TECSYS Reports Financial Results for First Quarter Fiscal 2018

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TECSYS (TSX:TCS) has announced its results for the fiscal year 2018, ended July 31, 2017. As quoted in the press release: All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS) and are unaudited. “The first quarter of our fiscal year covers the summer months and …

TECSYS (TSX:TCS) has announced its results for the fiscal year 2018, ended July 31, 2017.
As quoted in the press release:

All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS) and are unaudited.
“The first quarter of our fiscal year covers the summer months and is typically our slowest quarter. This year however we experienced increased sales activity in the quarter resulting in a record level of contract bookings for a first quarter. Included in the new bookings is a contract from a provincial liquor board, the fourth to choose TECSYS for its SCM needs and another from one of our largest existing customers for additional distribution centre deployment,” said Peter Brereton, President and CEO of TECSYS Inc. “The continued adoption of TECSYS solutions as the standardized platform for our customers and entire sectors is a testament to both the agility and reliability of our software. Today’s rapidly evolving supply chain requires agile solutions that the old monolithic systems struggle to provide.”
“In order to provide more clarity to our investors, beginning this quarter we have regrouped cloud, maintenance and subscription revenue on a separate line on the Consolidated Statements of Income and Comprehensive Income. This revenue stream, which is mostly recurring in nature, grew by 7% in the quarter,” said Brian Cosgrove, the Chief Financial Officer of TECSYS Inc.
First Quarter Highlights:
Total revenue was $16.5 million, 3% higher than $16.1 million for Q1 2017.
Proprietary products revenue remained flat at $1.2 million, compared to Q1 2017.
Cloud, maintenance and subscription revenue increased to $7.1 million, 7% higher than $6.6 million for Q1 2017.
Professional services revenue was $6.1 million, compared to $6.2 million in Q1 2017.
Total gross profit margin was flat at 47% compared to Q1 2017.
Operating expenses increased to $7.7 million, compared to $7.4 million for Q1 2017.
Profit from operations was $65,000, compared to $243,000 for the same period in fiscal 2017.
Profit was $69,000 or $0.01 per share in Q1 2018 compared to $128,000 or $0.01 per share for Q1 2017.
EBITDA was $687,000, compared to $814,000 for Q1 2017.
Total contract value bookings amounted to $9.9 million, a 64% increase over $6.0 million for Q1 2017.
Cash and cash equivalents totaled $23.2M at the end of Q1 2018 compared to $13.5M at the end of Q4 2017.
“The strong bookings are expected to translate into revenue growth in future quarters. In the meantime, we experienced increasing operating costs and lower profits in the quarter as we incurred sales commission expenses and applied additional resources to ensure a successful launch of a new point-of-use healthcare solution,” added Mr. Brereton. “The solution is now live at a large U.S. hospital network and will serve as a model for further implementations in fiscal 2018.”