TECSYS Announces Annual Results-Revenue and Profit Increases

MONTREAL, QUEBEC, Jul 07 (MARKET WIRE) --
TECSYS Inc. (TSX: TCS), an industry-leading supply chain management
software company announced today its results for the fourth quarter and
full 2009 fiscal year ended April 30th, 2009. The results of the full
2009 fiscal year are audited. All dollar amounts are expressed in
Canadian currency and reported in accordance with Canadian Generally
Accepted Accounting Principles (GAAP).

Highlights of the Fourth Quarter include:

- Revenue was $10.4M in Q4 of fiscal 2009 compared to $10.6M in Q4 of
fiscal 2008.

- Earnings from operations in Q4, 2009 were $815K compared to an adjusted
$895K for the same quarter of last fiscal year which included a
non-refundable tax credit of $641K for a total of $1,536K.

- EBITDA for Q4, 2009 was $982K compared to an adjusted $445K for Q4 of
last fiscal year which included a non-refundable tax credit of $641K for
a total of $1,086K.

- Net earnings for Q4, 2009 were $572K or $0.04 per share compared to
$49K or $0.00 per share in Q4, 2008. Net earnings were achieved after
accounting for net interest expense of $3K, foreign exchange losses of
$117K, a further write-down on the Company's Asset-Backed Commercial
Paper of $115K, and a share of net loss and amortization of intangible
assets of $8K from a company in which TECSYS has an equity interest.

- Gross margin percentage increased to 49% in Q4, 2009 compared to 47% in
Q4 of last fiscal year.

- Annualized return-on-equity was equal to 14.5% in Q4 of fiscal 2009
compared to 1.3% in Q4 of last fiscal year.

- At the end of Q4, 2009 annualized recurring revenue stood at $13.4M the
same as at the end of Q3, 2009. Recurring revenue is principally made-up
of annual software maintenance contracts.

- At the end of the fourth quarter, backlog stood at $20.4M compared to
$20.6M at the end of Q3, 2009 and up from $19.2M at the end of Q4 of last
fiscal year.

- During the quarter, the Company generated $930K cash from operations
compared to $761K for the corresponding quarter of fiscal 2008.

- At the end of Q4, 2009 cash and cash equivalents, as well as short-term
and other investments amounted to $7.8M compared to $5.7M at the end of
Q4, 2008 with no significant long-term debt.

Peter Brereton, President and CEO of TECSYS Inc. commented on the
results:"It was a strong quarter and a strong year for TECSYS on all
accounts, particularly when considering the economic climate. With our
vertical market focus, we were able to post improved net earnings and
increase cash from operations, further solidifying our balance sheet. We
also strengthened our product line with an exciting new release and
continued to improve our position in our vertical market sectors."

During the Quarter, the Company signed five new customers, including:

- Two heavy equipment dealers, one in Ohio and the second in Missouri

- A supplier of educational products in Ontario

- An industrial distributor in Ontario

- A 3rd party logistics provider in Wisconsin

Furthermore, TECSYS also signed a substantial number of business
contracts with existing customers and completed the go-live of thirty
projects for customers in Canada, the U.S. and Europe. Key account
go-lives include: Providence Heath & Services and Orlando Regional Health
Services in the hospital supply network sector, Warren CAT and Riggs CAT
in the heavy equipment dealers sector, Canon USA, SCP Portugal and
Robinson Home Products among others in the high-volume distribution
sector.

Highlights of the full 2009 Fiscal Year include:

- Revenue for fiscal 2009 increased 4% to $41M from $39.5M in the same
period of last fiscal year.

- Earnings from operations for 2009 were $2,181K compared to an adjusted
$2,855K for the same period in last fiscal year which included a
non-refundable tax credit of $641K for a total of $3,496K.

- EBITDA reached $3,138K in fiscal 2009 compared to an adjusted $2,607K
for fiscal year 2008 which included a non-refundable tax credit of $641K
for a total of $3,248K.

- Net earnings for 2009 were $1,587K or $0.12 per share compared to
$1,263K or $0.09 per share for the same period of the prior fiscal year.
Net earnings were achieved after accounting for net interest expense of
$16K, foreign exchange losses of $280K, a write-down on the Company's
Asset-Backed Commercial Paper of $238K, and a share of net loss and
amortization of intangible assets of $60K from a company in which TECSYS
has an equity interest.

- Annualized return-on-equity was equal to 10.2% in fiscal 2009 compared
to 8.3% in the same period in last fiscal year.

