TECSYS Inc., an industry-leading supply chain management ERP software company, announced today its results for the first quarter of fiscal year 2013, ended July 31, 2012. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.
Financial Highlights of the Quarter:
- Revenue increased by 28% to $11.5M in Q1 of fiscal 2013 compared to $9.0M in Q1 of fiscal 2012.
- Gross profit increased by 38% to $5.4M in Q1, 2013 compared to $3.9M in Q1, 2012.
- Profit from operations increased substantially to $1,048K in Q1, 2013 compared to 172K in Q1, 2012.
- EBITDA for Q1, 2013 increased to $1,633K compared to $530K for Q1 of last fiscal year.
- Net profit for Q1, 2013 was $1,125K or $0.10 per share, compared to $146K or $0.01 per share for the first quarter of last fiscal year.
- Annualized recurring revenue stood at $15.6M at the end of Q1, 2013, up from $13.8M at the end of Q1, 2012. Recurring revenue for Q1, 2013 represented 37% of revenue for the last twelve months and is principally made-up of annual maintenance services and hosting contracts.
- Backlog at the end of Q1, 2013, reached $26.2M compared to $20.4M at the end of Q1, 2012.
- Cash, cash equivalents and short-term investments amounted to $5.1M at the end of Q1, 2013 compared to $5.2M at the end of Q4, 2012 with no long term debt.
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 October 5, 2012 to shareholders of record on September 21, 2012. This represents an increase of 16.7% from the previous semi-annual dividend.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: “We believe that we have the best supply chain execution suite on the market today and the market is beginning to agree with us. Q1, 2013 was a great quarter. Momentum from Q3 and Q4, 2012 continued in this quarter with a substantial revenue increase compared to last year for both of our products and services, driving gross profit up by 38% and resulting in a ten cent EPS. Our ability to capture major accounts, particularly in the past five years, has significantly improved and solidified our recurring revenue stream. Among the many agreements, this quarter included the signing of a major contract with an existing customer, a Fortune 500 manufacturer and distributor, which contributed to this quarter’s growth and profitability. Furthermore, our investment in our services infrastructure is starting to pay off; we were able to increase delivery to our clients and complete the deployment of nineteen customer sites contributing to a 12% increase in services revenue in Q1.”
During the quarter, the Company signed a significant number of agreements with existing and new clients including:
- Three in the healthcare sector
- Fifteen in general high-volume distribution
- Thirteen in the SMB sector