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

MONTREAL, QUEBEC -- (Marketwired) -- 07/08/14 -- 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 30th, 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 6th, 2014 to shareholders of record on July 22nd, 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 8th, 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.


                                                                            
                                                                            
TECSYS Inc.                                                                 
Consolidated Statements of Financial Position                               
As at April 30, 2014 and April 30, 2013                                     
(in thousands of Canadian dollars)                                          
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                              April 30,            April 30,
                                                   2014                 2013
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Current assets                                                              
  Cash and cash equivalents       $               8,839 $              5,348
  Accounts receivable                             9,076                7,959
  Work in progress                                  524                1,291
  Other accounts receivable                          46                  132
  Tax credits                                     2,704                4,675
  Inventory                                         293                  545
  Prepaid expenses                                1,037                1,153
----------------------------------------------------------------------------
Total current assets                             22,519               21,103
----------------------------------------------------------------------------
                                                                            
Non-current assets                                                          
  Restricted cash equivalents                        80                  120
  Non-current receivables                             -                   39
  Tax credits                                     1,350                1,219
  Property and equipment                          2,627                2,928
  Deferred development costs                      4,088                3,317
  Other intangible assets                           508                  544
  Goodwill                                        2,239                2,239
  Deferred tax assets                               714                  710
----------------------------------------------------------------------------
Total non-current assets                         11,606               11,116
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Total assets                      $              34,125 $             32,219
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Liabilities                                                                 
                                                                            
Current liabilities                                                         
  Accounts payable and accrued                                              
   liabilities                    $               5,406 $              4,997
  Loan payable to related party                       -                   70
  Term loan                                       1,000                1,000
  Deferred revenue                                8,326                7,161
----------------------------------------------------------------------------
Total current liabilities                        14,732               13,228
----------------------------------------------------------------------------
                                                                            
Non-current liabilities                                                     
  Term loan                                       2,500                3,500
  Other non-current liabilities                     299                  225
----------------------------------------------------------------------------
Total non-current liabilities                     2,799                3,725
----------------------------------------------------------------------------
Total liabilities                                17,531               16,953
----------------------------------------------------------------------------
                                                                            
Equity                                                                      
                                                                            
  Share capital                                   2,153                1,748
  Contributed surplus                             9,577                9,588
  Retained earnings                               4,864                3,930
----------------------------------------------------------------------------
Total equity attributable to the                                            
 owners of the Company                           16,594               15,266
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Total liabilities and equity      $              34,125 $             32,219
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
TECSYS Inc.                                                                 
Consolidated Statements of Comprehensive Income                             
Three-month periods and years ended April 30, 2014 and 2013                 
(in thousands of Canadian dollars, except per share data)                   
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                      Three Months  Three Months          Year          Year
                             Ended         Ended         Ended         Ended
                         April 30,     April 30,     April 30,     April 30,
                              2014          2013          2014          2013
                       (unaudited)   (unaudited)                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Revenue:                                                                    
  Software products  $       2,749 $       1,986 $       8,081 $       9,307
  Third-party                                                               
   hardware and                                                             
   software products         1,506         1,421         6,833         5,853
  Services                   7,807         7,376        30,176        27,458
  Reimbursable                                                              
   expenses                    389           334         1,468         1,141
----------------------------------------------------------------------------
Total revenue               12,451        11,117        46,558        43,759
----------------------------------------------------------------------------
                                                                            
Cost of revenue:                                                            
  Products                   1,351         1,046         5,112         4,263
  Services                   5,112         5,232        19,685        20,072
  Reimbursable                                                              
   expenses                    389           334         1,468         1,141
----------------------------------------------------------------------------
Total cost of                                                               
 revenue                     6,852         6,612        26,265        25,476
----------------------------------------------------------------------------
                                                                            
Gross profit                 5,599         4,505        20,293        18,283
                                                                            
Operating expenses:                                                         
  Sales and                                                                 
   marketing                 2,406         2,087         8,755         7,796
  General and                                                               
   administration            1,080           909         4,050         3,881
  Research and                                                              
   development, net                                                         
   of tax credits            1,356         1,253         5,223         5,338
----------------------------------------------------------------------------
Total operating                                                             
 expenses                    4,842         4,249        18,028        17,015
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Profit from                                                                 
 operations                    757           256         2,265         1,268
----------------------------------------------------------------------------
                                                                            
Net finance costs               41             5           244           308
                                                                            
----------------------------------------------------------------------------
Profit before income                                                        
 taxes                         716           251         2,021           960
----------------------------------------------------------------------------
                                                                            
Income taxes                    76            70           226            75
                                                                            
----------------------------------------------------------------------------
Profit attributable                                                         
 to the owners of                                                           
 the Company and                                                            
 comprehensive                                                              
 income for the                                                             
 period              $         640 $         181 $       1,795 $         885
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Basic and diluted                                                           
 earnings per common                                                        
 share               $        0.06 $        0.02 $        0.16 $        0.08
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
TECSYS Inc.                                                                 
Consolidated Statements of Cash Flows                                       
Years ended April 30, 2014 and 2013                                         
(in thousands of Canadian dollars)                                          
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                  Year                 Year 
                                                 Ended                Ended 
                                             April 30,            April 30, 
                                                  2014                 2013 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Cash flows from (used in)                                                   
 operating activities:                                                      
Profit for the year                $             1,795  $               885 
Adjustments for:                                                            
  Depreciation of property and                                              
   equipment                                       728                  907 
  Depreciation of deferred                                                  
   development costs                             1,045                  883 
  Depreciation of other intangible                                          
   assets                                          170                  162 
  Net finance costs                                244                  308 
  Realized foreign exchange gains,                                          
   unrealized foreign exchange                                              
   losses, and other                               122                  109 
  Federal non-refundable research                                           
   and development tax credits                    (300)                (300)
  Income taxes                                     199                   75 
----------------------------------------------------------------------------
  Operating activities excluding                                            
   changes in non-cash working                                              
  capital items related to                                                  
   operations                                    4,003                3,029 
                                                                            