TECSYS' Fourth Quarter, Fiscal 2009 Earnings Conference Call:

Date: July 7, 2009

Time: 4:30 pm

Phone number: 800-633-8757 or 416-620-5690

The call can be replayed by calling 800-558-5253 (access code: 21430661)
or 416-626-4100 (access code: 21430661).

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 500
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,
2008. 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).

TECSYS Inc.
Consolidated Balance Sheets
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles

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(in thousands of Canadian dollars)

April 30, April 30,
2009 2008

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--------------------------------------------------------------------------

Assets

Current assets
Cash and cash equivalents 7,510 5,693
Short-term and other investments 325 -
Accounts receivable 9,307 9,233
Work in progress 303 443
Other accounts receivable 198 204
Tax credits receivable 1,536 1,279
Inventory 219 216
Prepaid expenses 668 847
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20,066 17,915

Restricted cash equivalents and other investments 739 672
Asset-backed commercial paper 3,535 4,045
Long-term receivables 77 165
Long-term investment 290 350
Property and equipment, net 1,481 1,713
Intangible assets, net 930 1,480
Deferred development costs, net 1,519 933
Goodwill 2,829 2,829
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31,466 30,102
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--------------------------------------------------------------------------

Liabilities

Current liabilities
Bank advances 4,000 4,003
Accounts payable and accrued liabilities 5,154 5,589
Current portion of long-term debt 133 207
Deferred revenue 6,249 4,830
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15,536 14,629

Long-term debt 100 200
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15,636 14,829
--------------------------------------------------------------------------

Shareholders' equity

Capital stock 1,420 1,444
Contributed surplus 12,328 12,826

Retained earnings 2,082 1,003
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15,830 15,273
--------------------------------------------------------------------------

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31,466
30,102--------------------------------------------------------------------------
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TECSYS Inc.
Consolidated Statements of Earnings and Comprehensive Earnings
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles

--------------------------------------------------------------------------
(in thousands of Canadian dollars, except share and per share data)

Three Three
Months Months Year Year
Ended Ended Ended Ended
April 30, April 30, April 30, April 30,
2009 2008 2009 2008

(unaudited) (unaudited)
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--------------------------------------------------------------------------

Revenue
Products 3,647 4,597 15,749 17,121
Services 6,473 5,745 24,137 21,348
Reimbursable expenses 300 270 1,131 1,026
--------------------------------------------------------------------------
10,420 10,612 41,017 39,495

Cost of revenue
Products 1,101 1,752 6,992 6,967
Services 3,947 3,618 15,169 13,298
Reimbursable expenses 300 270 1,131 1,026
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5,348 5,640 23,292 21,291
--------------------------------------------------------------------------
Gross margin 5,072 4,972 17,725 18,204
--------------------------------------------------------------------------

Operating expenses
Sales and marketing 1,697 1,666 6,361 6,104
General and
administration 1,122 977 3,607 3,519
Gross research and
development 1,524 1,266 5,548 5,055
Research and development
tax credits (342) (746) (760) (1,070)
Deferred development
costs (167) (107) (810) (313)
Stock-based compensation 31 10 125 41
Amortization of property
and equipment 147 149 545 572
Amortization of
intangible assets 167 184 704 676
Amortization of deferred
development costs 78 37 224 124
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4,257 3,436 15,544 14,708
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Earnings from operations 815 1,536 2,181 3,496

Interest income 5 18 53 148
Interest expense (8) (29) (69) (66)
Foreign exchange losses (117) (36) (280) (521)
Changes in fair value of
asset-backed
commercial paper (115) (723) (238) (1,041)
Share of net loss and
amortization of
intangible assets of a
company subject
to significant influence (8) (76) (60) (112)
--------------------------------------------------------------------------
Earnings before
income taxes 572 690 1,587 1,904
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Income taxes - 641 - 641
--------------------------------------------------------------------------
Net earnings and
comprehensive earnings
for the period 572 49 1,587 1,263
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Weighted average number
of common shares
outstanding
- basic 12,590,733 13,003,056 12,782,738 13,325,209
--------------------------------------------------------------------------
- diluted 12,591,146 13,081,234 12,785,157 13,359,342
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Basic and diluted
net earnings
per common share $0.04 $0.00 $0.12 $0.09
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TECSYS Inc.
Consolidated Statements of Cash Flows
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles

--------------------------------------------------------------------------
(in thousands of Canadian dollars)

Three Three
Months Months Year Year
Ended Ended Ended Ended
April 30, April 30, April 30, April 30,
2009 2008 2009 2008

(unaudited) (unaudited)
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--------------------------------------------------------------------------
Cash flows from

