Calian Technology Ltd. Reports Record Second Quarter Results:
Revenues increase 36% to $31.4 Million for the quarter
KANATA, ONTARIO--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:
/T/
CALIAN TECHNOLOGY LTD.
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in thousands except per share data)
(unaudited)
Three months ended Six months ended
March 31, 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, September 30,
2000 1999
(unaudited)
CURRENT ASSETS
Cash and cash
equivalents $ 15,647 $ 19,692
Accounts
Receivable 22,751 17,090
Unbilled accounts
Receivable 5,224 4,397
Prepaid expenses
and other 1,353 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 $ 10,785 $ 12,200
Unearned contract revenue 19,775 15,750
Current portion of
long-term debt 518 559
---------- ----------
31,078 28,509
LONG-TERM DEBT 320 2,747
---------- ----------
31,398 31,256
---------- ----------
SHAREHOLDERS' EQUITY
Share capital 16,089 14,179
Retained earnings 14,382 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
---------- ----------
---------- ---------- |
