May 09, 2008 17:00 ET

Prosys Comments Third Quarter Results

MONTREAL, QUEBEC, CANADA--(Marketwire - May 9, 2008) - Prosys-Tech Corporation ("Prosys" or the "Corporation")(TSX VENTURE:POZ), announces that, during the course of the third quarter, the sales of the Corporation were $9 million compared with $18 million in 2007, a decrease of $9 million. This decrease in sales is mainly due to a reduction in sales to various governmental departments.

Following this unexpected seasonal decrease, Prosys' management implemented an internal restructuring and cost cutting process. To that end, the Corporation proceeded with cutting approximately thirty jobs across Canada. These cuts will enable Prosys to save approximately $1,500,000 annually.

Furthermore, pursuant to what was announced on April 7, 2008, Prosys still intends, subject to regulatory approval to issue 8,333,333 common shares at a price of $0.24 per share in order to convert $2,000,000 of its $3,000,000 subordinated loan with the Business Development Bank of Canada into common shares of Prosys. This conversion will enable Prosys to save approximately $450,000 per year in interest fees.

Mr. Georges Hebert, President and Chief Executive Officer stated: "We have just finished a difficult quarter with lower government sales. However, the job cuts and the conversion of the subordinated loan with the BDC will enable the Corporation to be considerably closer to the break-even point and will ensure the Corporation's future."

About Prosys

Prosys is a computer manufacturer and distributor of information technology products having offices in Montreal, Quebec, Ottawa, St-John's and Vancouver. Through its subsidiary CDMS, Prosys also offers a wide range of products, including 24/7 multilingual technical service desk, network operations and monitoring, managed services, IT consulting and a host of value add hardware solutions. The vast customer base of Prosys is divided among various market niches. Prosys' main clients are the Governments of Canada and Quebec, crown corporations, universities, school boards and CEGEPs throughout the province of Quebec. The investment in Peak is in the scope of the Corporation's steps to diversify the global offer of services to its current customers and to improve Prosys' positioning for the development of the SMB market.

This news release may contain forward-looking statements that could reflect the Corporation's objectives, estimates, expectations and the impact on its financial performance. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from either party's projections or expectations.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Prosys Tech Corporation
    Mr. Georges Hebert
    President and Chief Executive Officer
    514-255-3454, extension 270