Operating activities
Net earnings
for the period 572 49 1,587 1,263
Adjustments for
Amortization of property
and equipment 147 149 545 572
Amortization of
intangible assets 167 184 704 676
Amortization of deferred
development costs 78 37 224 124
Stock-based compensation 31 10 125 41
Changes in fair value of
asset-backed commercial
paper 115 723 238 1,041
Unrealized foreign
exchange (gains) losses (883) 11 (183) 263
Deferred development
costs (167) (107) (810) (313)
Share of net loss and
amortization of
intangible assets of
a company subject to
significant influence 8 76 60 112
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68 1,132 2,490 3,779
Changes in non-cash working
capital items related to
operations
Decrease (increase) in
accounts receivable 524 (500) (74) (1,775)
Decrease (increase) in
work in progress 159 (25) 140 (143)
Decrease (increase) in
other accounts
receivable 77 (60) 137 -
(Increase) decrease in tax
credits receivable (479) 816 (257) 109
Decrease (increase) in
inventory 179 (33) (3) (49)
Decrease (increase) in
prepaid expenses 71 (205) 179 (275)
(Increase) decrease in
long-term receivables - (58) 58 (58)
Increase (decrease) in
accounts payable and
accrued liabilities 42 (332) (290) 282
Increase in deferred
revenue 289 26 1,419 884
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930 761 3,799 2,754
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Financing activities
Bank advances - 870 (3) 3,799
Purchase price
adjustments on
acquisition applied
against long-term debt - - (174) -
Issuance of common shares - 7 20 11
Purchase of common shares
for cancellation (187) (17) (667) (1,016)
Dividends paid on common
shares (253) (260) (508) (260)
--------------------------------------------------------------------------
(440) 600 (1,332) 2,534
--------------------------------------------------------------------------

Investing activities
(Increase) decrease in
short-term and other
investments and
restricted cash
equivalents and other
investments (365) 4 (392) (2,410)
Interest received on
asset-backed
commercial paper - - 167 -
Acquisitions of property
and equipment (99) (21) (321) (288)
Proceeds on disposal of
property and equipment - - 8 -
Acquisitions of
intangible assets (26) (3) (161) (36)
Proceeds on disposal
of intangible assets - - 7 -
Decrease (increase) in
long-term receivables
including the current
portion from a related
party 5 9 42 (8)
Increase in long-term
investment of a
related party - (60) - (177)
Business combination,
net of cash and cash
equivalents acquired - - -
(1,167)-------------------------------------------------------------------------

(485) (71) (650) (4,086)
--------------------------------------------------------------------------

Variation in cash
and cash equivalents 5 1,290 1,817 1,202
Cash and cash equivalents -
beginning of period 7,505 4,403 5,693 4,491

--------------------------------------------------------------------------
Cash and cash equivalents -
end of period 7,510 5,693 7,510 5,693
--------------------------------------------------------------------------
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TECSYS Inc.
Consolidated Statements of Shareholders' Equity
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles

--------------------------------------------------------------------------
(in thousands of Canadian dollars, except number of shares)

Common shares Contributed Retained
Number Amount surplus earnings Total
--------------------------------------------------------------------------
Balance, April 30,
2008 13,003,684 1,444 12,826 1,003 15,273

Repurchase of
common shares (490,300) (54) (613) - (667)

Stock options
exercised 12,500 20 - - 20

Fair value
associated
with options
exercised - 10 (10) - -

Stock-based
compensation - - 125 - 125

Net earnings
for the year - - - 1,587 1,587

Dividends - - - (508) (508)

--------------------------------------------------------------------------
Balance, April 30,
2009 12,525,884 1,420 12,328 2,082 15,830
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--------------------------------------------------------------------------

Retained
Common shares Contributed earnings
Number Amount surplus (deficit) Total
--------------------------------------------------------------------------
Balance, April 30,
2007 13,678,297 56,133 11,042 (51,941) 15,234

Reduction of
stated capital - (51,941) - 51,941 -

Repurchase of
common shares (682,800) (2,764) 1,748 - (1,016)

Stock options
exercised 8,187 11 - - 11

Fair value
associated
with options
exercised - 5 (5) - -

Stock-based
compensation - - 41 - 41

Net earnings for
the year - - - 1,263 1,263

Dividends - - - (260) (260)

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Balance, April 30,
2008 13,003,684 1,444 12,826 1,003 15,273
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Copyright Copyright TECSYS Inc. 2009. All names, trademarks, products,
and services mentioned are registered or unregistered trademarks of their
respective owners.

Contacts:
TECSYS Inc.
514-866-0001 or 800-922-8649
Solutions and general info: info@tecsys.com
Media relations: media@tecsys.com
Investor relations: investor@tecsys.com

Copyright 2009, Market Wire, All rights reserved.

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