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EDMONTON and CALGARY, Feb. 27 /CNW/ - Sylogist Ltd. (TSX:SYZ), a leading
provider of enterprise information management solutions to municipal,
education and enterprise customers, is pleased to release its unaudited
financial results for the first quarter ended December 31, 2007.
Financial Highlights for First Quarter
- Software License and maintenance revenues, excluding SAP related
revenues, increased 55% to $848 thousand from $547 thousand a year
earlier reflecting revenue growth in Bellamy Software and the
acquisition of MasterWorks Software.
- Total Software License and maintenance revenues accounted for 51% of
total revenues compared to 38% from the year prior.
- Spending on General & Admin and Sales & Marketing reduced by 24% to
$682 thousand from $894 thousand in the same period last year
reflecting implementation of our cost reduction plans.
- Investment in Product Development increased to $179 thousand from
$92 thousand in the year earlier reflecting increased spending on new
- Net loss reduced to $384 thousand from the $447 thousand loss in
first quarter 2007 and significant improvement over the loss of
$653 thousand in the preceding quarter.
- First quarter revenue of $1.7 million declined by $0.7 million over
the prior fiscal year due mainly to expiry of SAP re-seller contract
and no revenues associated with the Munishare project.
- Cash flow from operations net of Product Development investment was
neutral in the quarter.
"The growth of software license and maintenance revenue in the quarter
demonstrates the transformation of Sylogist into an intellectual property
based company principally serving the public sector market. Management
continues its focus on product investments, expanding our customer base and
leveraging the Bellamy Software brand, while further improving spending
efficiencies," stated Werner Biegler, President and CEO.
New Product Development
During the first quarter, Bellamy Software continued with the development
of a meeting management application intended for the public sector, including
both municipalities and school districts, to effectively manage board level
meetings. This application, developed in close partnership with lead
customers, is currently in beta and is targeted for launch in April. This
application will be available to customers under a traditional software
license model as well as a hosted Software as a Service (SaaS) application.
In the quarter, Bellamy Software also initiated the development of an
application to help school districts centralize and standardize scheduling and
assessments for their ESL (English as a Second Language) students. This ESL
application will provide trend/statistical reporting to assist key decision
makers in ensuring all ESL related funding is captured. This application,
targeted for launch in May, will be made available to customers as a hosted
Software as a Service (SaaS) application.
Lastly, the company commenced upgrading its mobile development
application called Syloway to the .NET platform. This application will be
available to the company's enterprise customers commencing in March, 2008.
On October 17, 2007, Sylogist announced the acquisitions of MasterWorks
Software Systems and Reflex Government Software which provide finance, human
resources and payroll software to school districts and municipalities
respectively. These acquisitions were integrated within the Bellamy Software
division in the quarter with the staff and operations of MasterWorks Software
re-located to our Calgary office. These acquisitions increased the number of
municipal and school district customers served by Bellamy Software to 160 and
extended the reach of Bellamy Software outside of Alberta into Western Canada.
New Director Appointment
Sylogist is also pleased to announce the appointment of C. Fraser Elliott
to the board of directors, effective immediately, subject to all necessary
regulatory approvals being received. Mr. Elliott, an entrepreneurial
businessman based in Toronto, is a director and officer of CFE Financial Inc.,
a private investment banking company, and Tangerine Payment Solutions Corp., a
venture issuer marketing electronic financial payment solutions to retail
businesses across Canada. Mr. Elliott sits on the boards of charities and
foundations as his time permits. "We are very pleased to add Fraser's valuable
technology and public markets experience to our board as we move the Company
rapidly forward," stated Jim Wilson, Executive Chairman.
Sylogist provides leading enterprise information management and
collaboration software applications to municipal, education and private sector
customers. We provide an integrated suite of business applications to
municipalities that serve their needs for revenue, finance and operations
management capabilities. Our education applications provide financial, student
information and collaborative web-based systems for the K-12 market. Our
industry leading collaborative web solutions enhance teacher, parent and
student on-line collaboration driving improved student achievement.
Full financial statements together with Management's Discussion and
Analysis are available on SEDAR or at http://www.sylogist.com.
The Company's stock is traded on the TSX Venture Exchange under the
symbol SYZ. Information about Sylogist can be found at
- The TSX-Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release -
For further information:
For further information: Werner Biegler, President and CEO, Sylogist
Ltd., (780) 489-5756