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  5. TCS: Could you please discuss Tcs recent quarterly result. [TECSYS Inc.]
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Q: Could you please discuss Tcs recent quarterly result.
Do you feel the company is a wise investment going forward?
Did the quarter live up to your expectations?
Thank you
Asked by maida on July 01, 2025
5i Research Answer:

EPS of 11c missed estimates of 14c; revenue of $46.6M missed estimates of $47.0M. EBITDA of $4.3M missed estimates by 6%. Guidance calls for revenue growth of 8% to 10% in the next year. EPS more than tripled even though revenue growth was largely flat. SaaS revenue rose 29%. Despite OK guidance, the company noted it was planning to increase R&D spending, and this will have an impact on margins. All-in, the quarter was disappointing, especially as other tech names have generally reported very solid results. The stock remains expensive at 64X earnings and is now down 16% YTD. It still has $39M cash and EPS is still expected to grow 50% next year, but it needs to execute and deliver on this growth. We would rate it a HOLD after the decline, but it is 'on watch' and we need to see some improvements here.