Sylogist Q2 Results: Revenue Grows 30%, EPS Up 6-fold, Dividend Increased

/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. (TSX-V:SYZ), a leading provider of enterprise information management solutions to municipal, education and private sector customers, is pleased to release its unaudited financial results for the second quarter of fiscal 2010 ended March 31, 2010.

In the second quarter of fiscal 2010:

    
    -   Revenues increased 30% to $2.7 million from $2.0 million in the same
        period last year.
    -   Gross profit margins improved to 59%, up from 54% in second quarter
        of fiscal 2009.
    -   Net after tax earnings improved to $972,000 or $0.06 per share, a
        six-fold increase per share over the same period in 2009.
    -   EBITDA was $917,000 ($0.06 per share).
    -   Cash and cash equivalents as at March 31, 2010 totalled $7.1 million
        ($0.43 per share).
    -   Working capital (net of deferred revenue) was $8.9 million or $0.54
        per share.
    -   Combined federal and provincial tax pools at the end of March 2010
        were approximately $14 million.
    -   The Sylogist Board declared a quarterly dividend of 1.65 cents per
        common share, a 10% increase over the previous quarter.
    

In the first 6 months of fiscal 2010:

    
    -   Revenues increased 28% to $5.2 million from $4.1 million in the same
        6 month period a year earlier.
    -   Gross profit margins improved to 61%, up from 49% in the comparable 6
        months last year.
    -   Net after tax earnings improved to $1.9 million or $0.11 per share.
    -   EBITDA was $1.8 million or $0.11 per share.
    

For the trailing 12 month period:

    
    -   Revenues increased 37% to $10.4 million from $7.6 million compared to
        the previous 12 month period.
    -   Gross profit margins improved to 59%, up from 48% in the same 12
        months a year earlier.
    -   Net after tax earnings improved to $3.0 million or $0.18 per share.
    -   EBITDA was $3.1 million or $0.19 per share.
    

"Results of the second quarter of fiscal 2010 were significantly improved over the same quarter last year. With Sylogist's strong balance sheet and operating performance, the Board of Directors declared a quarterly dividend of 1.65 cents per common share (a 10% increase from the previous quarter) payable June 15, 2010 to shareholders of record as at May 31, 2010. The dividend will be paid as a return of capital." stated Jim Wilson, Chairman, President and CEO.

    
    About Sylogist
    --------------
    

Sylogist provides leading financial enterprise information management systems, system connectivity solutions and portal applications 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 forward-looking 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.

- The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release -

SOURCE Sylogist Ltd.

For further information: For further information: Jim Wilson, President and CEO, Sylogist Ltd., (403) 266-4808

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