TECSYS Reports Fiscal 2016 First Quarter Financial Results, Records 15% Revenue Growth, 24% Recurring Revenue Growth
MONTREAL, September 10, 2015 — TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company, today announced its results for the first quarter of fiscal year 2016, ended July 31, 2015.
All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS) and are unaudited.
First Quarter Highlights:
- Revenue grew 15% to $14.9M in Q1 2016 compared to $13.0M in Q1 2015.
- Proprietary products revenue grew 3% to $2.1M.
- Services revenue improved by 18% to $10.3M.
- Gross margin in Q1 2016 reached 50% compared to 47% in Q1 2015, owing to improved gross margin from services of 47%, up from 41% in Q1 2015.
- Recurring revenue on an annualized basis grew to $23.0M, a 24% improvement compared to the end of Q1 2015, representing 39% of the last 12 months trailing revenue.
- EBITDA was $0.8M for Q1 2016, compared to $1.0M recorded in Q1 2015.
- Profit from operations was $207K in Q1 2016, compared to $474K in Q1 2015.
- Total contract bookings in the first quarter totaled $6.7M, compared to $9.7M in the prior year period.
- Backlog grew to $44.8M at the end of Q1 2016 from $33.6M at the end of Q1 2015, a 33% increase.
- Net cash from operating activities amounted to $2.0M in Q1 2016 compared to $286K in Q1 2015.
- Cash and cash equivalents totaled $11.9M at the end of Q1 2016 compared to $10.8M at the end of Q4 2015.
- Signed 2 new Hospital Networks (IDNs) in the United States including one that distributes to several smaller IDNs
"Our team continues to make great progress capitalizing on our strong order backlog and sales pipeline, resulting in progressive revenue expansion and gross margin improvement," said Peter Brereton, President and CEO of TECSYS Inc. "We signed two new IDNs in the quarter, further evidence of the positive response we’ve seen from our clients to the value proposition our robust platform affords them. In response to this continued market momentum, we have significantly increased our investment in sales, marketing, and R&D in order to capitalize on the opportunity we see in this space. We are in an excellent position within our core markets and see a great opportunity to grow our business and continue to deliver solid results."
TECSYS also announced that the Company’s Board of Directors has declared a quarterly dividend of $0.025 per share, to be paid on October 9, 2015 to shareholders of record at the close of business on September 25, 2015.
First Quarter 2016 Results Conference Call
Date: September 10, 2015
Time: 4:30 pm EST
Phone number: 800-728-2059 or 416-981-9030
The call can be replayed by calling 800-558-5253 (access code: 21775872) or 416-626-4100 (access code: 21775872).
View the Q1 FY2016 Financial Statements (PDF, 58K)
TECSYS provides transformative supply chain solutions that equip our customers to succeed in a rapidly-changing omni-channel world. TECSYS solutions are built on a true enterprise supply chain platform, and include warehouse management, distribution and transportation management, supply management at point-of-use, as well as complete financial management and analytics solutions. Customers running on TECSYS' Supply Chain Platform are confident knowing they can execute, day in and day out, regardless of business fluctuations or changes in technology, they can adapt and scale to any business need or size, and they can expand and collaborate with customers, suppliers and partners as one borderless enterprise. From demand planning to demand fulfillment, TECSYS puts power into the hands of both front line workers and back office planners, and unshackles business leaders so they can see and manage their supply chains like never before.
TECSYS is the market leader in supply chain solutions for health systems and hospitals. Over 600 mid-size and Fortune 1000 customers trust their supply chains to TECSYS in the healthcare, service parts, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.
Forward Looking Statements
The statements in this web site 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, 2017. These documents have been filed with the Canadian securities commissions and are available on this Web site and on SEDAR .
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