Page 1

Enghouse Systems Software engineered for results Enghouse Releases Fourth Quarter and Year End Results Markham , Ontario – December 16 , 2021 – Enghouse Systems Limited ( TSX : ENGH ) today announced its fourth quarter ( unaudited ) and year - end financial results for period ended October 31 , 2021. All the financial information is in Canadian dollars unless otherwise indicated . ● NEWS Financial and operational highlights for the three and twelve months ended October 31 , 2021 compared to the three and twelve months ended October 31 , 2020 are as follows : ● Revenue achieved was $ 113.1 and $ 467.2 million , respectively , compared to revenue of $ 120.9 and $ 503.8 million ; Results from operating activities was $ 39.1 and $ 155.2 million , respectively , compared to $ 42.7 and $ 162.0 million ; Net income was $ 30.2 and $ 92.8 million , respectively , compared to $ 29.4 and $ 98.6 million ; Adjusted EBITDA was $ 42.1 and $ 168.5 million , respectively , compared to $ 46.6 and $ 176.8 million while Adjusted EBITDA margins increased from 35.1 % to 36.1 % for the year . Cash flows from operating activities excluding changes in working capital was $ 42.4 and $ 167.8 million , respectively compared to $ 48.0 and $ 178.5 million . Fiscal 2021 was another year of positive income and operating cash flows , improved Adjusted EBITDA margins and record distributions to shareholders . Although record revenue was not achieved this year , we again demonstrated the benefit of maintaining our financial discipline during times of significant market fluctuations . For the year , Enghouse achieved adjusted EBITDA margins of 36.1 % and cash flows from operations , excluding changes in working capital , of $ 167.8 million . Revenue for the quarter was $ 113.1 million , compared to revenue of $ 120.9 million in the same period in the prior year . The decrease reflects exceptional revenue in the comparative period as a result of COVID - 19 related demand in addition to unfavourable foreign exchange . Similar to the second and third quarters of 2021 , the comparatively higher revenue last year was driven primarily by the previous year's significant increase in our Vidyo business that has returned to levels more consistent with pre - COVID volumes . Revenue for the quarter was negatively impacted by $ 4.4 million as a result of foreign exchange as the Canadian dollar strengthened against the U.S. dollar and Euro . Enghouse closed the quarter with $ 198.8 million in cash , cash equivalents and short - term investments , compared to $ 251.8 million at October 31 , 2020. The cash balance was achieved after making payments of $ 35.6 million for acquisitions and $ 115.7 million for dividends this year , inclusive of $ 83.2 million of special dividends . Changes in the macroeconomic environment , caused by COVID or other factors , continue to impact our business . We closed three acquisitions during the year that met our return - on - investment criteria . However , acquisitions in the technology marketplace continue to be priced at prohibitively higher valuations that do not support our return - on - investment objective . Going forward , we continue to seek earnings - accretive acquisitions to grow our revenue and further expand both our product suite and geographic reach , while maintaining our commitment to profitable growth in accordance with our disciplined business model . We continue to operate our business consistent with our value - for - money philosophy that we believe provides shareholder value in the long - term . Quarterly dividends : Today , the Board of Directors approved the Company's eligible quarterly dividend of $ 0.16 per common share payable on February 28 , 2022 to shareholders of record at the close of business on February 14 , 2022 .