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Systems Xcellence Reports Record First Quarter Revenues & Profits

MILTON, Ontario (July 22, 1999) -- Systems Xcellence Inc. (TSE: SXC), a leading supplier of patient-centric electronic transaction processing software for the healthcare information technology industry, today reported record first quarter financial results.

Total revenues for the first quarter increased to $5.4 million from $4.1 million for the same quarter last year, representing a 31% increase.

The Company’s revenue breaks down as follows:

Three Months Ended May 31, 1999

Three Months Ended May 31, 1998
Software Licenses

$ 3,258,190

$ 2,348,225

Services

$ 1,476,696

$ 1,165,565

Maintenance

$ 645,365

$ 580,719

Total

$ 5,380,251

$ 4,094,509

The Company continues to report strong gross profit margins. First quarter gross profit margins were 75.2%, compared to 72.2% for the same quarter last year.

Net income for the quarter was $617,369, or $0.03 per share, up significantly from $34,621, or $0.00 per share, for the same period last year.

Quarterly Highlights:

  • Awarded contract with Health Care Service Corporation

  • Completes Senior Management Team with the appointment of:

  • Malcolm Macallum – Vice President of Product Development

  • Walter Ellenberger – Senior Vice President of Sales & Marketing

  • John Connolly – Vice President of Corporate Development

  • Signs multi-million dollar deal with a South African Pharmacy Benefit Management company

"We continue to build on the positive momentum initiated in fiscal 1999." said Gordon Glenn, President and CEO. "The significant increase in net income, coupled with strong revenue and gross profit margins this quarter are indicative of the success that we are forecasting for fiscal year 2000. The current contracted order backlog sits at a record level of $19.4 million, $13.5 million of which we expect to recognize as revenue this fiscal year."

Systems Xcellence will be hosting a conference call this morning at 10:00 a.m. to discuss the Company’s first quarter results. Interested parties are invited to participate by calling the conference operator at 1-888-343-1303. The call will be recorded and a re-broadcast may be heard until midnight on Thursday, July 29, 1999 by dialing 1-800-558-5253 and entering reservation # 12800668.

Systems Xcellence, headquartered in Milton, Ontario, is a leading supplier of patient-centric electronic transaction processing software for the healthcare information technology industry. Systems Xcellence combines robust software products, business expertise, and services to deliver superior solutions to the demanding managed care sector. The Company's shares are traded on the Toronto Stock Exchange under the symbol SXC.

Other Release Information:

Quarterly Link (PDF)