MONTREAL, QUEBEC--(Marketwire - July 8, 2010) - July 8, 2010 - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the fourth quarter and 2010 fiscal year ended April 30th, 2010. The results of the 2010 fiscal year are audited. All dollar amounts are expressed in Canadian currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP).

Highlights of the Fourth Quarter include:

• Revenue was $8.8M in Q4 of fiscal 2010 compared to $10.4M in Q4 of fiscal 2009.
• Earnings from operations in Q4, 2010 were $851K compared to $815K for the same quarter of last year.
• EBITDA increased 30% to $1,279K in Q4, 2010 compared to $982K for Q4 of last year.
• Net earnings for Q4, 2010 were $1,266K or basic net earnings of $0.10 per share compared to $572K or basic net earnings of $0.04 per share in Q4, 2009. Net earnings for Q4, 2010 were achieved after accounting for net interest expense of $65K, foreign exchange gain of $10K, a share of net gain and amortization of intangible assets of $17K from a company in which TECSYS has an equity interest, and an income tax recovery of $453K.
• During the quarter non-refundable tax credits of $1.4M and non-recurring expenses of $539K were booked, positively impacting earnings by a total of $889K.
• Annualized return-on-equity was 30.6% in Q4 of 2010 compared to 14.5% in Q4 of last fiscal year.
• At the end of Q4, 2010, annualized recurring revenue was $13.1M, or 36% of 2010 fiscal year revenue. Recurring revenue is principally made-up of annual software maintenance contracts.
• At the end of the fourth quarter, 2010, backlog was $18.3M compared to $17.8M at the end of Q3, 2010.
• During the quarter, the Company generated $1,409K cash from operations compared to $930K for the corresponding quarter of fiscal 2009.
• Cash and cash equivalents, as well as short-term and other investments at the end of Q4, 2010 amounted to $8.1M compared to $7.8M at the end of Q4, 2009, with no long-term debt.

Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "While services and hardware revenue continued to lag, due to lower bookings in prior quarters, Q4 was an excellent quarter for new bookings. After a challenging year, Q4 saw the signing of nine new customers in our core verticals and an improved sales pipeline, signalling the start of the recovery in our customers' economic situations. The full year numbers highlight the continuing shift in our business model toward higher proprietary license sales as a percentage of our business. During a tough year, we were able to grow our license sales by 9% and add 23 new clients. We continued to further penetrate our key verticals, with particularly substantial gains in healthcare. We increased our R&D investment in our new platform, while controlling costs and protecting the bottom line. We believe that we are in an excellent position as we exit the recession to take advantage of the next cycle of growth."

During the quarter, the Company won the business of nine new customers, including:

• A pharmaceutical products distributor in Missouri
• A hospital supply network in Indiana
• A heavy equipment dealer in Louisville, Kentucky
• An auto parts distributor in Quebec
• An auto parts distribution network in Canada for a large Japanese auto manufacturer
• A supplier of corporate supplies & services in Ontario
• Two industrial distributors in Ontario
• A welding and supplies distributor in Florida

Furthermore, TECSYS also signed a substantial number of business contracts with existing customers and completed the go-live of sixteen projects for customers across all of the Company's business units.

Highlights of the 2010 Fiscal Year include:

• Revenue for fiscal 2010 was $36.8M compared to $41M for last fiscal year.
• Earnings from operations for the year were $2,106K compared to $2,181K for the same period last year.
• EBITDA increased to $3,312K in 2010 compared to $3,138K in fiscal 2009.
• Net earnings for the year increased by 37.5% to $2,182K or basic net earnings of $0.18 per share, $0.17 per share on a fully diluted basis, compared to $1,587K or basic and diluted net earnings of $0.12 per share for 2009. Net earnings for fiscal 2010 were achieved after accounting for net interest expense of $69K, foreign exchange losses of $211K, a share of net loss and amortization of intangible assets of $79K from a company in which TECSYS has an equity interest, and an income tax recovery of $435K.
• In fiscal 2010, non-refundable tax credits of $1.4M and non-recurring expenses of $539K were booked, positively impacting earnings by a total of $889K.
• Return-on-equity was equal to 13.3% in 2010 compared to 10.2% for fiscal 2009.

TECSYS' Q4 FY2010 Earnings Conference Call:

Date:	July 8, 2010
Time:	5:00 pm
Phone number:	800-897-6274 or 416-981-9035

The call can be replayed by calling 800-558-5253 (access code: 21475368 ) or 416-626-4100 (access code: 21475368 ).

