Tecsys Q3 profits contract to $62,000 from $97,000 as revenues slips to $8.8M
Software company Tecsys Inc. (TSX:TCS) blamed a weaker U.S. dollar and slower sales for lower profits and revenues in its fiscal third quarter.
The company said Thursday it earned $62,000 or less than a penny a share in the three months ended Jan. 31. In the year ago period, net income was $97,000 or a penny a share.
Revenues for the Montreal-based company totalled $8.8 million versus $9.6 million.
The eight per cent slide was attributable to reduced sales in the U.S., where the company generates 50 per cent of its revenues.
Peter Brereton, Tecsys' president and chief executive, said in a news release that clients have been delaying spending amid the economic slowdown.
"(The) third quarter was significantly impacted by the weaker U.S. dollar and by the slower than usual decision-making," Brereton stated in a release.
"Prospects and clients are taking extra time in this tight economy to finalize their decisions."
Despite the reluctance cited by Brereton, the company was able to sign agreements with eight new clients in the quarter, most in the health-care and import-to-retail sectors.
Tecsys shares were up three cents at $2.05 at the close of trading Thursday on the Toronto Stock Exchange.