Calian's Second Quarter Report May 9, 2000

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Calian Second Quarter 2000 Results
 

CALIAN TECHNOLOGY LTD. REPORTS RECORD SECOND QUARTER RESULTS
Revenues increase 36% to $31.4 Million for the quarter

Kanata, Ontario, May 9, 2000 - Calian Technology Ltd. (TSE: CTY) reported record net earnings for the quarter ended March 31, 2000 of $1,235,000 representing an increase of $458,000 or 59% over the $777,000 reported for the second quarter of the 1999 fiscal year. The earnings per share were $.14 basic and $.12 fully diluted as compared to $.09 basic and $.08 fully diluted for the same quarter last year.

Revenues for the quarter were $31.4 Million as compared to $23.1 Million for the same period last year representing an increase of $8.3 Million or 36%. Gross margin for the quarter was 19.4% which represents an increase of 2.4% over the second quarter last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter were $1,742,000 compared to $1,093,000 in the same quarter last year, representing an increase of 59%.

Consolidated backlog at March 31, 2000 was $137.3 Million with bookings of $27 Million for the quarter, as compared to a backlog position of $141.1 Million at December 31, 1999.

Highlights of this past quarter include:

  • The systems engineering division signed a deal to provide the uplink delivery and management system software for XM Satellite Radio Inc.;

  • The systems engineering division won a $1.5 million contract to provide LMDS test equipment to a telecommunications equipment provider;

  • Acquired and integrated MacDonald & Brisson, a staffing services company;

  • Announced the acquisition of Learning-Portal.com and Productivity Point International Ottawa in order to further enhance Calian's business to employee service offering; and

  • The signing of a deal with Informix Corporation to create the first Informix Centre of Excellence in Canada.

"Calian has turned in yet another outstanding quarter" commented Larry O'Brien, Chairman and CEO, "Our performance is directly related to the quality and enthusiasm of our more than 2,200 employees. I wish to thank them all for their continued hard work & dedication."

Calian is a leading professional and technical services company helping customers become more successful through three strategic offerings: e-Business solutions, Human Asset Management solutions, and Systems Engineering solutions.

Calian's e-Business solutions focus on helping clients take advantage of new e-business technologies to leverage their knowledge capital, and make their workforce more productive and better informed. Human Asset Management solutions give our clients the ability to exercise critical workforce control. Systems Engineering provides leading-edge communications infrastructures to the telecommunications and government sectors.

Ranking among the top professional services organizations in Canada, Calian has annual revenues of more than $100 Million and a staff base of more than 2,200. Investing in new markets and new opportunities, Calian now serves customers in over 14 countries on six continents.

 
 

Consolidated financial statements follow:

CALIAN TECHNOLOGY LTD. CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in thousands except per share data)
(unaudited)

 

 

Three months ended
March 31,

 

Six months ended
March 31,

 

2000

 

1999

 

2000

 

1999

Revenues

$ 31,379

 

$ 23,080

 

$ 60,307

 

$ 43,510

Cost of revenues

25,302

 

19,162

 

48,628

 

36,166

Gross profit

6,077

 

3,918

 

11,679

 

7,344

               
Selling and marketing

1,657

 

856

 

3,200

  1,661
General and administration

2,007

 

1,461

 

3,984

 

2,645

Facilities

671

 

508

 

1,253

 

1,065

4,335

 

2,825

 

8,437

 

5,371

Earnings before depreciation and amortization, interest and income taxes (EBITDA)

1,742

 

1,093

 

3,242

 

1,973

Depreciation and other amortization

405

 

291

 

790

 

572

Interest income, net

75

 

65

 

207

 

158

Earnings before taxes and goodwill charges

1,412

 

867

 

2,659

 

1,559

Income taxes

31

 

17

 

51

 

27

Earnings before goodwill charges

1,381

 

850

   

2,608

 

1,532

Goodwill charges

146

 

73

 

273

 

146

NET EARNINGS

$ 1,235

 

$ 777

 

$ 2,335

 

$ 1,386

               
               
Earnings per share:              
Basic $ 0.14   $ 0.09   $ 0.26   $ 0.16
Fully Diluted $ 0.12   $ 0.08   $ 0.24   $ 0.15
Earnings per share before goodwill charges:              
Basic $ 0.15   $ 0.10   $ 0.29   $ 0.18
Fully Diluted $ 0.14   $ 0.09   $ 0.27   $ 0.16
Weighted average number of shares              
Basic 9,079,726   8,746,905   9,001,887   8,750,190
Fully Diluted 9,923,116   9,713,620   10,102,821   9,709,805

 

CALIAN TECHNOLOGY LTD.

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

(Unaudited)

 

March 31,
2000

 

September 30, 1999

 

(unaudited)

   
CURRENT ASSETS      

Cash and cash equivalents

Accounts receivable

Unbilled accounts receivable

Prepaid expenses and other

$ 15,647

22,751

5,224

1,353

  $ 19,692

17,090

4,397

1,923

  44,975   43,102
GOODWILL 9,828   8,610
CAPITAL ASSETS 7,066   5,770
  $ 61,869   $ 57,482
CURRENT LIABILITIES      
Accounts payable and accrued liabilities

Unearned contract revenue

Current portion of long-term debt

$ 10,785

19,775

518

  $ 12,200

15,750

559

  31,078   28,509
LONG-TERM DEBT 320   2,747
  31,398   31,256
       
SHAREHOLDERS' EQUITY      
Share capital

Retained earnings

16,089

14,382

  14,179

12,047

  30,471   26,226
  $ 61,869   $ 57,482

 

CALIAN TECHNOLOGY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

(Unaudited)

Six months ended March 31,

 

2000

 

1999

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES      
Net earnings

$ 2,335

 

$ 1,386

Items not affecting cash      

Deferred lease inducements

46

 

46

Amortization

1,063

 

718

 

3,444

 

2,150

Change in non-cash working capital      
Accounts receivable

(4,809)

 

(3,186)

Unbilled receivable

(827)

 

587

Prepaid expenses

572

 

(111)

Accounts payable

(2,297)

 

(2,018)

Unearned contract revenue

4,025

 

4,251

 

108

 

1,691

 

CASH FLOWS FROM (USED IN) FINANCING ACTIVITES

     
Repayment of debt

(1,489)

 

(30)

Issuance of common shares

551

  -
Dividend adjustment -  

15

Repurchase of common shares -  

(201)

 

(938)

 

(216)

CASH FLOWS FROM (USED IN) INVESTING ACTIVITES

     
Acquisition of capital assets

(2,058)

 

(401)

Business acquisitions

(1,157)

(56)

 

(3,215)

 

(457)

       
NET CASH INFLOW (OUTFLOW)

(4,045)

 

1,018

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

19,692

 

17,802

CASH AND CASH EQUIVALENTS, END OF PERIOD

$ 15,647

 

$ 18,820

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