Calian Lives Up To Expectations
Calian Lives Up To Expectations
Calian Technologies Ltd. has released it’s unaudited results for the third quarter ended June 30, 2013. Revenues for the quarter were $58.1 million, a 2% decrease from the $59.3 million reported in the same quarter of the previous year. Net earnings were $3.3 million or $0.43 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 ended June 30, 2013, the Company reported revenues of $175.0 million and net earnings of $10.0 million or $1.32 per share basic and diluted, compared to revenues of $177.8 million and net earnings of $10.7 million or $1.40 per share basic and diluted in the prior year.
"Overall, the quarterly results released today were in line with our expectations. Despite a very difficult federal government marketplace we experienced only a slight drop in revenues compared to the same quarter last year. While the SED division was virtually flat compared to last year, our BTS division was coping with continued government cutbacks in certain market segments, offset by a strong showing in the health sector. Our robust backlog continues to play a key role in maintaining our revenue base as we address the realities of slower government spending patterns. During the quarter, several smaller contracts were up for renewal and we were successful in securing all of them. Also we are starting to see the benefit, albeit small at this time, of our non-government initiatives to diversify and evolve our service lines" stated Ray Basler, President and CEO.
"Gross margin percentages were marginally lower than the same quarter last year. This is primarily a reflection of ongoing competitive pressures in the marketplace. Through close scrutiny of operating costs, we were able to negate most of the margin impact and ended the quarter with a bottom line just slightly off last year's mark. We fully expect margins on new work to remain under pressure, at least for the near term. Accordingly, we continue to focus on utilization factors, input costs and market sensitive pricing to ensure that margins are maintained or enhanced wherever possible" continued Basler.
"We continue to generate strong cash flows and pay a healthy quarterly dividend which currently represents a very attractive yield. Also, amidst some softness in our share price, we have taken the opportunity to step up our share repurchase program acquiring nearly 120,000 shares or 1.5% of outstanding stock during the quarter. We continue to remain on the lookout for acquisition opportunities that would strategically enhance our service offerings or augment our customer base" stated Basler.
Given the continued uncertainty associated with federal government spending along with the resultant competition, we remain guarded in our expectations for the balance of the year. 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 $240 million and net earnings unchanged in the range of $1.60 to $1.85 per share.