MONTREAL, Sept. 11 /CNW Telbec/ - TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company announced today its results for the first quarter of fiscal year 2008, ended July 31st, 2007. All dollar amounts are expressed in U.S. currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP) and are unaudited.
Highlights of the First Quarter include:
- Revenue was $7.8M in Q1 of fiscal year 2008, the same as Q1 for last fiscal year. - Deferred license revenue was $2.2M at the end of the first quarter of fiscal 2008, up from $1.7M at the end of the fourth quarter of fiscal year 2007; an increase of $456K, and up from $1.0M at the end of the first quarter of fiscal year 2007; an increase of $1.2M. - Earnings from operations for the quarter were $141K compared to loss from operations of $256K for the same quarter of last fiscal year. - EBITDA for Q1, 2008 substantially improved to $300K compared to $52K for Q1, 2007. - Net earnings for the quarter were $82K or $0.01 per share after a loss on foreign exchange of $128K compared to net loss of $174K or $0.01 per share for the first quarter of last fiscal year. - Gross margin percentage increased to 44% in Q1 of fiscal year 2008 compared to 40% in Q1 of last fiscal year. Gross margin improvement reflects an increase in gross margins of both products and services compared to the same period in last fiscal year. - Total operating expenses for the first quarter of fiscal year 2008 decreased by $81K to $3.3M or 2%, compared to $3.4M for the same quarter of last fiscal year. - At the end of the quarter, backlog stood at $16.0M, up from $15.5M at the end of Q4 of the prior fiscal year.
Peter Brereton, President and CEO of TECSYS Inc. commented on the results: "Q1 reflects the continued improvement to our financial results that have seen a major shift to profitability during the last three quarters. Our EBITDA is up substantially in Q1 of 2008 compared to Q1 of 2007 and we continued to generate cash. I am particularly pleased with the wins in the markets where we have focused and it is clearly reflected in the substantial growth in deferred licence revenue. The successful deployment of a record number of key accounts in healthcare, heavy equipment dealers and high volume distributors that went live on our solutions in this quarter also demonstrates our success in these market segments."
The Company signed five new customers, including:
- A major heavy equipment dealer in the U.S.
- An import-to-retail distributor in Idaho
- A leading supplier of packaging products in Alberta
- A 35-clinic regional healthcare organization in Mississippi
- A University in Western Canada
About TECSYS
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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, 2007. 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)
July 31, April 30,
2007 2007
(unaudited)
---------------------------------
Assets
Current assets
Cash and cash equivalents 5,920 4,058
Short-term and other investments 754 2,509
Accounts receivable 6,805 6,242
Work in progress 357 271
Other accounts receivable 177 169
Tax credits receivable 1,240 983
Inventory 166 145
Prepaid expenses 775 500
---------------------------------
16,194 14,877
Restricted cash equivalents
and other investments 632 609
Long-term receivable 153 110
Long-term investment 261 257
Property and equipment, net 1,689 1,672
Intangible assets 1,312 1,385
Deferred development costs 778 672
Goodwill 2,148 2,068
---------------------------------
23,167 21,650
---------------------------------
---------------------------------
Liabilities
Current liabilities
Accounts payable and accrued
liabilities 3,954 4,367
Current portion of long-term debt 100 97
Deferred revenue 4,741 3,420
---------------------------------
8,795 7,884
Shareholders' equity
Capital stock 38,177 38,188
Contributed surplus 7,299 7,293
Accumulated other comprehensive income 3,808 3,279
Deficit (34,912) (34,994)
---------------------------------
14,372 13,766
---------------------------------
23,167 21,650
---------------------------------
---------------------------------
TECSYS Inc.
Consolidated Statements of Deficit
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
Three Months Three Months
Ended Ended
July 31, July 31,
2007 2006
(unaudited) (unaudited)
---------------------------------
---------------------------------
Balance - Beginning of period (34,994) (34,440)
Net earnings (loss) for the period 82 (174)
---------------------------------
Balance - End of period (34,912) (34,614)
---------------------------------
---------------------------------
TECSYS Inc.
