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tecsys TM News Release FOR IMMEDIATE RELEASE Ref . # NRE2021-24 Tecsys Reports Financial Results for the Second Quarter of Fiscal 2022 Eleventh consecutive quarter of record revenue ; SaaS revenue up 28 % year - over - year Montreal , December 1 , 2021— Tecsys Inc. ( TSX : TCS ) , an industry - leading supply chain management SaaS company , today announced its results for the second quarter of fiscal year 2022 , ended October 31 , 2021. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards ( IFRS ) . Second Quarter Highlights : • SaaS revenue increased by 28 % to $ 6.6 million in Q2 2022 , up from $ 5.1 million in Q2 2021 . • Annual Recurring Revenue ( ARR ) at October 31 , 2021 was up 12 % to $ 56.9 million compared to $ 50.9 million at October 31 , 2020 . • • • • During Q2 2022 , SaaS subscription bookings ' ( measured on an ARRİ basis ) were $ 4.0 million , up 50 % compared to $ 2.7 million in the second quarter of fiscal 2021 . Professional services revenue was up 11 % to $ 13.1 million in Q2 2022 compared to $ 11.8 million in Q2 2021 . Total revenue was a record $ 34.3 million , 12 % higher than $ 30.7 million reported for Q2 2021 . Gross margin was 45 % compared to 52 % in the prior year quarter , negatively impacted by a weaker US dollar , investment in our key growth initiatives and revenue mix . Total gross profit decreased to $ 15.5 million , down 3 % from $ 16.0 million in Q2 2021 . Operating expenses increased to $ 13.9 million , higher by $ 1.3 million or 11 % compared to $ 12.6 million in Q2 fiscal 2021 with continuing investment in sales and marketing as well as research and development . • Profit from operations in Q2 2022 was $ 1.6 million , down from $ 3.5 million in Q2 2021 . • Net profit was $ 0.7 million or $ 0.05 per share on a fully diluted basis in Q2 2022 compared to a net profit of $ 2.1 million or $ 0.14 per share on a fully diluted basis for the same period in fiscal 2021 . Tecsys Inc. ⚫ 1 Place Alexis Nihon Suite 800 Montreal Quebec H3Z 3B8 Canada tecsys.com