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 600 mid-size and Fortune 1000 corporations in healthcare, third-party logistics, and general wholesale high-volume distribution industries. 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, 2009. 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 © TECSYS Inc. 2010. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.

TECSYS Inc.
Consolidated Balance Sheets
Prepared in Accordance with Canadian Generally Accepted Accounting Principles
(in thousands of Canadian dollars)
	April 30,	April 30,
	2010	2009
Assets
Current assets
Cash and cash equivalents	7,256	7,510
Short-term and other investments	850	325
Accounts receivable	7,346	9,307
Work in progress	66	303
Other accounts receivable	425	198
Tax credits receivable	1,914	1,536
Inventory	171	219
Prepaid expenses	879	668
Future tax assets	142	-
	19,049	20,066
Restricted cash equivalents and other investments	200	739
Asset-backed commercial paper	3,514	3,535
Long-term receivables	48	77
Investment tax credits	930	-
Long-term investment	211	290
Property and equipment	2,472	1,481
Intangible assets	623	930
Deferred development costs	1,991	1,519
Future tax assets	453	-
Goodwill	2,804	2,829
	32,295	31,466
Liabilities
Current liabilities
Bank advances	3,951	4,000
Accounts payable and accrued liabilities	5,305	5,154
Current portion of long-term debt	249	133
Deferred revenue	5,827	6,249
	15,332	15,536
Long-term debt	-	100
	15,332	15,636
Shareholders' equity
Capital stock	1,386	1,420
Contributed surplus	11,931	12,328
Retained earnings	3,646	2,082
	16,963	15,830
	32,295	31,466

TECSYS Inc.
Consolidated Statements of Earnings and Comprehensive Earnings
Prepared in Accordance with Canadian Generally Accepted Accounting Principles
(in thousands of Canadian dollars, except share and per share data)
		Three Months Ended		Three Months Ended		Year Ended		Year Ended
		April 30,		April 30,		April 30,		April 30,
		2010		2009		2010		2009
		(unaudited)		(unaudited)
Revenue
Products		3,467		3,647		13,333		15,749
Services		5,197		6,473		22,437		24,137
Reimbursable expenses		183		300		1,002		1,131
		8,847		10,420		36,772		41,017
Cost of revenue
Products		1,050		1,101		4,585		6,992
Services		3,637		3,947		14,418		15,169
Reimbursable expenses		183		300		1,002		1,131
		4,870		5,348		20,005		23,292
Gross margin		3,977		5,072		16,767		17,725
Operating expenses
Sales and marketing		1,635		1,697		5,902		6,361
General and administration		834		1,122		3,578		3,607
Gross research and development		1,719		1,524		6,333		5,548
Research and development tax credits		(1,403	)	(342	)	(2,012	)	(760	)
Deferred development costs		(255	)	(167	)	(876	)	(810	)
Stock-based compensation		57		31		149		125
Amortization of property and equipment		149		147		550		545
Loss on disposal of property and equipment		153		-		153		-
Amortization of intangible assets		105		167		480		704
Amortization of deferred development costs		132		78		404		224
		3,126		4,257		14,661		15,544
Earnings from operations		851		815		2,106		2,181
Interest income		23		5		37		53
Interest expense		(88	)	(8	)	(106	)	(69	)
Foreign exchange gains (losses)		10		(117	)	(211	)	(280	)
Changes in fair value of asset-backed commercial paper		-		(115	)	-		(238	)
Share of net profit (loss) and amortization of intangible assets of a company subject to significant influence		17		(8	)	(79	)	(60	)
Earnings before income taxes		813		572		1,747		1,587
Income taxes recovery		(453	)	-		(435	)	-
Net earnings and comprehensive earnings for the period		1,266		572		2,182		1,587
Weighted average number of common shares outstanding
	- basic	12,261,372		12,590,733		12,362,504		12,782,738
	- diluted	12,485,254		12,591,146		12,550,420		12,785,157
Basic net earnings per common share		$ 0.10		$ 0.04		$ 0.18		$ 0.12
Diluted net earnings per common share		$ 0.10		$ 0.04		$ 0.17		$ 0.12

