Sylogist's (SYZ.TO) board of directors is suspending the quarterly dividend in order to support capital allocation priorities, while the company on Tuesday reported a wider than expected net loss on lower than forecast total revenues in the first quarter, while it transforms to an SaaS business model.
First quarter net loss was C$3.8 million, compared to net loss of $0.935 million in the corresponding year-ago quarter. Basic and diluted loss per common share was $0.16 versus a loss of $0.04. The consensus forecast at FactSet was for a loss of $0.03.
First quarter total revenue was $14.7 million, compared to $16.3 million in the year-ago quarter. The consensus estimates compiled by FactSet for Sales was $15.1 million.
On suspending the company's quarterly dividend, the company noted that in February 2026 the TSX approved the renewal of its NCIB program, under which the company repurchased 95,000 common shares at an average price of $3.84 per share during the first quarter. The company intends to continue utilizing the program as a preferred means of returning capital to shareholders, it added.
"The company remains focused on completing the final steps in its transformation to a dynamic SaaS business model," said Craig O'Neill, Interim President and Chief Executive Officer. "Following several years of investment, we are now proving the value of our cloud-based products with our customers and partners. We are also increasing our emphasis on operational efficiency and go-to-market performance, including the ongoing transition to partner-led project delivery. Although this transition has created short-term pressure on project services revenue, we believe it will enable greater scalability as our SaaS products gain traction in our target markets and ultimately drive stronger recurring revenue growth."
Shares in SYZ were down $0.07 or 1.8% at $3.75 in Canada yesterday.