TECSYS Inc. announces the status of its cash holdings and short-term investments

    MONTREAL, Sept. 4 /CNW Telbec/ - TECSYS Inc. (TSX: TCS), an
industry-leading supply chain management software company provides the
following update on the status of its cash holdings and short-term investments
in light of the current disruption in the credit markets relating to
asset-backed commercial paper (ABCP). All dollar amounts are expressed in
Canadian currency. TECSYS had a total available cash position of approximately
$8.1 million as of August 31, 2007, including $5.1 million invested in six
different non-bank or third-party ABCP trusts, of which $1.4 million is
managed by Coventree Capital Group Inc. Despite liquidity concerns related to
the ABCP products in which TECSYS has invested, TECSYS has a balance of
$3.0 million which it believes is sufficient cash to meet its financial and
operational obligations. TECSYS has received an offer of a credit facility of
$4.8 million from the National Bank of Canada which is currently being
    The remaining $3.0 million of available cash is either held as cash or
invested in highly rated liquid instruments (mainly cash, term deposits and
banker's acceptances) and has no exposure whatsoever to the current ABCP
market disruption.
    All of TECSYS' ABCP investments are in trusts rated R1-high by Dominion
Bond Rating Service (DBRS) -- DBRS' highest credit rating. The ABCP held by
TECSYS are securities that met the criteria of TECSYS' investment policy and
were purchased on the basis of professional advice from National Bank of
Canada. Maturity dates range from August 13, 2007, to September 6, 2007. Of
the $5.1 million invested in ABCP by TECSYS, $ 3.0 million has matured to date
and has not been repaid.
    DBRS has placed several ABCP issuers, "Under review with developing
implications," following the announcement in Stockwatch on August 16, 2007, by
a consortium representing banks and major investors that they had agreed in
principle to a long-term proposal and an interim agreement regarding third
party asset-backed commercial paper. According to the announcement the effect
of the agreement in principle would be, among other things, to convert ABCP
into term floating-rate notes maturing no earlier than the scheduled
termination dates of the underlying assets.

    About TECSYS

    TECSYS is a leading supply chain management software provider that
delivers powerful enterprise distribution, warehouse and transportation
logistics software solutions. The company's customers include about 800
mid-size and Fortune 1000 corporations in healthcare, giftware, office
products, third-party logistics, and general wholesale high-volume
distribution markets. TECSYS' shares are listed on the Toronto Stock Exchange
under the ticker symbol TCS.

    The statements in this news release relating to matters that are not
historical fact are forward looking statements that are based on management's
beliefs and assumptions. Such statements are not guarantees of future
performance and are subject to a number of uncertainties, including but not
limited to future economic conditions, the markets that TECSYS Inc. serves,
the actions of competitors, major new technological trends, and other factors
beyond the control of TECSYS Inc., which could cause actual results to differ
materially from such statements. More information about the risks and
uncertainties associated with TECSYS Inc.'s business can be found in the MD&A
section of the Company's annual report and annual information form for the
fiscal year ended April 30th, 2007. These documents have been filed with the
Canadian securities commissions and are available on our website
(www.tecsys.com) and on SEDAR (www.sedar.com).

    Copyright (c) TECSYS Inc. 2007. All names, trademarks, products, and
services mentioned are registered or unregistered trademarks of their
respective owners.
    %SEDAR: 00010494EF

For further information:

For further information: Mr. Berty Ho-Wo-Cheong, Vice President, Finance
& Administration and Chief Financial Officer, TECSYS Inc., (514) 866-0001,
(800) 922-8649, berty.ho@tecsys.com, www.tecsys.com

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890