Calian Reports Second Quarter Results
Calian Reports Second Quarter Results
Calian Technologies Ltd. has released its unaudited results for the second quarter ended March 31, 2013. Revenues for the quarter were $58.9 million, a 4% decrease from the $61.6 million reported in the same quarter of the previous year. Net earnings were $3.4 million or $0.44 per share basic and diluted, compared to $3.7 million or $0.48 per share basic and diluted in the same quarter of the previous year. For the six-month period ended March 31, 2013, the Company reported revenues of $116.8 million and net earnings of $6.8 million or $0.89 per share basic and diluted, compared to revenues of $118.4 million and net earnings of $7.3 million or $0.95 per share basic and diluted in the prior year.
"Overall, I am pleased with the quarterly results released today, particularly in light of a very difficult federal government marketplace. While a revenue drop is always concerning, I take solace in the fact that it is a direct reflection of the current volatility in the marketplace and not related to our performance or quality of service. That being said, we will continue to be diligent to ensure that we seize available opportunities to expand our service offerings into adjacent and complementary markets. This will be vital as government and defence markets complete the necessary adjustments to eventually reach a state of stabilization. While the SED division was relatively flat compared to last year, our BTS division was hardest hit by government cutbacks. Fortunately, our significant backlog coupled with our strong financial position puts us in a solid position to weather the storm. I am confident that the evolution of our service lines and our recent pursuits in non-government markets will bear fruit and continue to reduce our reliance on those sectors currently experiencing volatility" stated Ray Basler, President and CEO.
"Gross margin percentages were in line with the same quarter last year. However, certain non-recurring items in the SED division served to mitigate the lower margins experienced by our BTS division. While margins on signed contracts are quite predictable, we expect margins on new work to be under pressure, at least for the balance of the year. We will continue to focus on utilization factors and input costs to ensure that margins are enhanced wherever possible" continued Basler.
"Despite the present difficult business environment, we continue to generate substantial profits and strong cash flows. This gives us the confidence to maintain our healthy dividend while at the same time using our normal course issuer bid to repurchase shares should buying opportunities arise. At the same time, we will remain vigilant for opportunities to economically and strategically enhance our service offerings through acquisition" stated Basler.
The company's second quarter performance was negatively impacted by the unsettled business environment in which we currently operate and we continue to remain guarded in our expectations for the balance of the year. In particular, the continued manifestation of the federal government's cost cutting initiatives along with the related increase in competitive pressures have further reduced short term expectations for both revenues and profitability. 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 results to date, along with currently available information and our assessment of the marketplace, we expect revenues for fiscal 2013 to be in the range of $230 million to $245 million and net earnings in the range of $1.60 to $1.85 per share.