TECSYS reports record revenue and contract bookings in Q4 2015

Revenues grew 27 percent in Q4 2015 over Q4 2014.

TECSYS Inc,, an industry-leading supply chain management software company, today announced its results for the fourth quarter and 2015 fiscal year, ended April 30, 2015.

All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).

Fourth Quarter Highlights:

  • Revenue grew 27% to $15.8M in Q4 2015 compared to $12.5M in Q4 2014.
  • EBITDA was $955K for Q4 2015, compared to $1.258K recorded in Q4 2014.
  • Proprietary products revenue grew 41% to $3.9M on strong demand from the Company's Logi-D point-of-use products as well as increased healthcare license revenue.
  • Services revenue improved by 16% to $9.1M, while services profit margin grew to 38% from 35% in Q4 2014.
  • Profit from operations was $311K in Q4 2015, compared to $757K in Q4 2014.
  • Profit from operations was reduced by $270K of one-time costs due to the elimination of redundant management positions as various operating units were integrated into a single operating unit. A large new customer signed on a SAAS revenue model basis, resulting in the deferral of approximately $550K of license fees, while on an accounting basis, the bulk of the expenses impacted the quarter.
  • Recurring revenue on an annualized basis grew to $21.3M, a 21% improvement compared to Q4 2014, representing 37% of fiscal 2015 revenue.
  • Total contract bookings in the fourth quarter totaled $16.0M, compared to $9.0M in the prior year period, a 79% increase.
  • Backlog was $44.9M at the end of Q4 2015 compared to $29.2M at the end of Q4 2014, a 54% increase.
  • Cash and cash equivalents totaled $10.8M at the end of Q4 2015 compared to $8.8M at the end of Q4 2014.
  • Signed one Health System (IDN) in the United States with five hospitals and five specialty centers.
  • Go-lives at 23 customers' sites, most notably: two health systems, one third party logistics provider, two sites for a Fortune 300 imaging manufacturer and five new hospital sites with Logi-D products.

"Our fiscal 2015 results demonstrate the inherent growth potential of our innovative solutions as revenue rose substantially and order bookings doubled over the prior year." said Peter Brereton, President and CEO of TECSYS Inc. "New order bookings in the fourth quarter were up almost 80% from last year's fourth quarter and included a significant SAAS agreement. These record bookings impacted the quarter with significant travel and incentive expense while roughly 70% of the related revenues are future. We continued to invest for growth in areas such as marketing and R&D as well as the launch of an additional sales team, allowing one team to concentrate on Healthcare while the other concentrates on Complex Distribution. We begin 2016 in an excellent financial and competitive position and I look forward to updating you on our progress throughout the year."

Highlights of the 2015 Fiscal Year:

  • Revenue increased 23% in fiscal 2015 to $57.3M, compared to $46.6M last fiscal year.
  • EBITDA was $4.4M in fiscal 2015 compared to $4.1M last year.
  • Profit from operations was $1.9M compared to $2.3M in fiscal 2014. Before acquisition related expenses and amortization, profit from operations was $2.3M in both fiscal 2015 and 2014.
  • Net profit in fiscal 2015 was $1.5M, or $0.13 per share, compared to $1.8M, or $0.16 per share in fiscal year 2014. Before acquisition related expenses and amortization, net profit was $1.9M or $0.16 per share in fiscal 2015 compared to $1.8M or $0.16 per share in fiscal 2014.
  • Total contract bookings in fiscal 2015 totaled $47.0M, which includes the addition of six new IDN's. This represents a 97% increase in contract bookings compared to $23.9M in fiscal 2014.

TECSYS also announced that the Company's Board of Directors approved an increase of the quarterly dividend from $0.0225 per share to $0.025 per share, an increase of 11%. To this effect, the Company declared a dividend of $0.025 per share, to be paid on August 6, 2015 to shareholders of record on July 22, 2015.

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