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View All NewsCalian Q4 revenue up 13%
Calian Group Ltd. (TSX: CGY) reported revenue rose 12.8% to C$68.8 million (US$52.5 million) in its fiscal fourth quarter ended Sept. 30.
Fourth-quarter revenue rose 22.8% in the Ottawa-based company’s systems engineering division and 8.7% in its business and technology services division, which includes staffing. Calian cited continued strength in all of its service lines; the business and technology services division also benefitted from continued recovery with government spending during fiscal 2016, which resulted in additional demand for Calian’s services in many of the division’s mainstay contracts.
Calian in March changed the company’s name to Calian Group Ltd. (TSX: CGY) from Calian Technologies Ltd. (TSX: CTY). The company aimed for the new name to better reflect the diversity of its services in light of the expansion into areas such as healthcare and training, according to the company.
To support that diversification, Calian announced it acquired on Oct. 31 a small equity position in Cliniconex Inc., an Ottawa-based patient outreach solutions vendor. As part of the investment, Scott Murray, VP of Calian Health Services, has been appointed to the Cliniconex board of directors. Launched in 2011, the Cliniconex SaaS platform aims to boost the productivity of medical clinics by automating patient outreach such as booking notifications, reminders, cancellations, surveys and preventative care reminders.
| (C$ thousands) | Q4 2016 | Q4 2015 | % growth | Q4 2016 (USD $000s) | |
| Revenue | $68,758 | $60,944 | 12.8% | — | $52,510 |
| Gross profit | $12,053 | $10,781 | 11.8% | $9,205 | |
| Gross margin percentage | 17.5% | 17.7% | |||
| Net profit for the period | $3,380 | $2,877 | 17.5% | — | $2,581 |
Quote
“Our fourth quarter saw the achievement of strong financial results, key re-wins of long term contracts and continued success in the diversification of new customers,” said Kevin Ford, President and CEO. "Our total contract signings for the quarter was C$171 million, which has increased our backlog to C$488 million and provides a solid foundation for future years.”
Revenue by segment
| (C$ thousands) | Q4 2016 | Q4 2015 | % growth | Q4 2016 (USD $000s) | |
| Business and technology services | $46,864 | $43,121 | 8.7% | — | $35,790 |
| Systems engineering | $21,894 | $17,823 | 22.8% | — | $16,720 |
Fiscal year 2016 results
| (C$ thousands) | 2016 | 2015 | % growth | 2016 (USD $000s) | |
| Revenue | $274,587 | $242,253 | 13.3% | — | $209,702 |
| Gross profit | $48,834 | $41,511 | 17.6% | $37,295 | |
| Gross margin percentage | 17.8% | 17.1% | |||
| Net profit for the period | $13,593 | $9,767 | 39.2% | — | $10,381 |
Guidance
Calian expects revenue for fiscal year 2017 to be in the range of C$270 million to C$290 million.
Share price and market cap
Shares in Calian were unchanged at C$23.45 in early afternoon trading today. The company had a market cap of C$175.49 million, according to Google.