Sylogist Builds Strong Momentum with Fiscal 2009 Results

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CALGARY , Jan. 18 /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 audited financial results for the fiscal year ended September 30, 2009 .

In fiscal 2009:

    
    -   Revenues increased 34% to $9.2 million compared to last year.

    -   Gross profit margins improved to 55% up from 39% in fiscal 2008.

    -   Net after tax earnings improved to $1.5 million or $0.09 per share.

    -   Cash flow from operations was $1.9 million or $0.11 per share.

    -   Cash and cash equivalents as at September 30, 2009 totalled
        $5.1 million or $0.30 per share.

    -   Working capital (net of deferred revenue) was $6.6 million or
        $0.39 per share.

    -   Tax pools at the end of fiscal 2009 stood at over $15 million.
    

In the second half of fiscal 2009:

    
    -   Revenues increased 43% to $5.1 million from $3.6 million compared to
        the last 6 months of the previous year.

    -   Gross profit margins improved to 58% up from 42% in the comparable
        6 months of fiscal 2008.

    -   Net after tax earnings improved to $1.3 million or $0.07 per share.

    -   Cash flow from operations was $1.2 million or $0.07 per share.
    

In the fourth quarter of fiscal 2009:

    
    -   Revenues increased 47% to $2.5 million from $1.7 million compared to
        the same period last year.

    -   Gross profit margins improved to 62% up from 43% in fourth quarter of
        fiscal 2008.

    -   Net after tax earnings improved to $0.7 million or $0.04 per share.

    -   Cash flow from operations was $0.7 million or $0.04 per share.
    

"Fiscal 2009 demonstrated improved performance in virtually all areas of the business. The profitable growth trend established in the first quarter of 2009 continued to gain momentum throughout the year. Revenue, margins, cash flow and profit were all significantly better than prior year results. We are pleased with our progress and expect continued improvement." stated Jim Wilson , Chairman, President and CEO.

About Sylogist

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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

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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 forwardlooking 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 -

For further information: Jim Wilson, President and CEO, Sylogist Ltd., [phone]