- Founded in 1983. Headquartered in Montreal, Canada.
- Market-leading provider of supply chain execution solutions
- Serving the healthcare, third-party logistics and high-volume distribution industries
- Over 600 customers, several thousand sites in North America, Europe, Latin America
- Publicly traded on the TSX since 1998 (TSX: TCS
To deliver the highest value to our clients, with unparalleled industry solutions that are based on our advanced, proven technologies and feature-rich enterprise suite of applications.
TECSYS is a leading provider of warehouse management software, distribution management software, and transportation management software, as well as complete financial management and analytics. The Company's customers include mid-size and Fortune 1000 corporations in healthcare, third-party logistics and high-volume distribution industries such as import-to-retail, industrial distribution, and service parts.
TECSYS has built its business and its reputation through a single-minded focus on warehousing and distribution operations and by developing robust, innovative products and leading expertise. The Company employs a seasoned team of supply chain management experts who differentiate TECSYS and who have extensive experience deploying TECSYS' technology in high-volume warehousing and distribution environments.
According to Gartner, customer business goals are becoming more focused on revenue and growth generation, rather than cost refinement, efficiency and productivity that were a preoccupation in previous years. The elevation of improving the customer experience, driving growth through supply chain innovation strongly suggests that organizations are looking for ways to make their previous cost cuts sustainable. This will demand that they make processes more effective and would require supply chain technologies and proven processes that can help them deliver on these objectives.
Furthermore, there is a stronger sentiment for increased budgets and spending for supply chain technologies that is reminiscent of 2007, with buying sentiment looking more favorable for best-of-breed applications such as TECSYS'.
Although cost optimization remains a primary supply chain objective, improving operational efficiency and the customer experience rose in importance, which, combined, indicates that cost slashing is bottoming out. From a growth perspective, Gartner estimates that the 2012 market will have grown 7.7% and will exceed $9.0 billion in 2013. Gartner's forecast outlook for supply chain applications is estimated to have a 9% five-year compounded annual growth rate (CAGR) through 2016; a significant and healthy market.
Today, against the backdrop of the supply chain management customer priorities, TECSYS has the competitive strengths, people, technology and strategy to continue to be in a strong position and grow. We have the number one market share in our core vertical markets — and we continue to extend this lead by winning more business with proven strength in innovation, technology and expertise at the heart of our customers' supply chains.
How We Build Shareholder Value
- Focus on vertical markets: Prospective clients who have both the need and the financial resources.
- Leverage our technology and industry experience/expertise: TECSYS' key differentiators present a high barrier to entry.
- Build a recurring revenue stream: Currently represents 39% of revenue (end of FY2017) and growing.
- Strengthen our market position: Recognized by Gartner as a visionary, and a dominant supplier for health systems.
- Manage growth: High ROI and profitability.
- Consistently generate cash.
- Current dividend payouts: 20 cents/share/year, paid quarterly.
Improved Returns to Shareholders
Our strategy to grow EPS relies on revenue growth, increasing recurring revenue, and having tight control on operating expenses. We are positive about the opportunities ahead, particularly due to our strong market position, new product introduction and our solid pipeline. We remain focused on further penetrating our existing vertical markets and improving our market share. We continue to build our recurring revenue for the future and expand our offerings to our existing clients. With these pillars in place, we feel confident about the future.
Q4 FY2017 Results
FY2017 Financial Snapshot
$000 except for EPS and ROE
|Profit from Operations
|Cash from Operations
We have earned a market-leading position in the following industries:
- Health systems (IDNs)
- Service parts distribution
- General high-volume distribution
Our customer base:
- Has the need
- Is well capitalized, good for the long haul
- Is a major source for repeat and sustainable business
- Provides recurring revenue of approximately 38% of annual revenue (at the end of FY2014)
TECSYS is a market-leading provider of warehousing and distribution solutions. The Company develops and markets its enterprise warehouse management software, distribution management software and transportation management software, along with related professional and support services. TECSYS also markets third-party products including those developed by partners such as Oracle Corporation, IBM Corporation, Psion Inc., Cognos Incorporated, and Intermec Systems Corporation.
TECSYS' competitive advantage lies in the expertise of its professionals, its state-of-the-art, proven technology, its customer focus, and its agility.
People & Expertise
- More than 75% of TECSYS staff have 10–25 years of experience in warehousing and distribution.
- TECSYS staff have deep and unique expertise in the vertical markets the Company serves.
- TECSYS staff are customer- and people-oriented — very high on customers' decision-making priorities.
- TECSYS' technology is integrated — a strong competitive advantage, providing high ROI to customers.
- TECSYS applications respond effectively to customer business requirements — moving goods efficiently, tracking products and orders, and providing unprecedented visibility into customers' supply chains.
- TECSYS products are very user-friendly.
- TECSYS solutions are specific to client needs in specific market segments.
- TECSYS focuses on a repeat business model, from product, expertise and execution points of view, that enables cost reduction, improved ROI, increased depth of expertise, and enhanced competitive advantage.
TECSYS' infrastructure is nimble and flexible, enabling the Company to:
- Move quickly and efficiently;
- Be more responsive than the competition.
TECSYS generates revenue both from products and services. On the product side, it licenses proprietary software and resells third-party software and hardware. For information on the breakdown of sales, please see TECSYS' annual and quarterly reports.
On the services side, the Company's sources of revenue are professional fees associated with implementation assistance, consulting, training, product adaptations, and recurring revenue from hosting services, maintenance contracts and customer support.
TECSYS is publicly traded on the Toronto Stock Exchange. Major shareholders include the Brereton family and institutional investors.
Since going public, the Company has not issued shares to the general public. However, TECSYS has issued shares pursuant to the exercise of special warrants and stock options under its employee stock option plan, and has issued common shares pursuant to private placements.
The Company has periodically issued bids for the repurchase of common shares for cancellation under the Normal Course Issuer Bid (NCIB). Since its initial public offering, the Company has repurchased a significant number of outstanding common shares. For further details see the Stock Buy-Back section of this Web site.
The two primary sources of information on the Supply Chain Management Industry are:
Industry media such as:
Industry research organizations such as: