MONTREAL, July 5 /CNW Telbec/ - TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company announced today its results for the fourth quarter and full fiscal year 2007, ended April 30th, 2007. Results for the full 2007 fiscal year are audited. All dollar amounts are expressed in U.S. currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP).
Highlights for the fourth quarter include:
- The Company signed seven new customers, including:
- ROE Logistics, a Montreal-based global provider of logistics
services.
- Two major Caterpillar(R) dealers in the U.S.
- One import-to-retail distributor and a giftware
manufacturer/distributor in Ontario.
- Terrace Supply Company, a distributor of welding equipment and
supplies in Illinois.
- telent plc, a leading provider of technology services in the U.K.
- Revenue increased 5% or $396K to $7.8M in fiscal 2007 compared to $7.4M
for the same quarter of the last fiscal year. Deferred license revenue
increased to $1.725M at the end of the fourth quarter from $1.221M at
the end of the third quarter; an increase of 41%.
- Earnings from operations for the quarter were $46K compared to loss
from operations of $1.3M for the same quarter of last fiscal year.
- EBITDA for Q4, 2007 improved to $126K compared to negative EBITDA of
$1.154M for Q4, 2006.
- Gross margin percentage increased to 38% in Q4 of fiscal year 2007
compared to 32% in Q4 of last fiscal year. Gross margin improvement for
the quarter includes a substantial increase in Services' gross margin
to 36% in 2007 from 13% in 2006.
- Total operating expenses for the fourth quarter of fiscal year 2007
decreased by $698K or 19% to $2.9 million, compared to $3.6 million for
the same quarter of last fiscal year.
- Net loss for the quarter was $125K ($0.01 per share) compared to net
loss of $1.4M ($0.10 per share) for the fourth quarter of last fiscal
year.
- At the end of the quarter, backlog stood at $15.5M, up from $14.9M at
the end of Q4 of the prior fiscal year.
- The Company's cash position increased by $2.6M during the quarter.
Peter Brereton, President and CEO of TECSYS Inc. commented on the results:
"We believe that the positive returns in the second half of the year
demonstrate clearly that our strategy is working. In the second half, after
completing a major realignment in our business, both from a market focus and
operational standpoint, we have generated operating earnings of $302K and
$2.7 million in cash. We ended the year in good shape, with a clear focus on
winning markets, a solid sales pipeline, a couple of quarters of solid
earnings from operations and substantial cash generated."
Financial highlights for the full fiscal year include:
- Revenue for fiscal year 2007 was $31.0M compared to $33.8M for last
fiscal year. Deferred license revenue increased to $1.725M at the end
of fiscal year 2007 from $946K at the end of fiscal year 2006, an 82%
increase.
- For fiscal year 2007, EBITDA improved to $446K compared to negative
EBITDA of $556K for last fiscal year.
- Gross margin increased to 38% in 2007 compared to 37% in 2006. Gross
margin improvement for the year includes a substantial increase in
Services' gross margin to 33% in 2007 from 29% in 2006.
- Total operating expenses decreased by 8% in fiscal year 2007 compared
to last fiscal year.
- Net loss for the year amounted to $554K or $0.04 per share, compared to
a net loss of $1.6M or $0.12 per share for last fiscal year.
- Net loss for the first half of fiscal year 2007 was $865K. Following
strategic restructuring, the Company became profitable in the second
half with net earnings of $311K.
- After re-payment of the final $425K of long term debt and capital lease
obligations, cash amounted to $7.2M at the end of fiscal 2007 compared
to $6.9M at the end of last fiscal year.
- DSO (Days Sales Outstanding) was reduced to 76 days at the end of
fiscal year 2007 compared to 87 days at the end of last fiscal year.
Loss from operations for fiscal year 2007 was $598K and includes $234K in
restructuring charges that took effect in the second quarter. Loss from
operations for fiscal year 2006 was $1.2M. After accounting for an exchange
loss of $95K, net interest income of $173K and a share of net loss of $34K
from a company in which TECSYS has an equity interest, net loss for fiscal
year 2007 was $554K or $0.04 per share compared to a net loss of $1.6M or
$0.12 per share for last fiscal year.
About TECSYS
------------
TECSYS is a leading supply chain management software provider that
delivers powerful enterprise distribution, warehouse and transportation
logistics software solutions. The company's customers include about
800 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. More information about the risks and
uncertainties associated with TECSYS Inc.'s business can be found in the MD&A
section of the Company's annual report and annual information form for the
fiscal year ended April 30th, 2006. These documents have been filed with the
Canadian securities commissions and are available on our website
(www.tecsys.com) and on SEDAR (www.sedar.com).
Copyright (C) TECSYS Inc. 2007. All names, trademarks, products, and
services mentioned are registered or unregistered trademarks of their
respective owners.
TECSYS Inc.
Consolidated Balance Sheets
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
April 30, April 30,
2007 2006
-----------------------
-----------------------
Assets
Current assets
Cash and cash equivalents 4,058 1,180
Short-term and other investments 2,509 5,159
Accounts receivable 6,242 6,679
Work in progress 271 455
Other accounts receivable 169 88
Tax credits receivable 983 1,362
Inventory 145 147
Prepaid expenses 500 599
-----------------------
14,877 15,669
Restricted cash equivalents and other investments 609 602
Long-term receivable 110 -
Long-term investment 257 321
Property and equipment, net 1,672 2,010
Intangible assets 1,385 1,945
Deferred development costs 672 265
Goodwill 2,068 2,042
-----------------------
21,650 22,854
-----------------------
-----------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 4,367 4,910
Current portion of long-term debt 97 527
Deferred revenue 3,420 3,247
-----------------------
7,884 8,684
Other long-term liabilities - 100
-----------------------
7,884 8,784
-----------------------
Shareholders' equity
Capital stock 38,188 38,256
Contributed surplus 7,293 7,169
Cumulative translation adjustment 3,279 3,085
Deficit (34,994) (34,440)
-----------------------
13,766 14,070
-----------------------
21,650 22,854
-----------------------
-----------------------
TECSYS Inc.