TECSYS Inc.
Consolidated Statements of Cash Flows
Prepared in Accordance with Canadian Generally Accepted Accounting Principles
(in thousands of Canadian dollars)
		Three Months Ended		Three Months Ended		Year Ended		Year Ended
		April 30,		April 30,		April 30,		April 30,
		2010		2009		2010		2009
		(unaudited)		(unaudited)
Cash flows from
Operating activities
Net earnings for the period		1,266		572		2,182		1,587
Adjustments for
	Amortization of property and equipment	149		147		550		545
	Amortization of intangible assets	105		167		480		704
	Amortization of deferred development costs	132		78		404		224
	Stock-based compensation	57		31		149		125
	Loss on disposal of property and equipment	153		-		153		-
	Changes in fair value of asset-backed commercial paper	-		115		-		238
	Unrealized foreign exchange gains	(60	)	(883	)	(43	)	(183	)
	Deferred development costs	(255	)	(167	)	(876	)	(810	)
	Share of net (profit) loss and amortization of intangible assets of a company subject to significant influence	(17	)	8		79		60
	Federal non-refundable research and development tax credits	(1,428	)	-		(1,428	)	-
	Income taxes	(452	)	-		(452	)	-
		(350	)	68		1,198		2,490
Changes in non-cash working capital items related to operations
	Decrease (increase) in accounts receivable	699		524		1,961		(74	)
	Decrease in work in progress	34		159		237		140
	(Increase) decrease in other accounts receivable	(274	)	77		(271	)	137
	Decrease (increase) in tax credits receivable	831		(479	)	(23	)	(257	)
	Decrease (increase) in inventory	36		179		48		(3	)
	(Increase) decrease in prepaid expenses	(76	)	71		(211	)	179
	Decrease in long-term receivables	-		-		-		58
	Increase (decrease) in accounts payable and accrued liabilities	786		42		(249	)	(290	)
	(Decrease) increase in deferred revenue	(277	)	289		(422	)	1,419
		1,409		930		2,268		3,799
Financing activities
	Repayment of bank advances	(18	)	-		(49	)	(3	)
	Purchase price adjustments on acquisition applied against long-term debt	19		-		36		(174	)
	Repayment of long-term debt	(20	)	-		(20	)	-
	Issuance of common shares	-		-		-		20
	Purchase of common shares for cancellation	(191	)	(187	)	(580	)	(667	)
	Payment of dividends	(308	)	(253	)	(618	)	(508	)
		(518	)	(440	)	(1,231	)	(1,332	)
Investing activities
	Decrease (increase) in short-term and other investments and restricted cash equivalents and other investments	215		(365	)	14		(392	)
	Interest and principal received on asset-backed commercial paper	1		-		125		167
	Acquisitions of property and equipment	(1,002	)	(99	)	(1,313	)	(321	)
	Proceeds on disposal of property and equipment	20		-		20		8
	Acquisitions of intangible assets	(132	)	(26	)	(173	)	(161	)
	Proceeds on disposal of intangible assets	-		-		-		7
	Decrease in goodwill related to the Streamline acquisition	25		-		25		-
	Decrease in long-term receivables including the current portion from a related party	14		5		11		42
		(859	)	(485	)	(1,291	)	(650	)
Variation in cash and cash equivalents		32		5		(254	)	1,817
Cash and cash equivalents - beginning of period		7,224		7,505		7,510		5,693
Cash and cash equivalents - end of period		7,256		7,510		7,256		7,510

TECSYS Inc.
Consolidated Statements of Shareholders' Equity
Prepared in Accordance with Canadian Generally Accepted Accounting Principles
(in thousands of Canadian dollars, except number of shares)
	Capital stock				Contributed		Retained		Total
	Number		Amount		surplus		earnings
Balance, April 30, 2009	12,525,884		1,420		12,328		2,082		15,830
Repurchase of common shares	(300,859	)	(34	)	(546	)	-		(580	)
Stock options exercised	281		-		-		-		-
Stock-based compensation	-		-		149		-		149
Net earnings for the year	-		-		-		2,182		2,182
Dividends	-		-		-		(618	)	(618	)
Balance, April 30, 2010	12,225,306		1,386		11,931		3,646		16,963
	Capital stock				Contributed		Retained		Total
	Number		Amount		surplus		earnings
Balance, April 30, 2008	13,003,684		1,444		12,826		1,003		15,273
Repurchase of common shares	(490,300	)	(54	)	(613	)	-		(667	)
Stock options exercised	12,500		20		-		-		20
Fair value associated with options exercised	-		10		(10	)	-		-
Stock-based compensation	-		-		125		-		125
Net earnings for the year	-		-		-		1,587		1,587
Dividends	-		-		-		(508	)	(508	)
Balance, April 30, 2009	12,525,884		1,420		12,328		2,082		15,830