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Calian Technologies Ltd. (TSX: CTY) reported revenue in its business and technology services division fell 6.7 percent year over year to C$37.3 million (US$34.8 million) in the company’s fiscal first quarter ended Dec. 31. The segment provides IT staffing and other services.
Calian ranks No. 10 on the list of largest Canadian staffing firms.
With a significant portion of the BTS revenues generated by the Federal government, the demand for services in most of the BTS market segments continued to be affected by the government spending cuts, according to the company.
“BTS margins continue to be challenged by intensified competition for new work,” President and CEO Ray Basler wrote in a letter to shareholders. “For the near term, we expect that margins on new work in both divisions will continue to be under pressure.”
Total first-quarter revenue at the company fell 10.5 percent to C$51.8 million (US$48.4 million) from C$57.9 million in the same quarter last year. Gross margin improved to 18.9 percent from 18.8 percent in the year-ago quarter. Net profit fell 18.8 percent year over year to C$2.8 million (US$2.6 million).