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TECSYS Announces Financial Results for Q3, 2009; Cites Strong Customer Base Demand

MONTREAL, February 24, 2009—TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company announced today its results for the third quarter of fiscal year 2009, ended January 31st, 2009. All dollar amounts are expressed in Canadian currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP), and are unaudited.

Highlights of the Third Quarter include:

Total revenue was $9.6M in Q3 of fiscal 2009 compared to $10.7M in Q3 of fiscal 2008.
Gross margin percentage was 42% in Q3 of fiscal 2009 compared to 44% in Q3 of last fiscal year.
Earnings from operations for the third quarter of fiscal 2009 were $329K compared to $842K for the same quarter of last fiscal year.
EBITDA for Q3 of fiscal 2009 was $480K compared to $1,108K for Q3 of last fiscal year.
After a loss on exchange of $86K and a further writedown on the Company�s Asset Backed Commercial Paper bookings of $123K, net earnings for the third quarter of fiscal 2009 were $97K or $0.01 per share, compared to $723K or $0.06 per share for the third quarter of last fiscal year.
Annualized return-on-equity was equal to 2.5% in Q3 of fiscal 2009 compared to 18.9% in Q3 of last fiscal year.
At the end of Q3, 2009 annualized recurring revenue stood at $13.4M up from $13.1M at the end of Q2, 2009. Recurring revenue is principally made up of annual software maintenance contracts.
At the end of the third quarter, backlog stood at $20.6 M, up from $20.1M at the end of Q2 of this fiscal year.
During the quarter, the Company generated $1.6M cash from operations.
At the end of Q3, 2009 cash and cash equivalent amounted to $8.2M compared to $6.7M at the end of Q2, 2009 with no significant long term debt.

In accordance with the company�s dividend policy, TECSYS also announced that the Company�s Board of Directors has declared a $0.02/share dividend, to be paid on March 31, 2009 to shareholders of record at the close of business on March 12, 2009.

Peter Brereton, President and CEO of TECSYS Inc. commented on the results: "Q3 of last year was a record quarter and this makes for a tough comparison, but in a quarter where the economy slowed significantly, we grew our backlog, our recurring revenue and our cash. Although the economic climate clearly impacted decision making, resulting in slower product sales, the total value of bookings (including products and services) continued at a solid pace; rising to $6.6M."

During the Quarter, the Company signed four new customers:

The Department of Health for a large U.S. city
A Gas & Welding Supplies distributor in Texas
An Industrial distributor in Saskatchewan
An Industrial distributor in Ontario

Furthermore, TECSYS also signed a substantial number of business contracts with existing customers and completed the go-live of twenty-two projects for customers in Canada and the U.S. Key account go-lives include: VHA and Amerisource in the healthcare sector, three heavy equipment dealers, Entertainment One, Canon USA, and Toyota Canada in the high-volume distribution sector.

Year-to-date Highlights include:

Revenue for the first nine months of fiscal 2009 increased 6% to $30.6M from $28.9M in the same period of last fiscal year.
Earnings from operations for the first nine months of fiscal 2009 were $1,366K compared to $1,960K for the same period in last fiscal year.
EBITDA reached $2,155K in the first nine months, 2009 compared to $2,162K for the first nine months, 2008.
Net earnings for the first nine months of fiscal 2009 were $1,015K or $0.08 per share compared to $1,214K or $0.09 per share for the same period of the prior fiscal year.
Annualized return-on-equity was equal to 8.7% in the first nine months of fiscal 2009 compared to 10.5% for the same period in last fiscal year.

TECSYS' Q3 FY2009 Earnings Conference Call:

Date: February 24, 2009
Time: 4:30 pm
Phone number: 1-800-633-8761 or 1-416-620-5690

The call can be replayed by calling: 1-800-558-5253 (access code: 21415517) or 1-416-626-4100 (access code: 21415517)

View the Q3 FY2009 Financial Statements
(138K)

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 over 500 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.

Contact

Solutions and general info: info@tecsys.com
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
By phone: (514) 866-0001 or (800) 922-8649

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, 2009. These documents have been filed with the Canadian securities commissions and are available on this Web site and on SEDAR (www.sedar.com).