Calian Technologies Ltd.
TSX : CTY

Calian Technologies Ltd.

December 02, 2009 09:24 ET

Calian Signs Contract Renewals Valued at $70 Million

(All amounts in this release are in Canadian Dollars)

OTTAWA, ONTARIO--(Marketwire - Dec. 2, 2009) - Calian Technologies Ltd. (TSX:CTY) is pleased to report that its BTS division has been awarded a Standing Offer by the Department of National Defence to provide the Royal Military College (RMC) with the services of researchers to perform research activities, on an as and when requested basis. The initial five-year period covers January 1, 2010 to December 31, 2014 with an option to extend the Standing Offer for a further one-year period, for a potential value of $60 million over the six year duration. Annualized revenues are initially expected to be in line with the current level of business. The new Standing Offer is expected to start in the coming quarter after finalization of outstanding logistical and administrative details and will replace the existing agreement which will have a remaining backlog of approximately $4 million at the time of transition.

This Standing Offer will allow Calian to continue to provide research assistance to University Teachers at RMC who carry out Research and Development in the broad disciplines of engineering, science and humanities. This new agreement allows Calian to further its relationship with RMC which began in 1997. The new Standing Offer is expected to start January 1, 2010 and will supersede the existing Standing Offer which expires on December 31, 2009.

"This award is indicative of the superior efforts of our current Research Assistance Team at RMC, and Calian's continued commitment to the support of today's Canadian Forces." said Tom Coates, Vice President and General Manager, Business and Technology Services.

In addition, under the terms of a recently renewed contract, Calian's SED division will provide operations and maintenance services for the Canadian Space Agency's (CSA) Satellite Operations Directorate at its facilities in Saint-Hubert, Quebec and in Saskatoon, Saskatchewan. The contract runs until March 31, 2012 and is valued at over $10 million.

The contract is for the operational support, development, maintenance, management and ongoing evolution of satellite control and support systems provided by the CSA. This contract is a continuation of work SED has performed for CSA since 1994 and involves services that support CSA's current satellites Radarsat-1 and SciSat-1. This renewal contract is expected to provide revenues similar to current levels.

"We are very pleased with these renewals as they help to solidify our backlog and provide a solid base of work for the future. In addition, they provide the ability to evolve and strengthen our long-standing relationships with these key customers" stated Ray Basler, President and CEO.

About Calian

Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. The Business and Technology Services Division augments customer workforces with flexible short and long-term placements, recruitment and outsourcing of engineering, health care professionals and other skilled professionals. The Systems Engineering Division plans, designs and implements solutions for many of the world's space agencies and leading communications satellite manufacturers and operators, as well as providing contract manufacturing services for customers in North America.


DISCLAIMER

Certain information included in press releases on this site is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Calian to integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, see the reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

Contact Information

  • Calian Technologies Ltd.
    Ray Basler
    President and Chief Executive Officer
    306-931-3425
    or
    Calian Technologies Ltd.
    Jacqueline Gauthier
    Chief Financial Officer
    613-599-8600
    www.calian.com
    ir@calian.com