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MONTREAL, QUEBEC -- (Marketwire) -- 02/28/13 -- TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company, announced today its results for the third quarter of fiscal year 2013, ended January 31, 2013. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.
Overall highlights:
-- A 26% rise in proprietary license revenue.-- Strengthened leadership position in healthcare, winning seven new agreements during the quarter with existing and new major clients.-- Increased market share in the heavy equipment dealer market with the signing of five new agreements with new and existing clients during the quarter.-- Existing clients from across its business units continued to invest in products and services - thirty two new agreements were concluded in the quarter.-- Continued to win in the SMB sector, with significant prospecting opportunities for warehouse management systems in this market space.-- Deployed supply chain execution solutions at fourteen customers in Canada and the United States.
Highlights of the Third Quarter include:
-- Revenue was $10.4M in Q3, 2013 compared to $10.6M in Q3, 2012. The slight decline in revenue masks a 26% rise in proprietary license revenue because it was offset by a 34% decline in third party product revenue resulting in a decrease in product revenue of 12%.-- Services revenue rose by 4%.-- For Q3, 2013 EBITDA was negative at $28K compared to EBITDA of $755K in Q3 of last fiscal year.-- Loss from operations for the third quarter, 2013 was $464K compared to profit from operations of $378K in Q3, 2012.-- Net loss for the quarter was $543K or $0.05 per share compared to net profit of $305K or $0.03 per share for the third quarter of last fiscal year.-- Backlog increased to $25.1M at the end of Q3, 2013 from $24.6M at the end of Q3, 2012.-- At the end of Q3, 2013 annualized recurring revenue in Canadian currency increased 4% to $15.4M from $14.8M at the end of Q3, 2012. Annualized recurring revenue at the end of Q3, 2013 represented 35% of the Company's revenue for the last 12 months.-- Cash from operations amounted to $540K for the third quarter, 2013 compared to $1.7M for the same quarter of the prior year.-- Cash, cash equivalents and other short-term investments amounted to $7.7M at the end of Q3, 2013, compared to $5.2M at the end of Q3, 2012.
TECSYS also announced today that the Company's Board of Directors has declared a semi-annual dividend of $0.035/share, to be paid on March 29, 2013 to shareholders of record on March 15, 2013.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "In Q3, we were pleased to see a significant number of new contracts from our client base and major wins in the health systems and heavy equipment dealer markets. We continue to be the market leader in health system supply chains in North America. Our year-to-date revenue and profitability are ahead of last year by 14% and 21% respectively. Our license fee sales are up 26% for the quarter and 70% year-to-date. Over the past year we have grown our human capital infrastructure substantially to respond to our growing demand for services. We have added 85 people and ramped up our expenses by $1.1M compared to Q3 of last year. Most of this was done over the summer and fall. It takes some time for this additional expense to generate revenue. Our strong balance sheet has allowed us to make this aggressive move. The opportunities ahead with our sales pipeline and prospecting business initiatives are both solid and continuing to rise. According to the leading industry analysts firm, the supply chain management industry outlook is positive and is expected to remain prosperous in 2013."
