Sylogist Q2 Results: Revenue and Earnings Grow, Dividend Increased 25%, IP Advanced.

/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

CALGARY, May 6 /CNW/ - Sylogist Ltd. (TSXV: SYZ), a provider of technology based IP solutions, is pleased to release its unaudited financial results for the second quarter of fiscal 2011 ended March 31, 2011.

In the second quarter of fiscal 2011:

  • Revenues increased 9.8% to $2.5 million from $2.3 million in the first quarter.
  • Gross profit margin was 70%, up from 59% in the same quarter last year.
  • EBITDA was $1.0 million ($0.05 per share) compared to $0.8 million in the previous quarter.
  • Cash and cash equivalents as at March 31, 2011 totalled $16.2 million ($0.80 per share).
  • Working capital (net of deferred revenue) was $17 million or $0.84 per share.
  • Combined tax pools at the end of March 2011 were approximately $12 million.
  • The Sylogist Board declared a quarterly dividend of 2.5 cents per common share, a 25% increase over the previous quarter.
  • Sylogist repurchased 152,100 shares under its normal course issuer's bid in the quarter.
  • $0.5 million (US) was invested in Aviation Capital Enterprises, Inc., a private Alberta company.

In the first 6 months of fiscal 2011:

  • Revenue was $4.8 million.
  • Gross profit margin was 71%.
  • EBITDA was $1.8 million or $0.09 per share.

For the trailing 12 month period:

  • Revenue was $9.3 million.
  • Gross profit margin was 69%.
  • EBITDA was $3.9 million or $0.18 per share.

Subsequent to March 31, 2011:

  • Sylogist repurchased 350,000 shares under its normal course issuer's bid in the month of April.
  • Aviation Capital Enterprises, Inc. in conjunction with its development partner Lockheed Martin, is advancing its intellectual property development having recently filed for Type Certification of a hybrid airship with the Federal Aviation Administration (FAA) in the United States.

"Results of the second quarter of fiscal 2011 improved over the first quarter of fiscal 2011.   With Sylogist's strong balance sheet and operating performance, the Board of Directors declared a quarterly dividend of 2.5 cents per common share (a 25% increase from the previous quarter) payable June 15, 2011 to shareholders of record as at May 31, 2011.  The dividend will be paid as a return of capital." stated Jim Wilson, Chairman, President and CEO.

About Sylogist

Sylogist provides IP technology solutions to municipal, education and private sector customers.

Full financial statements together with Management's Discussion and Analysis are available on SEDAR.

The Company's stock is traded on the TSX Venture Exchange under the symbol SYZ. Information about Sylogist can be found at http://www.sylogist.com.

Forward-looking Statements

This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Sylogist. As a result, we cannot guarantee that any forwardlooking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Sylogist does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.

-Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release-

SOURCE Sylogist Ltd.

For further information:

Jim Wilson, President and CEO
Sylogist Ltd.
(403) 266-4808

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Sylogist Ltd.

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