CALIAN ANNOUNCES THAT FISCAL 2009 PERFORMANCE IS EXPECTED TO EXCEED PREVIOUS GUIDANCE
(All amounts in this release are in Canadian Dollars)
Ottawa, Ontario January 27, 2009 - Calian Technologies Ltd. (TSX: CTY) today announced revised guidance that it expects diluted earnings per share of $1.50 to $1.70 on consolidated revenues of $200 million to $220 million for its 2009 fiscal year compared to its previously announced guidance of $1.25 to $1.40 earnings per share on consolidated revenues of $195 million to $215 million. The increase in earnings and revenues from previous guidance is due to stronger than expected first quarter results from both the BTS and SED divisions as well as expectations for improved performance for the balance of the year.
In the BTS division, recent contract wins along with accelerated customer spend profiles and increased scope on existing government contracts, has greatly enhanced future expectations for the outsourcing group. During the first quarter, our staffing group experienced an increase in government work, thereby solidifying our expectations for the balance of the year. The increased revenue in the BTS division is not expected to attract any significant incremental overheads, thus resulting in an enhanced contribution to profitability.
In the SED division, custom manufacturing requirements have increased well beyond original expectations. Significant increases in the manufacturing workforce along with higher than anticipated utilization levels are expected to provide enhanced contribution with only nominal increases in production and general overheads. Engineering project execution remains strong and is expected to provide added contribution as program risks diminish. Also, the fall of the Canadian dollar in recent months has provided enhanced margin on recent contracts that were originally bid at previously prevailing exchange rates.
The above operational improvements coupled with the significant level of share repurchases early in the fiscal year account for the improved guidance for both revenues and diluted earnings per share.
Subject to final adjustments, the revenues and earnings per share for the first quarter are currently expected to be $55 million and $0.42 per share respectively. The first quarter results include a pre-tax provision of $0.8 million related to accounts receivable from Nortel at December 31, 2008. At this time, it is expected that services will continue to be provided to Nortel until the conclusion of their restructuring under creditor protection. Details of the first quarter results will be released on February 4, 2009.
We are very pleased with our results for the first quarter, particularly in light of the current economic conditions. Our existing long-term contracts coupled with our concentration of work with the federal government has been extremely beneficial to date and is expected to assist us in weathering the economic storm ahead stated Ray Basler, President and CEO. While our present outlook for the balance of the year has improved, we are cognizant of the fact that the current business environment is very dynamic. We continue to carefully monitor the situation and caution that future adjustments to our guidance may be required as our government and commercial customers deal with this most unusual economic situation 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 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.
For further information, please contact us at or phone us at 613-599-8600
Ray Basler
President and Chief Executive Officer
306-931-3425
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. Such statements are generally accompanied by words such as "intend", "anticipate", "believe", "estimate", "expect" or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on firm fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including 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, please see the Company's most recent annual report and other 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.
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