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Calian revenue falls 7%, cites decline in government spending

August 07, 2014

Calian Technologies Ltd. (TSX: CTY) reported revenue fell 7.4 percent to C$53.8 million (US$50.5 million) in its fiscal third quarter ended June 30. The Ottawa-based firm cited continued contraction in government spending.

Revenue fell 3.6 percent to C$39.7 million (US$37.2 million) in Calian’s business and technology services segment, which includes staffing. The company said its short-term staffing group experienced revenue decline because of overall reduced demand as well as significant competitive pressures for available work.

Quote
“The results released today reflect continued contraction in government spending and was evident in both of our divisions,” said President and CEO Ray Basler. “Program delays and cancellations within government in general and DND specifically, have resulted in reduced take-up on existing contract vehicles and postponed revenue realization on new ones. The areas that have been most affected by military spending cuts are the vehicle maintenance services and training services in our [business and technology services] division."

Revenue

  Q3 2014 (C$ 000s) Q3 2013 (C$ 000s) % growth Q3 2014 (USD $000s)
Revenue $53,839 $58,123 -7.4% $50,455

Revenue by segment

  Q3 2014 (C$ 000s) Q3 2013 (C$ 000s) % growth Q3 2014 (USD $000s)
Business and technology services $39,679 $41,143 -3.6% $37,185
Systems engineering $14,160 $16,980 -16.6% $13,270

Net profit for the period

  Q3 2014 (C$ 000s) Q3 2013 (C$ 000s) % growth Q3 2014 (USD $000s)
Net profit for the period $2,866 $3,276 -12.5% $2,686

Share price and market cap
Calian shares rose 0.46 percent to C$19.64 in late morning trading. The company had a market cap of C$144.26 million, according to Google.