CALIAN REPORTS SECOND QUARTER RESULTS: RESULTS IN LINE WITH EXPECTATIONS
CALIAN REPORTS SECOND QUARTER RESULTS: RESULTS IN LINE WITH EXPECTATIONSCalian Technologies Ltd has released unaudited results for the second quarter ended March 31, 2011. Revenues for the quarter were $59.4 million, a 12% increase from the $53.1 million reported in the same quarter of the previous year. Net earnings were $3.3 million or $0.42 per share basic and diluted, compared to $3.1 million or $0.40 per share basic and diluted in the same quarter of the previous year. For the six-month period ending March 31, 2011, the Company reported revenues of $112.7 million and net earnings of $6.4 million or $0.83 per share basic and diluted, compared to revenues of $105.2 million and net earnings of $6.5 million or $0.84 per share basic and diluted in the prior year.
"Results for the quarter were once again in line with management expectations. Revenues were strong compared to the second quarter of the prior year. Our BTS division realized a 17% improvement in quarterly revenues as customer utilization was significantly higher on certain long-term contracts and our shorter term staffing group made substantial revenue gains as well. Revenues in the SED division were consistent with those achieved in the second quarter last year as well as the previous quarter. Project related revenue remains steady and manufacturing revenues have stabilized as well. Of course the project nature of the SED business makes it susceptible to potential revenue volatility over the longer term", stated Ray Basler, President and CEO.
"As expected, overall margins have decreased from last year. Lower utilization levels in the SED division coupled with an exceedingly strong Canadian dollar have served to dampen SED margins relative to last year. The BTS division's margins remain virtually unchanged from the same quarter last year, a significant accomplishment given the shifting mix of business as we aggressively pursue our growth agenda. The larger proportion of BTS revenues naturally has a dilutive effect on overall margins. We expect continued competitive pressures on new opportunities, however, we remain confident in the quality and value of our service offerings which has yielded excellent revenue growth to date" continued Basler.
"Overall, our diversified service lines have once again resulted in revenue and profitability gains despite softness in some areas. We have the financial depth and a solid backlog of work from which to grow and we are confident in our long term ability to generate increased profits, cash flows and dividends to our shareholders" continued Basler.We believe that our key markets will remain strong, although we are cognizant of the potential impact of government cost cutting initiatives and overseas military deployment reductions. Ultimately, revenues realized will be dependent on the extent and timing of future contract awards. With private sector revenues showing positive momentum, we are gaining confidence in our ability to meet our previously issued guidance. Accordingly, we expect revenues for 2011 to remain in the range of $215 million to $235 million and net earnings per share in the range of $1.50 to $1.80 per share.