Calian Group Ltd. (TSX: CGY) reported revenue rose 4.9% in its fiscal first quarter ended Dec. 31. Revenue growth came in the company’s business segment that includes staffing.

The Ottawa-based firm reports revenue in two segments: “Business and technology services” and “systems engineering.”

Revenue rose 13.3% in the business and technology services segment, which includes staffing and other services. The gain offset a 16.0% decrease in Calian’s systems engineering segment, which includes engineering services.

The company renewed its Canadian Army Simulation Centre contract in its fiscal first quarter, with an initial value of C$93 million and with options factored in, an aggregate contract value for the full nine-year period of approximately C$170 million. Factoring in the contract, Calian reported contract signings exceeded C$200 million in the quarter.

Revenue by segment

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“Results for this first quarter are mixed,” CFO Jacqueline Gauthier said. “Our [business and technology services] division saw continued improvements in revenues and EBITDA from strong performance and demand in all its market segments. The [systems engineering] division reported a slower quarter than the prior year driven by a few projects moving to the right and a slightly less favorable revenue mix in the quarter.”

Guidance

Calian expects revenue for fiscal 2019 to be in the range of C$330 million to C$360 million.

Share price and market cap

Calian shares were down 4.5% to C$28.85 at 11:32 a.m. Eastern time; the company had a market cap of C$234.98 million, according to FT.com.