TECSYS sees Q2 FY2018 profits skyrocket

The supply chain management software company saw profits of $1.1 million on revenues of $14.2 million for the company’s second quarter of FY2018, ending Oct. 31, 2017, both substantial increases from the same quarter last year.    Supply chain management software company TECSYS Inc. reported profits of $1.4 million Canadian (U.S. $1.1 million) on revenues of C$18.1 million for the second quarter of the company’s fiscal year 2018, ending Oct. 31, 2017.
   Profits for the second quarter of FY2017 equaled $206,000, or $0.02 per share, meaning the latest results represent in a dramatic increase of 579 percent from FY2017 to FY2018.
   “In the second quarter of fiscal 2018, solid bookings and revenue growth combined with flat to declining expenses led to a surge in profitability.” said Peter Brereton, president and CEO of TECSYS Inc. “The quarter was also a validation of our strategy to deploy one common technology platform that is robust and versatile into two diverse sectors where each has a different sales cycle and is affected differently by external events. In the quarter, our complex distribution business achieved solid growth in terms of both new contract and base account sales and added accounts in floor finishing products, heavy equipment and MRO.”
   The company saw its cloud, maintenance and subscription revenue increase 4 percent year-over-year to C$6.4 million in the second quarter, while total contract value bookings totaled C$11.5 million compared to C$10.9 million the last year. Operating expenses dropped to C$7.8 million compared to C$8 million as well.
   For the first half of the company’s FY18, total revenue increased 6 percent to C$34.6 million, up from the C$32.4 million recorded in the first half of FY17. Total contract value bookings totaled C$21.3 million, compared to $16.9 million the year prior. Cloud, maintenance and subscription revenue increased to $13.5 million, 5 percent higher than $12.8 million in 2017. Operating expenses were flat year-over-year at $15.5 million, compared to $15.3 million the year prior, said TECSYS.
   The company has declared a dividend of $0.05 per share to be paid on Jan. 11, 2018 to shareholders of record at the close of business on Dec. 21, 2017.