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Calian Reports Third Quarter Results: In Line With Management Expectations

Calian Reports Third Quarter Results: In Line With Management Expectations

Calian Technologies Ltd. has released it’s unaudited results for the third quarter ended June 30, 2012. Revenues for the quarter were $59.3 million, a 1% increase from the $58.5 million reported in the same quarter of the previous year. Net earnings were $3.5 million or $0.45 per share basic and diluted, compared to $3.5 million or $0.45 per share basic and diluted in the same quarter of the previous year. For the nine-month period ending June 30, 2012, the Company reported revenues of $177.8 million and net earnings of $10.7 million or $1.40 per share basic and diluted, compared to revenues of $171.2 million and net earnings of $9.8 million or $1.28 per share basic and diluted in the prior year.
"I am very pleased with the results posted in the third quarter of fiscal 2012. Consolidated revenues continued to grow, albeit modestly, as the increase in BTS service revenues were sufficient to offset the decline in manufacturing related revenues in SED. The growth in our BTS division was comprised of revenues related to our Primacy acquisition as well as organic growth in other segments. This is particularly encouraging given today's very competitive and dynamic marketplace" stated Ray Basler, President and CEO.

"Gross margins were very strong this quarter with both divisions posting exceptional results. SED margins once again reflect excellent project execution and high engineering utilization. Higher margin revenues from Primacy served to buttress the tightening of gross margins from traditional BTS services, which continue to be under pressure due to a very competitive business environment. We continue to pay close attention to market conditions and monitor our pricing strategies accordingly" continued Basler.

"Today, we also announced an increase in our quarterly dividend to $0.28 per share. This represents an increase of 8% over the most recent quarter and a 12% increase over the amount paid in the same quarter last year. We are proud to have generated steady earnings and cash flows, which give us the confidence to continue the payment of healthy and growing dividends to our shareholders" continued Basler.
"Also, our board approved the sale of our US division, subject to normal closing conditions. It is very difficult for a Canadian-owned US-based subsidiary to grow and prosper in the Foreign Military Sales environment, and we are pleased that the buyer will be able to take the enterprise to the next level. The sale will not have a material effect on the financial affairs of the company, but will allow us to refocus our management attention on our core Canadian offerings" stated Basler.
While we are excited about the Company's performance over the last quarter, we are mindful that customer spending patterns are constantly under pressure. The federal government's cost cutting initiatives along with increased competitive pressures will certainly present some short term strain however, we continue to believe that our key markets will remain relatively strong in the longer term. Ultimately, revenues realized will be dependent on the extent and timing of future contract awards as well as customer utilization of existing contracting vehicles. Based on currently available information and our assessment of the marketplace, we expect revenues for fiscal 2012 to be in the range of $230 million to $240 million and net earnings in the range of $1.70 to $1.95 per share.

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