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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 $100 Million and
a staff base of more than 2,200. Investing in new markets and
new opportunities, Calian now serves customers in over 14 countries
on six continents.
Consolidated financial statements follow:
CALIAN TECHNOLOGY Ltd. CONSOLIDATED STATEMENTS
OF EARNINGS
(dollars in thousands except per share data)
(unaudited)
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Three months ended
March 31,
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Six months ended
March 31,
|
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2000
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|
1999
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|
2000
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1999
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Revenues
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$ 31,379
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$ 23,080
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$ 60,307
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$ 43,510
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Cost of revenues
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25,302
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19,162
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48,628
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36,166
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Gross profit
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6,077
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3,918
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11,679
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7,344
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|
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Selling and marketing
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1,657
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|
856
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3,200
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1,661
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General and administration
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2,007
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1,461
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3,984
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2,645
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Facilities
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671
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508
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1,253
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1,065
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4,335
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2,825
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8,437
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5,371
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Earnings before depreciation and amortization, interest
and income taxes (EBItdA)
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1,742
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1,093
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3,242
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1,973
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Depreciation and other amortization
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405
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291
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|
790
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572
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Interest income, net
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75
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65
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|
207
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158
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Earnings before taxes and goodwill charges
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1,412
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|
867
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2,659
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1,559
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Income taxes
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31
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17
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51
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27
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Earnings before goodwill charges
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1,381
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|
850
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2,608
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1,532
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Goodwill charges
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146
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73
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273
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146
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NET EARNINGS
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$ 1,235
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$ 777
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$ 2,335
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$ 1,386
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Earnings per share:
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Basic
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$ 0.14
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$ 0.09
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$ 0.26
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$ 0.16
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Fully Diluted
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$ 0.12
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$ 0.08
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$ 0.24
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$ 0.15
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Earnings per share before goodwill charges:
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Basic
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$ 0.15
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$ 0.10
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$ 0.29
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$ 0.18
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Fully Diluted
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$ 0.14
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$ 0.09
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$ 0.27
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$ 0.16
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Weighted average number of shares
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Basic
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9,079,726
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8,746,905
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9,001,887
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8,750,190
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Fully Diluted
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9,923,116
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9,713,620
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10,102,821
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9,709,805
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CALIAN TECHNOLOGY Ltd.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(Unaudited)
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March 31,
2000
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September 30, 1999
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(unaudited)
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CURRENT ASSETS
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Cash and cash equivalents
Accounts receivable
Unbilled accounts receivable
Prepaid expenses and other
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$ 15,647
22,751
5,224
1,353
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$ 19,692
17,090
4,397
1,923
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44,975
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43,102
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GOODWILL
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9,828
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8,610
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CAPITAL ASSETS
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7,066
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5,770
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$ 61,869
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$ 57,482
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CURRENT LIABILITIES
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Accounts payable and accrued liabilities
Unearned contract revenue
Current portion of long-term debt
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$ 10,785
19,775
518
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$ 12,200
15,750
559
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31,078
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28,509
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LONG-TERM DEBT
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320
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2,747
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31,398
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31,256
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SHAREHOLDERS' EQUITY
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Share capital
Retained earnings
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16,089
14,382
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14,179
12,047
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30,471
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26,226
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$ 61,869
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$ 57,482
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CALIAN TECHNOLOGY Ltd.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(dollars in thousands)
(Unaudited)
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Six months ended March 31,
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2000
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1999
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| CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
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| Net earnings
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$ 2,335
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$ 1,386
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| Items not affecting cash
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Deferred lease inducements
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46
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46
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Amortization
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1,063
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718
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3,444
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2,150
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Change in non-cash working capital
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Accounts receivable
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(4,809)
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(3,186)
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Unbilled receivable
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(827)
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587
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Prepaid expenses
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572
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(111)
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Accounts payable
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(2,297)
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(2,018)
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Unearned contract revenue
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4,025
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4,251
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108
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1,691
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CASH FLOWS FROM (USED IN) FINANCING
ACTIVITES
|
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Repayment of debt
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(1,489)
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(30)
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Issuance of common shares
|
551
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-
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Dividend adjustment
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-
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15
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Repurchase of common shares
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-
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(201)
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(938)
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(216)
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CASH FLOWS FROM (USED IN) INVESTING
ACTIVITES
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Acquisition of capital assets
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(2,058)
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(401)
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Business acquisitions
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(1,157)
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(56)
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(3,215)
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(457)
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NET CASH INFLOW (OUTFLOW)
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(4,045)
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1,018
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CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD
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19,692
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17,802
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CASH AND CASH EQUIVALENTS, END OF PERIOD
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$ 15,647
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$ 18,820
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