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Calian business and technology division revenue falls 5%

November 14 2013

Calian Technologies Ltd. (TSX: CTY) reported revenue in its business and technology services division fell 5.3 percent year over year to C$38.0 million (US$36.9 million) in the company’s fiscal fourth quarter ended Sept. 30. The segment provides IT staffing and other services; Calian ranks No. 10 on the list of largest Canadian staffing firms.

The business and technology services division continued to cope with ongoing reductions in federal government and defense spending, according President and CEO Ray Basler.

“Our BTS division experienced year over year revenue reductions in all areas except for our health service line which has seen solid growth over the last few quarters,” said Basler.

Gross margin in the business and technology services fell to 16.1 percent from 17.7 percent in the fourth quarter of 2012. Calian attributed the decrease to competitive pressures on new business, particularly in the government and defense marketplace. As long as government cost-initiatives remain in place, competitive pressure on margins will continue, according to the company.

Total fourth-quarter revenue at the company fell 1.1 percent to C$57.5 million (US$55.8 million) from C$58.1 million in the same quarter last year. Gross margin narrowed to 17.3 percent from 18.3 percent in the year-ago quarter.

Fourth-quarter gross margin for Calian narrowed to 17.3 percent from 18.3 percent in the year-ago quarter. And net profit fell 10.1 percent year over year to C$3.0 million (US$2.9 million) in the fourth quarter.

Calian Technologies Ltd. (TSX: CTY)
For the fiscal fourth quarter ended Sept. 30, 2013, compared with the same period in the previous year.
Revenue: C$57.5 million (US$55.8 million), -1.1 percent
Net profit: C$3.0 million (US$2.9 million), -10.1 percent

For the full fiscal year ended Sept. 30, 2013.
Revenue: C$232.5 million (US$225.4 million), -1.5 percent
Net profit: C$13.1 million (US$12.7 million), -7.5 percent

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