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Calian Reports First Quarter Results: Strong Start to a New Fiscal Year

Calian Reports First Quarter Results: Strong Start to a New Fiscal Year

(All amounts in this release are in Canadian Dollars)

Calian Technologies Ltd. (TSX:CTY) today released unaudited results for the first quarter ended December 31, 2011. Revenues for the quarter were $56.8 million, a 7% increase from the $53.3 million reported in the same quarter of the previous year. Net earnings were $3.6 million or $0.47 per share basic and diluted, compared to $3.1 million or $0.41 per share basic and diluted in the same quarter of the previous year.

"Today, we reported the highest level of first quarter revenues and earnings in the Company's history and we are very pleased to start the fiscal year on such a strong note. Both divisions showed healthy increases in revenues relative to the prior year. Our SED division had a strong quarter, bolstered by heightened activity levels in the manufacturing group due to a significant short-term requirement from one of our US military customers.

Likewise, our BTS division continued its positive momentum, producing growing revenues from increased activity in all major sectors" stated Ray Basler, President and CEO.

"Gross margins remained strong for the quarter and were consistent with the prior year. SED realized excellent margins as a result of economies of scale in the manufacturing area coupled with better than expected margins on the close-out of certain projects. Our BTS division continued to experience margin contraction due to the effects of significant competitive pressures for new work. Fortunately our strong backlog of long-term work affords us the ability to cope with the market competitiveness created by current economic conditions" continued Basler.

During the quarter, the company repurchased 65,200 shares under its Normal Course Issuer Bid at an average price of $17.71 representing an excellent use of surplus cash to enhance overall shareholder value.

While growth has been strong this quarter, we are cognizant of the fact that increased activity levels in certain areas may not be recurring. We continue to believe that our key markets will remain relatively strong, although we are aware of the potential impact of government cost cutting initiatives and increased competitive pressures. While recent contract signings have bolstered our confidence in meeting our financial targets, revenues ultimately realized will be dependent on the extent and timing of future contract awards as well as customer utilization of existing contracting vehicles. Based on available information and our prudent assessment of the marketplace during these unsettled economic times, we expect revenues for 2012 to be in the range of $230 million to $250 million and net earnings in the range of $1.70 to $1.95 per share. 

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