TECSYS Reports Fiscal 2014 Fourth Quarter and Year-End Financial Results, Doubles Annual Net Profit

MONTREAL, QUEBEC--(Marketwired - July 8, 2014) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, today announced its results for the fourth quarter and 2014 fiscal year, ended April 30^th, 2014.

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

Fourth Quarter Highlights:

• Revenue increased by 12% to $12.5M in Q4 2014 compared to $11.1M in Q4 2013.
• EBITDA grew by 68% to $1,258K compared to $748K in Q4 2013.
• Profit from Operations increased to $757K in Q4 2014, compared to $256K in Q4 2013.
• Net profit increased to $640K or $0.06 per share, compared to $181K or $0.02 per share in Q4, 2013.
• Services revenue improved by 6% to $7.8M and enhanced services profit margin to 35% from 29% as the professional services organization continued improving their capacity.
• Recurring revenue on an annualized basis grew to $17.6M, a 15% jump compared to the end of Q4 2013, representing 38% of the last twelve months trailing revenue.
• Bookings for the quarter were $9M, including $1.8M in total contract value from six new accounts.
• Go-lives at twelve customers' sites, most notably: one Hospital Network, three service parts operations of which two are in the heavy equipment industry and the other one is in the imaging industry.
• Backlog was a record $29.2M at the end of Q4 2014 compared to $27.2M at the end of Q4 2013.
• Cash and cash equivalents amounted to $8.8M compared to $5.3M at the end of Q4 2013.
• Subsequent to the quarter, the Company acquired Logi-D Holding Inc., a leading provider of point-of-use technology for supply chain automation servicing hospitals and healthcare organizations based in Laval, Quebec for a total purchase price of $3.05M.

TECSYS also announced that the Company's Board of Directors has approved changing the dividend policy from a semi-annual basis to a quarterly basis. To this effect, the Board has declared a quarterly dividend of $0.0225 per share, an increase of 12.5%, to be paid on August 6^th, 2014 to shareholders of record on July 22^nd, 2014.

"In the fourth quarter we continued building momentum, growing our bottom line through improved services margin and realizing higher proprietary product revenues," said Peter Brereton, President and CEO of TECSYS Inc. "The investments we made in the Company started to show their value this year as we improved operationally, and with the acquisition of Logi-D in the first quarter of 2015, we are in an excellent position to accelerate our growth and extend our leadership in our key markets."

Highlights of the 2014 Fiscal Year:

• Revenue increased 6% to $46.6M compared to $43.8M for the last fiscal year. Service revenue increased 10% to $30.2M compared to $27.5M in fiscal 2013. Service gross profit margin improved to 35% from 27% last fiscal year.
• Profit from operations was $2.3M for fiscal 2014 compared to $1.3M for fiscal 2013, a 77% improvement.
• EBITDA was $4.1M in fiscal 2014 compared to $3.0M last year.
• Net profit was $1.8M or $0.16 per share for fiscal 2014 compared to $0.9M or $0.08 per share for the same period last year.

Fourth Quarter 2014 Results Conference Call

Date: July 8^th, 2014

Time: 4:30 pm EST

Phone number: 800-732-8470 or 416-981-9035

The call can be replayed by calling 800-558-5253 (access code: 21722138) or 416-626-4100 (access code: 21722138).

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 over 600 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.

The statements in this news release 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, 2013. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR (www.sedar.com).

Copyright © TECSYS Inc. 2014. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.