MONTREAL, Que. -- Supply chain management software company TECSYS saw profits take a dip in the third quarter of fiscal year 2010, ended Jan. 31.
Revenue was $8.8M in Q3, 2010 compared to $9.6M in Q3, 2009, which officials blamed on the weakening of the US Dollar.
Earnings from operations in the third quarter were more than halved at $142K, compared to $329K in Q3, 2009.
“With more than 50% of our revenue generated in the United States, Q3 was significantly impacted by the weaker US Dollar and by the slower than usual decision making. Prospects and clients are taking extra time in this tight economy to finalize their decisions, but our pipeline is significantly more active than it has been since 2008,” said Peter Brereton, president and CEO of TECSYS.
However, Brereton noted: “The success of our vertical strategy continues to benefit the business with YTD proprietary product sales being up 11% and demand for customization services and third party products being down resulting in higher gross margins and a more scalable business.
“Our client base continued to invest in our solutions and services, culminating in a number of new agreements and our services’ organization completed fifteen go-lives during the quarter.”