Page 1

Enghouse Systems Software engineered for results Enghouse Releases First Quarter Results Markham , Ontario - March 11 , 2021 – Enghouse Systems Limited ( TSX : ENGH ) today announced its first quarter ( unaudited ) financial results for the period ended January 31 , 2021. All the fin cial information is in Canadian dollars unless otherwise indicated . ● Key financial and operational highlights for the three months ended January 31 , 2021 ( compared to the same period in 2020 ) are as follows : ● NEWS Revenue grew 7.6 % to $ 119.1 million ; Results from operating activities increased 32.0 % to $ 40.7 million ; Net income increased 27.9 % to $ 20.6 million ; Adjusted EBITDA increased 26.0 % to $ 44.5 million ; Cash flows from operating activities excluding changes in working capital increased 18.6 % to $ 41.7 million , closing the quarter with $ 230.4 million in cash , cash equivalents and short - term investments . In the first quarter of 2021 , hosted revenue increased 17.3 % to $ 19.3 million as a result of ongoing initiatives to transition new and existing customers to cloud - based service agreements , notably in Enghouse's cloud contact - center business . Meanwhile , seasonality that is typically experienced in the first quarter was further exacerbated as a result of COVID - 19 related lock - downs . This delayed some professional services and hardware deployments that require in - person integration and customization . Enghouse continues to realize cost savings from remote work arrangements and reduced expenditure on its physical footprint , as the pandemic persists , with most countries experiencing a second wave . The Company's adjusted EBITDA margins increased from 31.9 % to 37.4 % as Enghouse continues to realize efficiencies related to increased scale after quickly integrating acquisitions and reduced travel costs . On December 30 , 2020 , Enghouse acquired 100 % of the issued and outstanding common shares of Sociedade Altitude Software Sistemas e Serviços S.A. ( " Altitude " ) . Headquartered in Lisbon , Portugal , Altitude provides omni - channel contact center solutions for small and large organizations , with a focus on the business process outsourcing market segment . Its modular software suite supports all media channels and has strong inbound and outbound capabilities for both on premise and hosted contact center activities . The acquisition of Altitude extends our presence to Portugal and further expands our operations in Spain , Brazil and Mexico enabling us to capture additional opportunities within these markets . Efforts to onboard the Altitude team and align their processes with those of Enghouse were almost completed by the end of the first quarter . Dividends : As previously announced on December 17 , 2020 , the Board of Directors approved a special dividend of $ 1.50 per common share , which was paid on February 16 , 2021 to shareholders of record at the close of business on January 15 , 2021 . Today , the Board of Directors approved the Company's eligible quarterly dividend of $ 0.16 per common share , an increase of 18 % over the prior dividend , payable on May 31 , 2021 to shareholders of record at the close of business on May 17 , 2021. This represents the thirteenth consecutive year in which the company increased its dividend by over 10 % . With substantial cash balances , no debt , significant operating cash flow , low interest rates and the ability to access additional capital , as needed , we believe that we will continue to have sufficient funding available for operations and additional acquisitions .