Consolidated Statements of Deficit
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
Year Ended Year Ended
April 30, April 30,
2007 2006
-----------------------
-----------------------
Balance - Beginning of year (34,440) (32,835)
Net loss for the year (554) (1,605)
-----------------------
Balance - End of year (34,994) (34,440)
-----------------------
-----------------------
TECSYS Inc.
Consolidated Statements of Operations
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S.
dollars, except share Three Three
and per share data) Months Months Year Year
Ended Ended Ended Ended
April 30, April 30, April 30, April 30,
2007 2006 2007 2006
(unaudited) (unaudited)
-----------------------------------------------
-----------------------------------------------
Revenue
Products 2,866 3,255 12,127 14,276
Services 4,642 3,850 17,913 18,665
Reimbursable expenses 251 258 1,000 870
----------------------- -----------------------
7,759 7,363 31,040 33,811
Cost of revenue
Products 1,599 1,396 6,037 7,134
Services 2,951 3,368 12,059 13,257
Reimbursable expenses 251 258 1,000 870
----------------------- -----------------------
4,801 5,022 19,096 21,261
----------------------- -----------------------
Gross margin 2,958 2,341 11,944 12,550
----------------------- -----------------------
Operating expenses
Sales and marketing 1,172 1,587 5,098 6,160
General and administration 490 746 2,451 2,932
Gross research and
development 1,046 1,181 4,254 4,457
Research and development
tax credits (43) (92) (292) (636)
Deferred development costs (92) (199) (393) (259)
Stock-based compensation 38 26 57 131
Amortization of property
and equipment 150 162 554 589
Amortization of intangible
assets 151 150 579 572
Restructuring charges - 49 234 (242)
----------------------- -----------------------
2,912 3,610 12,542 13,704
----------------------- -----------------------
Earnings (loss) from
operations 46 (1,269) (598) (1,154)
Interest income 61 55 208 184
Interest expense (1) (10) (35) (52)
Foreign exchange losses (258) (159) (95) (516)
Share of net earnings (loss)
of a company subject to
significant influence 27 (48) (34) (67)
----------------------- -----------------------
Net loss for the period (125) (1,431) (554) (1,605)
----------------------- -----------------------
----------------------- -----------------------
Weighted average number
of common shares
outstanding
- basic 13,678,297 13,665,803 13,654,369 13,783,039
----------------------- -----------------------
- diluted 13,678,297 13,665,803 13,654,369 13,783,039
----------------------- -----------------------
----------------------- -----------------------
Basic and diluted net
loss per common share
(in US dollars) $ (0.01) $ (0.10) $ (0.04) $ (0.12)
----------------------- -----------------------
----------------------- -----------------------
TECSYS Inc.
Consolidated Statements of Cash Flows
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
Three Three
Months Months Year Year
Ended Ended Ended Ended
April 30, April 30, April 30, April 30,
2007 2006 2007 2006
(unaudited) (unaudited)
-----------------------------------------------
-----------------------------------------------
Cash flows from
Operating activities
Net loss for the period (125) (1,431) (554) (1,605)
Adjustments for
Amortization of property
and equipment 150 162 554 589
Amortization of intangible
assets 151 150 579 572
Stock-based compensation 38 26 57 131
Unrealized foreign exchange
losses (gains) 84 13 (1) 59
Restructuring charges - 124 - (242)
Deferred development costs (92) (199) (393) (259)
Share of net loss (earnings)
of a company subject to
significant influence (27) 48 34 67
Changes in non-cash working
capital items related to
operations
Decrease in accounts
receivable 197 665 311 700
Decrease in work
in progress 93 538 184 162
Decrease in other accounts
receivable 61 139 78 109
Decrease in tax credits
receivable 898 727 354 52
Decrease in inventory 44 91 - 34
Decrease (increase) in
prepaid expenses 103 (58) 105 221
Increase (decrease) in
accounts payable and
accrued liabilities 248 (1,229) (686) (731)
Increase in deferred
revenue 457 122 150 285
----------------------- -----------------------
2,280 (112) 772 144
----------------------- -----------------------
Financing activities
Repayment of long-term
debt and capital lease
obligations - (7) (425) (50)
Issuance of common shares - - 86 -
Purchase of common shares
for cancellation - (41) (87) (349)
----------------------- -----------------------
- (48) (426) (399)
----------------------- -----------------------
Investing activities
Decrease in short-term
and other investments 1,087 1,420 2,921 1,084
Acquisitions of property
and equipment (20) (109) (196) (323)
Acquisitions of intangible
assets (10) (6) (18) (35)
Increase in long-term
investment - - - (376)
Decrease (increase) in
long-term receivable
including the current
portion 2 - (148) -
----------------------- -----------------------
1,059 1,305 2,559 350
----------------------- -----------------------
Effect of foreign exchange
rate fluctuations on cash
and cash equivalents 110 26 (27) 31
----------------------- -----------------------
Change in cash and cash
equivalents 3,449 1,171 2,878 126
Cash and cash equivalents
- Beginning of Period 609 9 1,180 1,054
----------------------- -----------------------
Cash and cash equivalents
- End of Period 4,058 1,180 4,058 1,180
----------------------- -----------------------
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%SEDAR: 00010494EF