The supply chain management software company reported a 20 percent decline in EBITDA despite 15 percent revenue growth in the first quarter of fiscal year 2016, which ended July 31.
TECSYS Inc. earnings before interest, taxes, debt and amortization (EBITDA) fell 20 percent year-over-year to $0.8 million in the first quarter of fiscal 2016, which ended July 31, 2015, according to the company’s most recent earnings statements.
The supply chain management software company reported profits from operations of $207,000 in Q1 2016, a 56 percent drop from Q1 2015.
Revenues at TECSYS, however, grew 15 percent to $14.9 million compared to the same period last year.
The company said its total contract bookings in the first quarter totaled $6.7 million compared to $9.7 million in the prior year period, while backlog increased 33 percent to $44.8 million.
“Our team continues to make great progress capitalizing on our strong order backlog and sales pipeline, resulting in progressive revenue expansion and gross margin improvement,” President and CEO Peter Brereton said of the results.
“We signed two new IDNs [hospital networks] in the quarter, further evidence of the positive response we’ve seen from our clients to the value proposition our robust platform affords them,” he added. “In response to this continued market momentum, we have significantly increased our investment in sales, marketing, and R&D in order to capitalize on the opportunity we see in this space. We are in an excellent position within our core markets and see a great opportunity to grow our business and continue to deliver solid results.”
Montreal, Quebec-based TECSYS Inc. specializes in supply chain solutions for health systems and hospitals, with over 600 midsize and Fortune 1000 customers in the healthcare, service parts, third-party logistics, and general wholesale high-volume distribution industries.
TECSYS sees profits drop despite increased revenues
