02
Sat, Nov
2 New Articles
  1. You are here:  
  2. Home
  3. News
  4. Industry News
  5. Trends
  6. TECSYS Signs Seven Customers, Generates Impressive Cash Flow

TECSYS Signs Seven Customers, Generates Impressive Cash Flow

Trends
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times
TECSYS Inc., an industry-leading supply chain management software company, has announced its results for the fourth quarter and full fiscal year 2007, ended April 30th. Highlights for the fourth quarter include the following:
  • The Company signed seven new customers, including:
    • ROE Logistics, a Montreal-based global provider of logistics services.
    • Two major Caterpillar dealers in the U.S.
    • One import-to-retail distributor and a giftware manufacturer/distributor in Ontario.
    • Terrace Supply Company, a distributor of welding equipment and supplies in Illinois. telent plc, a leading provider of technology services in the U.K.
  • Revenue increased five percent or $396,000 to $7.8 million in fiscal 2007 compared to $7.4 million for the same quarter of the last fiscal year. Deferred license revenue increased to $1.725 million at the end of the fourth quarter from $1.221 million at the end of the third quarter; an increase of 41 percent.
  • Earnings from operations for the quarter were $46,000 compared to loss from operations of $1.3 million for the same quarter of last fiscal year.
  • EBITDA for Q4, 2007 improved to $126,000 compared to negative EBITDA of $1.154 million for Q4, 2006.
  • Gross margin percentage increased to 38 percent in Q4 of fiscal year 2007 compared to 32 percent in Q4 of last fiscal year. Gross margin improvement for the quarter includes a substantial increase in services' gross margin to 36 percent in 2007 from 13 percent in 2006.
  • Total operating expenses for the fourth quarter of fiscal year 2007 decreased by $698,000 or 19 percent to $2.9 million, compared to $3.6 million for the same quarter of last fiscal year.
  • Net loss for the quarter was $125,000 ($0.01 per share) compared to net loss of $1.4 million ($0.10 per share) for the fourth quarter of last fiscal year.
  • At the end of the quarter, backlog stood at $15.5 million, up from $14.9 million at the end of Q4 of the prior fiscal year.
  • The company's cash position increased by $2.6 million during the quarter.
"We believe that the positive returns in the second half of the year demonstrate clearly that our strategy is working," said Peter Brereton, president and CEO of TECSYS. "In the second half, after completing a major realignment in our business, both from a market focus and operational standpoint, we have generated operating earnings of $302,000 and $2.7 million in cash. We ended the year in good shape, with a clear focus on winning markets, a solid sales pipeline, a couple of quarters of solid earnings from operations and substantial cash generated." Financial highlights for the full fiscal year include:

  • Revenue for fiscal year 2007 was $31.0 million compared to $33.8 million for last fiscal year.

  • Deferred license revenue increased to $1.725 million at the end of fiscal year 2007 from $946,000 at the end of fiscal year 2006, an 82 percent increase.

  • For fiscal year 2007, EBITDA improved to $446,000 compared to negative EBITDA of $556,000 for last fiscal year.

  • Gross margin increased to 38 percent in 2007 compared to 37 percent in 2006. Gross margin improvement for the year includes a substantial increase in Services' gross margin to 33 percent in 2007 from 29 percent in 2006.

  • Total operating expenses decreased by 8 percent in fiscal year 2007 compared to last fiscal year.

  • Net loss for the year amounted to $554,000 or $0.04 per share, compared to a net loss of $1.6 million or $0.12 per share for last fiscal year.

  • Net loss for the first half of fiscal year 2007 was $865,000. Following strategic restructuring, the Company became profitable in the second half with net earnings of $311,000.

  • After re-payment of the final $425,000 of long term debt and capital lease obligations, cash amounted to $7.2 million at the end of fiscal 2007 compared to $6.9 million at the end of last fiscal year.

  • DSO (Days Sales Outstanding) was reduced to 76 days at the end of fiscal year 2007 compared to 87 days at the end of last fiscal year.

    Loss from operations for fiscal year 2007 was $598,000 and includes $234,000 in restructuring charges that took effect in the second quarter. Loss from operations for fiscal year 2006 was $1.2 million. After accounting for an exchange loss of $95,000, net interest income of $173,000 and a share of net loss of $34,000 from a company in which TECSYS has an equity interest, net loss for fiscal year 2007 was $554,000 or $0.04 per share compared to a net loss of $1.6 million or $0.12 per share for last fiscal year. Results for the full 2007 fiscal year are audited. All dollar amounts are expressed in U.S. currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP).

    About TECSYS

    TECSYS is a leading supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company's customers include about 800 mid-size and Fortune 1000 corporations in healthcare, giftware, office products, third-party logistics, and general wholesale high-volume distribution markets. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS. For solutions and general info, contact: This email address is being protected from spambots. You need JavaScript enabled to view it.; for investor relations, This email address is being protected from spambots. You need JavaScript enabled to view it., media relations, This email address is being protected from spambots. You need JavaScript enabled to view it. or call TECSYS Inc. at (514) 866-0001 or (800) 922-8649.

    MC Press Online's staff of reporters and editors are trained professionals who share a background in journalism and have a passion for technology. Many have been in the IBM midrange industry for more than 20 years and have a keen sense of what's important to IBM i and Power Systems users. If you have a news tip, story idea, or press release, email it to This email address is being protected from spambots. You need JavaScript enabled to view it..