  Accounts receivable                           (1,117)                 248 
  Work in progress                                 767                 (646)
  Other accounts receivable                         53                  (41)
  Tax credits                                    1,945               (2,647)
  Inventory                                        252                  151 
  Prepaid expenses                                 116                   24 
  Accounts payable and accrued                                              
   liabilities                                     516                 (751)
  Deferred revenue                               1,165                  496 
----------------------------------------------------------------------------
  Changes in non-cash working                                               
   capital items related to                                                 
   operations                                    3,697               (3,166)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Net cash from (used in) operating                                           
 activities                                      7,700                 (137)
----------------------------------------------------------------------------
                                                                            
Cash flows (used in) from                                                   
 financing activities:                                                      
  Repayment of loan to related                                              
   party                                           (70)                 (15)
  Term loan                                          -                5,000 
  Repayment of term loan                        (1,000)                (500)
  Issuance of common shares                        130                   59 
  Purchase of common shares for                                             
   cancellation and related fees                   (11)                (462)
  Purchase of share options for                                             
   cancellation                                    (20)                (328)
  Payment of dividends                            (861)                (800)
  Interest paid                                   (162)                (100)
----------------------------------------------------------------------------
Net cash (used in) from financing                                           
 activities                                     (1,994)               2,854 
----------------------------------------------------------------------------
                                                                            
Cash flows (used in) from                                                   
 investing activities:                                                      
  Restricted cash equivalents                       40                   40 
  Interest received                                 50                   46 
  Acquisitions of property and                                              
   equipment                                      (427)                (685)
  Acquisitions of other intangible                                          
   assets                                         (134)                (348)
  Deferred development costs                    (1,816)              (1,686)
  Current and non-current                                                   
   receivables from TECSYS Latin                                            
   America Inc.                                     72                   47 
----------------------------------------------------------------------------
Net cash used in investing                                                  
 activities                                     (2,215)              (2,586)
----------------------------------------------------------------------------
                                                                            
Net increase in cash and cash                                               
 equivalents during the year                     3,491                  131 
                                                                            
Cash and cash equivalents -                                                 
 beginning of year                               5,348                5,217 
                                                                            
----------------------------------------------------------------------------
Cash and cash equivalents - end of                                          
 year                              $             8,839  $             5,348 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
TECSYS Inc.                                                                 
Consolidated Statements of Changes in Equity                                
Years ended April 30, 2014 and 2013                                         
(in thousands of Canadian dollars, except number of shares)                 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                           Share capital  Contributed   Retained      Total 
                      Number      Amount      surplus   earnings            
                                                                            
----------------------------------------------------------------------------
Balance, April                                                              
 30, 2013         11,449,421 $     1,748 $      9,588 $    3,930 $   15,266 
                                                                            
  Profit and                                                                
   comprehensive                                                            
   income for the                                                           
   year                    -           -            -      1,795      1,795 
----------------------------------------------------------------------------
Total                                                                       
 comprehensive                                                              
 income for the                                                             
 year                      -           -            -      1,795      1,795 
----------------------------------------------------------------------------
                                                                            
  Normal course                                                             
   issuer bid                                                               
   fees for                                                                 
   repurchase of                                                            
   common shares           -           -          (11)         -        (11)
  Share options                                                             
   exercised          75,000         130            -          -        130 
  Fair value                                                                
   associated                                                               
   with options                                                             
   exercised               -         275            -          -        275 
  Dividends to                                                              
   equity owners           -           -            -       (861)      (861)
----------------------------------------------------------------------------
Total                                                                       
 transactions                                                               
 with owners of                                                             
 the Company          75,000         405          (11)      (861)      (467)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Balance, April                                                              
 30, 2014         11,524,421 $     2,153 $      9,577 $    4,864 $   16,594 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Balance, April                                                              
 30, 2012         11,603,271 $     1,688 $     10,023 $    3,845 $   15,556 
                                                                            
  Profit and                                                                
   comprehensive                                                            
   income for the                                                           
   year                    -           -            -        885        885 
----------------------------------------------------------------------------
Total                                                                       
 comprehensive                                                              
 income for the                                                             
 year                      -           -            -        885        885 
----------------------------------------------------------------------------
                                                                            
  Repurchase of                                                             
   common shares    (187,300)        (27)        (435)         -       (462)
  Share options                                                             
   exercised          33,450          59            -          -         59 
  Fair value                                                                
   associated                                                               
   with options                                                             
   exercised               -          28            -          -         28 
  Dividends to                                                              
   equity owners           -           -            -       (800)      (800)
----------------------------------------------------------------------------
Total                                                                       
 transactions                                                               
 with owners of                                                             
 the Company        (153,850)         60         (435)      (800)    (1,175)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Balance, April                                                              
 30, 2013         11,449,421 $     1,748 $      9,588 $    3,930 $   15,266 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            

Contacts:
Solutions and general info: [email protected]
Investor relations: [email protected];
416-815-0700 ext. 228
Media relations: [email protected]

TECSYS Inc.
(514) 866-0001 or (800) 922-8649

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