Posted December 6, 2016

TECSYS reports Q2 2017 results

Recurring revenue rises 15 percent, dividend increases by 50 percent.

TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, has announced its results for the second quarter of fiscal year 2017, ended October 31, 2016.

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

Second Quarter Highlights:

  • Total revenue for Q2 2017 increased to $16.5M, $756K or 5% higher, compared to $15.8M for Q2 2016.
  • Recurring revenue on an annualized basis grew 15% compared to Q2 2016 to $26.5M which represents 38% of the last 12 months trailing revenue.
  • Total gross margin percentage in Q2 2017 was 50% compared to 49% in Q2 2016.
  • Operating expenses for Q2 2017 increased to $8.0M, higher by $682K or 9%, compared to $7.3M for the same three-month period last fiscal year.
  • EBITDA of $935K in Q2 2017 compared to $1.2M in Q2 2016.
  • Net profit of $206K, or $0.02 per share, in Q2 2017 compared to $367K, or $0.03 per share, for Q2 2016.
  • Total contract value bookings amounted to $10.9M in Q2 2017 in comparison to $13.4M for Q2 2016.
  • Cash and cash equivalents totalled $11.5M at the end of Q2 2017 compared to $9.7M at the end of fiscal 2016.

"In the second quarter of fiscal 2017, we continued to grow our account base with four new customer contracts signed, including two complex distribution customers, one healthcare organization, and one large hospital network," said Peter Brereton, President and CEO of TECSYS Inc. "Our strategy to grow the complex distribution channel is proving successful with the total contract value signed in the first half of fiscal 2017 already higher than the total amount signed in all of fiscal year 2016."

"New account sales did very well during the quarter with total new account bookings up 50% for the quarter and 30% for the first six months. We experienced some delays in base account upgrades which we believe is attributable to the uncertainty of the U.S. election. Since then, business is coming back to normal and we are optimistic we will be able to execute our strong pipeline in the back-half of our fiscal year.

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