Calian Technologies Ltd.
TSX : CTY

Calian Technologies Ltd.

April 27, 2009 15:41 ET

Calian Announces That Fiscal 2009 Performance is Expected to Exceed Previous Guidance

KANATA, ONTARIO--(Marketwire - April 27, 2009) - All amounts in this release are in Canadian Dollars

Calian Technologies Ltd. (TSX:CTY) today announced that it expects basic and diluted earnings per share of $1.80 to $2.10 on consolidated revenues of $210 to $225 million for its 2009 fiscal year compared to its previously announced guidance of $1.50 to $1.70 on consolidated revenues of $200 to $220 million. The increase in earnings and revenues from previous guidance is due to significantly stronger than anticipated second quarter results coupled with slightly improved performance expectations for the last half of the fiscal year.

Subject to final adjustments, revenues for the second quarter and the first six months of fiscal 2009 are currently expected to be $60 million and $115 million respectively with related earnings of $0.67 per share for the second quarter and $1.09 per share for the first six months of fiscal 2009.

Second quarter revenues came in higher than previously expected as SED experienced strong project activity and recent BTS contract wins ramped up faster than first anticipated. While BTS margins were in line with expected levels, SED margins were positively impacted by higher than expected manufacturing labour utilization along with the positive impacts of new orders received at exchange rates that were more favourable than at the time they were originally bid. In addition, margins were enhanced as estimated costs on a fixed price project were adjusted downward due to customer relief from certain technical deficiencies. The recovery of investment tax credits from a prior year further bolstered the quarterly bottom line results. The above mentioned project adjustment and investment tax credit recovery had a positive impact of $0.11 on net earnings per share for the quarter. Despite, higher revenues, the company was able to contain operating costs at previously expected levels. Regular reporting of the second quarter detailed results will be released on May 6, 2009.

For the balance of the year, BTS revenues are expected to remain strong, subject to usual quarterly cyclicality. While the manufacturing component of SED revenues is anticipated to remain healthy, the satellite communications component is expected to experience a decline in revenues as certain large projects will reach completion later in the year.

"While we are very pleased with our results for the quarter, we continue to face a very dynamic business environment. Fortunately our existing long-term contracts, which are concentrated in the defence and government sectors, provide a degree of stability as many of our commercial customers grapple with a most unusual economic situation" stated Ray Basler, President and CEO. "We are confident that we are well positioned to take advantage of available commercial opportunities once the current market uncertainty subsides" continued Basler.

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 (BTS) 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 (SED) 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
    ir@calian.com
    www.calian.com