beyond the control of TECSYS Inc., which could cause actual results to differ
materially from such statements. All names, trademarks, products, and services
mentioned are registered or unregistered trademarks of their respective
owners.
<<
Consolidated Balance Sheets
Prepared in Accordance with Canadian Generally Accepted
Accounting Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
October 31, April 30,
2005 2005
(unaudited)
---------------------------
Assets
Current assets
Cash and cash equivalents 876 1,054
Short-term and other investments 5,557 5,435
Accounts receivable 8,059 7,000
Other accounts receivable 180 177
Tax credits receivable 1,691 1,241
Inventory 88 162
Prepaid expenses 646 749
---------------------------
17,097 15,818
Restricted cash equivalents and other
investments 571 815
Property, plant and equipment 2,021 2,044
Intangible assets 2,120 2,239
Goodwill 1,979 1,827
---------------------------
23,788 22,743
---------------------------
---------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 4,871 4,890
Current portion of long-term debt 509 106
Deferred revenue 2,076 1,868
---------------------------
7,456 6,864
Long-term debt 3 410
Other long-term liabilities 519 548
---------------------------
7,978 7,822
---------------------------
Shareholders' Equity
Capital stock 38,612 39,019
Contributed surplus 6,913 6,624
Cumulative translation adjustment 2,441 1,493
Deficit (32,156) (32,215)
---------------------------
15,810 14,921
---------------------------
23,788 22,743
---------------------------
---------------------------
Consolidated Statements of Deficit
Prepared in Accordance with Canadian Generally Accepted
Accounting Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
Six Months Six Months
Ended Ended
October 31, October 31,
2005 2004
(unaudited) (unaudited)
---------------------------
Balance - Beginning of period as
originally stated (32,215) (27,764)
Adjustment resulting from a change in
accounting policy regarding stock-based
compensation - (4,785)
---------------------------
Beginning balance as restated (32,215) (32,549)
Net earnings (loss) for the period 59 (180)
---------------------------
Balance - End of period (32,156) (32,729)
---------------------------
---------------------------
Consolidated Statements of Operations
Prepared in Accordance with Canadian Generally Accepted
Accounting Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars, except share and per share data)
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
October 31, October 31, October 31, October 31,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)
------------------------------------------------
Revenue
Products 3,720 1,838 6,716 3,591
Services 5,046 3,445 9,900 6,851
Reimbursable expenses 202 212 357 398
----------------------- -----------------------
8,968 5,495 16,973 10,840
Cost of revenue
Products 1,935 660 3,267 1,164
Services 3,425 1,772 6,450 3,514
Reimbursable expenses 202 212 357 398
----------------------- -----------------------
5,562 2,644 10,074 5,076
----------------------- -----------------------
Gross margin 3,406 2,851 6,899 5,764
----------------------- -----------------------
Operating expenses
Sales & marketing 1,514 1,142 2,968 2,320
General & administration 839 527 1,478 1,066
Gross research & development 1,108 933 2,099 1,842
Research & development tax
credits (243) (74) (400) (175)
Stock-based compensation 36 62 69 113
Amortization of property,
plant and equipment 141 140 276 270
Amortization of intangible
assets 142 77 277 149
----------------------- -----------------------
3,537 2,807 6,767 5,585
----------------------- -----------------------
Earnings (loss) from
operations (131) 44 132 179
Interest income 38 48 85 91
Interest expense (11) (8) (31) (17)
Foreign exchange losses (62) (400) (127) (433)
----------------------- -----------------------
Net earnings (loss) for the
period (166) (316) 59 (180)
----------------------- -----------------------
----------------------- -----------------------
Weighted average number of
common shares outstanding
- basic 13,816,997 14,158,797 13,850,223 14,158,797
----------------------- -----------------------
- diluted 13,816,997 14,158,797 13,901,725 14,158,797
----------------------- -----------------------
----------------------- -----------------------
----------------------- -----------------------
Basic and diluted net
earnings (loss) per
common share
(in US dollars) $(0.01) $(0.02) $0.00 $(0.01)
----------------------- -----------------------
----------------------- -----------------------
Consolidated Statements of Cash Flows
Prepared in Accordance with Canadian Generally Accepted
Accounting Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
October 31, October 31, October 31, October 31,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)
------------------------------------------------
Cash flows from
Operating activities
Net earnings (loss) for
the period (166) (316) 59 (180)
Adjustments for
Amortization of
property, plant and
equipment 141 140 276 270
Amortization of
intangible assets 142 77 277 149
Stock-based compensation 36 62 69 113
Unrealized foreign
exchange losses 16 76 22 86
Changes in non-cash
working capital items
related to operations
Decrease (increase) in
accounts receivable 181 335 (502) 627
Decrease in other
accounts receivable 33 41 10 150
Increase in tax credits
receivable (226) (195) (362) (432)
Decrease in inventory 48 - 83 -
Decrease in prepaid
expenses 46 27 144 92
Decrease (increase) in
long-term accounts
receivable - 28 - (6)
Increase (decrease) in
accounts payable and
accrued liabilities 192 (110) (346) (617)
Increase (decrease) in
deferred revenue (174) 8 27 (178)
------------------------------------------------
269 173 (243) 74
------------------------------------------------
Financing activities
Repayment of long-term
debt and capital lease
obligations (32) (20) (37) (95)
Purchase of common
shares for
cancellation (108) (3) (188) (3)
------------------------------------------------
(140) (23) (225) (98)
------------------------------------------------
Investing activities
Decrease (increase) in
short-term and other
investments (247) (2,083) 456 (1,810)
Acquisitions of
property, plant
and equipment (54) (48) (125) (93)
Acquisitions of intangible
assets (19) 14 (19) (9)
Business combinations
and purchase price
adjustment (33) - (33) 368
------------------------------------------------
(353) (2,117) 279 (1,544)
------------------------------------------------
Effect of foreign exchange
rate fluctuations on cash
and cash equivalents 25 76 11 63
------------------------------------------------
Change in cash and cash
equivalents (199) (1,891) (178) (1,505)
Cash and cash equivalents
- Beginning of Period 1,075 2,774 1,054 2,388
------------------------------------------------
Cash and cash equivalents
- End of Period 876 883 876 883
------------------------------------------------
------------------------------------------------
>>
%SEDAR: 00010494EF
