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Gold/Mining/Energy : Calian Technology a Company with infinite growth potential -- Ignore unavailable to you. Want to Upgrade?

To: Ciao who wrote (113)	1/11/2001 4:27:59 PM
From: Ellie	Read Replies (1) \| Respond to of 132

Revenue growth still expected to bo 20%...but..this news. Calian Technology Ltd - News Release Calian prepares for $2-million loss in first quarter Calian Technology Ltd CTY Shares issued 8,901,438 2001-01-10 close $3 Thursday Jan 11 2001 News Release Mr. Shaun McEwan reports Calian is taking a one-time charge against earnings in the first quarter of fiscal 2001, ending Dec. 31, 2000, of approximately $2.0-million as a result of lower than expected revenues in its e-services division. Consolidated revenues for the quarter are expected to be in the range of $31.5-million to $32.5-million as compared with $28.9-million for the quarter ended Dec. 31, 1999. This represents a growth of between 9 per cent and 12 per cent primarily as a result of the continued strong performance in the resourcing and systems engineering divisions. The company still expects to record 20 per cent or better revenue growth for the full year. This growth will be strongest in the resourcing division. Performance in the e-services division, which represented less than 10 per cent of revenues last fiscal year, is expected to be flat. This cost-cutting program will involve streamlining e-business operations, reducing the level of selling, general and administrative costs, and include staff reductions of approximately 25 personnel. As a result of the special charge, Calian expects to report a net loss of between $1.7-million and $2.0-million, or 16 cents to 19 cents per fully diluted common share, for the first quarter. "These necessary changes will strengthen Calian and permit us to focus on our core operations where we have strong growth opportunities" said Shaun McEwan, president and chief executive officer of Calian. "Containing costs in the e-services division, our smallest business segment, while continuing the strong performance of our resourcing and systems engineering businesses should allow us to return to profitability in the second quarter." Complete results for the quarter are to be released on schedule during the third week of February, 2001. Calian also intends to make a normal course issuer bid through the facilities of the Toronto Stock Exchange, which would allow the company to repurchase its shares in the open market. The proposed normal course issuer bid is subject to regulatory approval. Repurchases under the proposed issuer bid must be made at market prices and will not exceed 5 per cent of Calian's issued and outstanding common shares as at the commencement of the bid. It is intended that the issuer bid will commence on or about Jan. 15, 2001, and will not extend beyond Jan. 14, 2002. In no event will Calian purchase in any given 30-day period during the course of the bid more than 2 per cent of the common shares issued and outstanding as at the commencement of the bid. Calian believes its common shares constitute an appropriate use of its general funds in order to increase shareholder equity. The current strong cash position of Calian allows Calian to implement the repurchase plan without adversely impacting Calian's operations. All common shares purchased by Calian will be cancelled. Calian has not repurchased any common shares within the past 12 months. To Calian's knowledge, after reasonable inquiry, none of the directors, officers or other insiders of Calian or any associate of any such persons, or any associate or affiliate of Calian currently intends to sell common shares to Calian during the course of the issuer bid. Calian will hold a telephone conference call at 10 a.m. on Thursday, Jan. 11, 2001, to discuss this restructuring. Hosting the call will be Larry O'Brien, chairman of the board, Mr. McEwan, president and CEO, and Brian Aitken, vice-president and chief financial officer. Interested participants from the financial and media community should call 1-888-740-8770 and quote reservation No. 17599982 at approximately 9:50 a.m. Following the presentation, interested parties will be invited to participate in a question and answer session.