Consolidated Statements of Accumulated Other Comprehensive Income
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
Three Months Three Months
Ended Ended
July 31, July 31,
2007 2006
(unaudited) (unaudited)
---------------------------------
---------------------------------
Balance - Beginning of period 3,279 3,085
Translation adjustment 529 (110)
---------------------------------
Balance - End of period 3,808 2,975
---------------------------------
---------------------------------
TECSYS Inc.
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 Months Three Months
Ended Ended
July 31, July 31,
2007 2006
(unaudited) (unaudited)
---------------------------------
---------------------------------
Revenue
Products 2,707 3,021
Services 4,881 4,525
Reimbursable expenses 221 278
---------------------------------
7,809 7,824
Cost of revenue
Products 1,124 1,470
Services 3,036 2,964
Reimbursable expenses 221 278
---------------------------------
4,381 4,712
---------------------------------
Gross margin 3,428 3,112
---------------------------------
Operating expenses
Sales and marketing 1,261 1,430
General and administration 765 724
Gross research and development 1,157 1,187
Research and development tax credits (97) (106)
Deferred development costs (92) (155)
Stock-based compensation 10 14
Amortization of property and equipment 124 132
Amortization of intangible assets 148 142
Amortization of deferred
development costs 11 -
---------------------------------
3,287 3,368
---------------------------------
Earnings (loss) from operations 141 (256)
Interest income 78 77
Interest expense (3) (19)
Foreign exchange (losses) gains (128) 34
Share of net loss of a company subject
to significant influence (6) (10)
---------------------------------
Net earnings (loss) for the period 82 (174)
---------------------------------
---------------------------------
Weighted average number of common
shares outstanding
- basic 13,679,127 13,628,423
---------------------------------
- diluted 13,711,871 13,628,423
---------------------------------
Basic and diluted net loss per
common share ( in US dollars ) $ 0.01 $ (0.01)
---------------------------------
---------------------------------
TECSYS Inc.
Consolidated Statements of Comprehensive Income
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars, except share and per share data)
Three Months Three Months
Ended Ended
July 31, July 31,
2007 2006
(unaudited) (unaudited)
---------------------------------
---------------------------------
Net earnings (loss) for the period 82 (174)
Other comprehensive income (loss)
Translation adjustment 529 (110)
---------------------------------
Comprehensive income (loss) 611 (284)
---------------------------------
TECSYS Inc.
Consolidated Statements of Cash Flows
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
Three Months Three Months
Ended Ended
July 31, July 31,
2007 2006
(unaudited) (unaudited)
---------------------------------
---------------------------------
Cash flows from
Operating activities
Net earnings (loss) for the period 82 (174)
Adjustments for
Amortization of property and equipment 124 132
Amortization of intangible assets 148 142
Amortization of deferred development
costs 11 -
Stock-based compensation 10 14
Unrealized foreign exchange losses
(gains) 102 (8)
Deferred development costs (92) (154)
Share of net loss of a company subject
to significant influence 6 10
Changes in non-cash working capital
items related to operations
Increase in accounts receivable (334) (754)
(Increase) decrease in work in
progress (35) 22
Increase in other accounts
receivable (10) (5)
Increase in tax credits receivable (219) (189)
(Increase) decrease in inventory (14) 9
(Increase) decrease in prepaid
expenses (258) 127
Decrease in accounts payable and
accrued liabilities (617) (14)
Increase (decrease) in deferred
revenue 1,150 (395)
---------------------------------
54 (1,237)
---------------------------------
Financing activities
Repayment of long-term debt and
capital lease obligations - (6)
Issuance of common shares 3 -
Purchase of common shares for
cancellation (8) (66)
---------------------------------
(5) (72)
---------------------------------
Investing activities
Decrease in short-term and other
investments 1,840 1,574
Acquisitions of property and
equipment (77) (32)
Acquisitions of intangible assets (23) -
Increase in long-term receivable
including the current portion (30) (50)
---------------------------------
1,710 1,492
---------------------------------
Effect of foreign exchange rate
fluctuations on cash
and cash equivalents 103 (8)
---------------------------------
Change in cash and cash equivalents 1,862 175
Cash and cash equivalents -
Beginning of Period 4,058 1,180
---------------------------------
Cash and cash equivalents -
End of Period 5,920 1,355
---------------------------------
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