TECSYS Reports Record Recurring Revenue, Signs One of The Largest IDNs in the U.S.

MONTREAL, March 1, 2016 — TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company, today announced its results for the third quarter of fiscal year 2016, ended January 31st, 2016. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS) and are unaudited.

Third Quarter Highlights:

"We were pleased to see that we grew recurring revenue by 19% this quarter as it is a key driver to value creation," said Peter Brereton, President and CEO of TECSYS Inc. "Our services revenue grew by 25% primarily as a result of the strong backlog at the beginning of the quarter. We were also able to leverage our services organization, improving gross margin to 45% compared to 35% in the corresponding quarter of last year. While this was not a high growth quarter from a revenue standpoint, we were in the final stages of a product build cycle for which we have firm orders for our next generation product line.".

"We have significantly ramped up our investment in Sales & Marketing over the last 18 months. We are satisfied with the progress being made with the larger team and expect to see this starting to impact our top line in the coming months. Our backlog hit a new record and we have signed our largest IDN in our history during the quarter after signing another marquee name in Q2. This type of client represents great opportunity for further expansion of the business relationship," Mr. Brereton added.

Highlights of the First Nine Months:

TECSYS also announced that the Company’s Board of Directors has declared a quarterly dividend of $0.025 per share, to be paid on April 12, 2016 to shareholders of record at the close of business on March 22, 2016.

Third Quarter 2016 Results Conference Call

Date: March 2, 2016
Time: 8:30 am EST
Phone number: 416-359-3130 or 800-670-5957.

The call can be replayed by calling 800-558-5253 or 416-626-4100 (access code: 21806779).

  View the Q3 FY2016 Financial Statements (PDF, 43K)


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 .

Copyright © TECSYS Inc. 2018. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.