CALGARY, ALBERTA--(Marketwired - Nov. 10, 2016) -
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Sylogist Ltd. (TSX VENTURE:SYZ) ("Sylogist" or "the Company") is pleased to announce the declaration of both special and regular dividends, along with the recently completed amalgamation of its various operating units into one public sector division and the resulting associated financial improvements.
With a successful fiscal 2016 year of revenue and profitability growth concluded September 30, Sylogist's board declared a special dividend of $0.05 per common share, along with its regular quarterly dividend of $0.07 per common share, both to be paid to shareholders of record on November 30, 2016 with payment made on December 14, 2016. Both dividends are treated as "eligible dividends" within the meaning of the Income Tax Act (Canada). Sylogist anticipates releasing its full year, audited financial statements early in calendar 2017.
Effective at the commencement of the 2017 fiscal year, Sylogist completed the amalgamation of its Serenic and Bellamy public sector operating divisions, to conduct business as "Serenic Software" going forward. The combination of the two management teams provides our public sector, NGO and not-for-profit customers with greater depth and breadth of product offerings, professional services and support strength spread over a wider geography. The coming together of these operating divisions was announced by Sylogist at customer forums recently held in Denver, Colorado and Edmonton, Alberta.
"Our previously announced global agreement signed with Microsoft in August was the catalyst for change in our organization and in our operating model. Over the past few months we have made significant adjustments to the organizational structure and managerial responsibilities in our Company. These changes have directly resulted in lowering our future fixed and variable operating costs. Costs impacted, include executive compensation, royalty payments, office rents, professional fees, data hosting expenses, tax allocations and other internal efficiencies anticipated from our new in-house ERP/CRM system. Functional and foundational additions to our software products, achieved through combining the intellectual property assets of the Bellamy and Serenic divisions, are anticipated to improve recurring revenue operating margins moving into fiscal 2017 and 2018. Based on our $35.6 Million trailing twelve month revenue run rate, the annual net positive cash impact of these organizational changes is expected to be approximately $4 Million in fiscal 2017 and $6 Million in fiscal 2018, when the full benefits of the changes are realized. Some of these savings will be reinvested in organic growth initiatives in product development and marketing for fiscal 2017 in order to lay the foundation for 2018 organic revenue performance," commented Jim Wilson, President and CEO of Sylogist.
Sylogist is a technology innovation company which through strategic acquisitions, investments and operations management, provides intellectual property solutions to a wide range of public and private sector customers. It is an industry-leading publisher of mission-critical software products that satisfy the unique and sophisticated functionality requirements of public sector entities, nonprofit organizations, educational institutions, and government agencies. Sylogist delivers highly scalable, multi-language, multi-currency software solutions, which serve the needs of an international clientele.
The Company's stock is traded on the TSX Venture Exchange under the symbol SYZ. Information about Sylogist can be found at http://www.sylogist.com.
Certain statements in this news release may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements typically use words such as expect, believe, estimate, project, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the beliefs and plans and other forward-looking expectations expressed herein will not be achieved or will prove inaccurate. Although Sylogist believes that the expectations reflected in these forward-looking statements are reasonable, it provides no assurance that these expectations will prove to have been correct. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to Sylogist's key organizational changes and investments, its key relationships and its products potentially reaching broader markets. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include Sylogist's ability to attract and retain customers and to realize on its investments. Although Sylogist believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. Sylogist disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Certain information set out herein may be considered as "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Sylogist's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.