TECSYS Reports 18% Revenue Growth in Q2

Revenue for the company increased 18% to $10.7M in the second quarter of 2013 compared to $9.1M in the same quarter of 2012. Profit from operations for the second quarter, 2013 increased to $428K compared to $170K in Q2, 2012. During the quarter, the Company won the business of five new clients.

TECSYS Inc., an industry-leading supply chain management software company, announced today its results for the second quarter of fiscal year 2013, ended October 31st, 2012. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.

Second Quarter Financial Summary:

-- Revenue increased 18% to $10.7M in Q2, 2013 compared to $9.1M in Q2, 2012.-- Profit from operations for the second quarter, 2013 increased to $428K compared to $170K in Q2, 2012. -- Due to the rising stock price, option expense surged to $313K in the quarter reflecting the non-dilutive measure taken by the company of cash settling options. -- EBITDA for Q2, 2013 increased to $613K ($926K prior to revaluation of the fair value of the share options liability) compared to $517K in Q2 of last fiscal year ($555K prior to revaluation of the fair value of the share options liability). -- Net profit for the second quarter, 2013 was $122K or $0.01 per share ($435K or $0.04 prior to revaluation of the fair value of the share options liability) compared to $133K or $0.01 per share for the second quarter of last fiscal year ($171K or $0.01 prior to revaluation of the fair value of the share options liability). -- At the end of Q2, 2013 annualized recurring revenue in Canadian currency increased to $15.5M, or 36% of the last twelve months trailing revenue, from $14.4M at the end of Q2 of last fiscal year. -- Backlog at the end of Q2, 2013 was $25.5M compared to $21.5M at the end of Q2, 2012. -- Cash flow from operations prior to changes in non-cash working capital amounted to $934K in Q2, 2013 compared to $694K in Q2, 2012. -- Cash, cash equivalents and other short-term investments amounted to $8.1M at the end of Q2, 2013, compared to $4.9M at the end of Q2, 2012. The substantial increase in cash and cash equivalents is attributable to the financing transaction concluded and announced on November 1st, 2012.

Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "Our top line continued to improve with double-digit growth in Q2, 2013 as we delivered 18% growth in revenue and 21% growth in bookings compared to last year. The quarter marked the beginnings of the resurgence in the hospital supply network market with a win of a mid-size organization in this space and further penetration of the educational market with our unique self-distribution value proposition. We continued to ramp up the resources of our consulting practice to meet the growing demand for our services; the results of this initiative is starting to pay off with a significantly stronger execution infrastructure and improved top line."

During the quarter, the Company won the business of five new clients including:

-- A $1.6 billion Hospital Supply Network in the U.S. -- An independent school district in the U.S. -- An innovative, educational resource supplier in the U.K. -- A leading giftware and collectibles distributor in Canada -- An industrial distributor in Canada

TECSYS also signed a significant number of new business agreements with existing clients and deployed its supply chain execution solutions at a number of customers from across its business units in Canada and the United States.

First Half Financial Summary:

-- Revenue for the first half, 2013 increased 23% to $22.3M compared to $18.1M for the same period of last fiscal year. -- Profit from operations for the first half, 2013 increased significantly to $1,476K compared to $342K for the same period in last fiscal year. -- EBITDA for the first half, 2013 reached $2,246K compared to $1,047K for the first half of 2012. -- Net profit for the first half of fiscal, 2013 increased to $1,247K or $0.11 per share compared to $279K or $0.02 per share for the same period of the prior fiscal year. -- Cash flow from operations prior to changes in non-cash working capital amounted to $2.4M for the first half, 2013 compared to $1.4M for the first half of 2012.

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