    • BLOG COMMENTS POWERED BY DISQUS

    LATEST COMMENTS

    Support MC Press Online

    $

    Book Reviews

    Resource Center

    • SB Profound WC 5536 Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application. You can find Part 1 here. In Part 2 of our free Node.js Webinar Series, Brian May teaches you the different tooling options available for writing code, debugging, and using Git for version control. Brian will briefly discuss the different tools available, and demonstrate his preferred setup for Node development on IBM i or any platform. Attend this webinar to learn:

    • SB Profound WP 5539More than ever, there is a demand for IT to deliver innovation. Your IBM i has been an essential part of your business operations for years. However, your organization may struggle to maintain the current system and implement new projects. The thousands of customers we've worked with and surveyed state that expectations regarding the digital footprint and vision of the company are not aligned with the current IT environment.

    • SB HelpSystems ROBOT Generic IBM announced the E1080 servers using the latest Power10 processor in September 2021. The most powerful processor from IBM to date, Power10 is designed to handle the demands of doing business in today’s high-tech atmosphere, including running cloud applications, supporting big data, and managing AI workloads. But what does Power10 mean for your data center? In this recorded webinar, IBMers Dan Sundt and Dylan Boday join IBM Power Champion Tom Huntington for a discussion on why Power10 technology is the right strategic investment if you run IBM i, AIX, or Linux. In this action-packed hour, Tom will share trends from the IBM i and AIX user communities while Dan and Dylan dive into the tech specs for key hardware, including:

    • Magic MarkTRY the one package that solves all your document design and printing challenges on all your platforms. Produce bar code labels, electronic forms, ad hoc reports, and RFID tags – without programming! MarkMagic is the only document design and print solution that combines report writing, WYSIWYG label and forms design, and conditional printing in one integrated product. Make sure your data survives when catastrophe hits. Request your trial now!  Request Now.

    • SB HelpSystems ROBOT GenericForms of ransomware has been around for over 30 years, and with more and more organizations suffering attacks each year, it continues to endure. What has made ransomware such a durable threat and what is the best way to combat it? In order to prevent ransomware, organizations must first understand how it works.

    • SB HelpSystems ROBOT GenericIT security is a top priority for businesses around the world, but most IBM i pros don’t know where to begin—and most cybersecurity experts don’t know IBM i. In this session, Robin Tatam explores the business impact of lax IBM i security, the top vulnerabilities putting IBM i at risk, and the steps you can take to protect your organization. If you’re looking to avoid unexpected downtime or corrupted data, you don’t want to miss this session.

    • SB HelpSystems ROBOT GenericCan you trust all of your users all of the time? A typical end user receives 16 malicious emails each month, but only 17 percent of these phishing campaigns are reported to IT. Once an attack is underway, most organizations won’t discover the breach until six months later. A staggering amount of damage can occur in that time. Despite these risks, 93 percent of organizations are leaving their IBM i systems vulnerable to cybercrime. In this on-demand webinar, IBM i security experts Robin Tatam and Sandi Moore will reveal:

    • FORTRA Disaster protection is vital to every business. Yet, it often consists of patched together procedures that are prone to error. From automatic backups to data encryption to media management, Robot automates the routine (yet often complex) tasks of iSeries backup and recovery, saving you time and money and making the process safer and more reliable. Automate your backups with the Robot Backup and Recovery Solution. Key features include:

    • FORTRAManaging messages on your IBM i can be more than a full-time job if you have to do it manually. Messages need a response and resources must be monitored—often over multiple systems and across platforms. How can you be sure you won’t miss important system events? Automate your message center with the Robot Message Management Solution. Key features include:

    • FORTRAThe thought of printing, distributing, and storing iSeries reports manually may reduce you to tears. Paper and labor costs associated with report generation can spiral out of control. Mountains of paper threaten to swamp your files. Robot automates report bursting, distribution, bundling, and archiving, and offers secure, selective online report viewing. Manage your reports with the Robot Report Management Solution. Key features include:

    • FORTRAFor over 30 years, Robot has been a leader in systems management for IBM i. With batch job creation and scheduling at its core, the Robot Job Scheduling Solution reduces the opportunity for human error and helps you maintain service levels, automating even the biggest, most complex runbooks. Manage your job schedule with the Robot Job Scheduling Solution. Key features include:

    • LANSA Business users want new applications now. Market and regulatory pressures require faster application updates and delivery into production. Your IBM i developers may be approaching retirement, and you see no sure way to fill their positions with experienced developers. In addition, you may be caught between maintaining your existing applications and the uncertainty of moving to something new.

    • LANSAWhen it comes to creating your business applications, there are hundreds of coding platforms and programming languages to choose from. These options range from very complex traditional programming languages to Low-Code platforms where sometimes no traditional coding experience is needed. Download our whitepaper, The Power of Writing Code in a Low-Code Solution, and:

    • LANSASupply Chain is becoming increasingly complex and unpredictable. From raw materials for manufacturing to food supply chains, the journey from source to production to delivery to consumers is marred with inefficiencies, manual processes, shortages, recalls, counterfeits, and scandals. In this webinar, we discuss how:

    • The MC Resource Centers bring you the widest selection of white papers, trial software, and on-demand webcasts for you to choose from. >> Review the list of White Papers, Trial Software or On-Demand Webcast at the MC Press Resource Center. >> Add the items to yru Cart and complet he checkout process and submit

    • Profound Logic Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application.

    • SB Profound WC 5536Join us for this hour-long webcast that will explore:

    • Fortra IT managers hoping to find new IBM i talent are discovering that the pool of experienced RPG programmers and operators or administrators with intimate knowledge of the operating system and the applications that run on it is small. This begs the question: How will you manage the platform that supports such a big part of your business? This guide offers strategies and software suggestions to help you plan IT staffing and resources and smooth the transition after your AS/400 talent retires. Read on to learn: