CALIAN REPORTS SECOND QUARTER RESULTS Health Services Contract transition successful
Kanata, Ontario – April 28, 2005: Calian Technologies Ltd. (TSX: CTY) today released unaudited results for the second quarter ended March 31, 2005. Revenues for the quarter were $ 38.7 million, a decrease of 21% from the $49.2 million reported in the same quarter of the previous year. Net earnings were $1.8 million or $0.21 per share basic and diluted, compared to $3.2 million or $0.38 per share basic and $0.37 per share diluted in the same quarter last year.
"The results were again in line with management's expectations for the quarter keeping in mind that the second quarter 2004 revenues and profitability benefited from the large MSTAR contract won earlier that year. The Titan acquisition continues to progress as planned and we successfully completed the transition phase of the DND Health Services contract," stated Ray Basler, President and CEO.
"On April 1, 2005 the Health Services contract entered the operational phase and we are confident in our ability to meet or exceed our customer's expectations. While we are disappointed in the lack of follow-on orders for MSTAR, we remain confident in the security and surveillance market and the on-going role MSTAR is expected to play. Our other business units continue to operate to expectations."
After considering the likelihood that MSTAR business will not have a significant impact on the balance of 2005, management's current expectations are that consolidated revenues for 2005 will be in the range of $180 million to $190 million and net earnings per share in the range of $0.85 to $0.95.
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.
CALIAN TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(dollars in thousands except per share data)
Unaudited
Three months ended Six months ended
March 31 March 31
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2005 2004 2005 2004
--------------------------------------------------------------------
Revenues $38,688 $49,246 $76,725 $86,589
Cost of revenues 31,209 39,838 62,321 70,426
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Gross profit 7,479 9,408 14,404 16,163
Selling and marketing 1,357 1,130 2,744 2,254
General and
administration 2,464 2,418 4,759 4,684
Facilities 693 699 1,349 1,359
Amortization of
capital assets 280 282 548 552
Amortization of
intangibles 99 - 198 -
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Earnings before interest
and income taxes 2,586 4,879 4,806 7,314
Interest income, net 154 123 310 233
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Earnings before
income taxes 2,740 5,002 5,116 7,547
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Income taxes - current 1,022 1,063 1,900 1,688
Income taxes - future (34) 721 (40) 973
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988 1,784 1,860 2,661
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NET EARNINGS 1,752 3,218 3,256 4,886
Retained earnings,
beginning of period 20,581 14,458 19,740 13,202
Dividend (672) (423) (1,335) (835)
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Retained earnings,
end of period $21,661 $17,253 $21,661 $17,253
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Net earnings per share:
Basic $0.21 $0.38 $0.39 $0.58
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Diluted $0.21 $0.37 $0.39 $0.57
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Weighted average number
of shares: (Note 5)
Basic 8,403,165 8,445,037 8,361,228 8,355,990
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Diluted 8,495,296 8,632,283 8,453,525 8,565,736
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CALIAN TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, 2005 September 30, 2004
(Unaudited)
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $28,221 $30,997
Accounts receivable 22,119 18,726
Note receivable 178 158
Work in process 3,714 3,747
Prepaid expenses and other 633 875
Future income taxes 2,399 2,428
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57,264 56,931
NOTE RECEIVABLE 358 358
CAPITAL ASSETS 3,745 3,873
INTANGIBLES 1,214 1,412
GOODWILL 5,923 5,923
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$68,504 $68,497
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $18,313 $18,136
Unearned contract revenue 11,516 14,094
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29,829 32,230
FUTURE INCOME TAX LIABILITY 26 96
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29,855 32,326
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CONTINGENCIES (Note 7)
SHAREHOLDERS' EQUITY
Share capital 16,988 16,431
Retained earnings 21,661 19,740
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38,649 36,171
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$68,504 $68,497
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CALIAN TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Unaudited
Three months ended Six months ended
March 31 March 31
--------------------------------------------------------------------
2005 2004 2005 2004
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CASH FLOWS FROM (USED IN)
OPERATING ACTIVITIES
Net earnings $1,752 $3,218 $3,256 $4,886
Items not affecting cash:
Amortization 379 282 746 552
Investment tax credits - 106 - 389
Future income taxes (34) 720 (40) 973
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2,097 4,326 3,962 6,800
Change in non-cash
working capital
Accounts receivable 220 (1,890) (3,393) 493
Work in process (1,690) (4,014) 33 (2,950)
Prepaid expenses
and other (19) 258 222 (9)
Accounts payable and
accrued liabilities 2,193 3,975 176 (593)
Unearned contract
revenue (3,671) (3,432) (2,578) 701
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(870) (777) (1,578) 4,442
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CASH FLOWS FROM (USED IN)
FINANCING ACTIVITIES
Issuance of common shares 278 491 557 973
Dividend (672) (423) (1,335) (835)
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(394) 68 (778) 138
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CASH FLOWS USED IN
INVESTING ACTIVITIES
Acquisition of capital
assets (260) (196) (420) (336)
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NET CASH INFLOW (OUTFLOW)(1,524) (905) (2,776) 4,244
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 29,745 30,334 30,997 25,185
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CASH AND CASH EQUIVALENTS,
END OF PERIOD $28,221 $29,429 $28,221 $29,429
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CALIAN TECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the periods ended March 31, 2005 and 2004
(dollars in thousands)
(Unaudited)
1. ACCOUNTING POLICIES
These interim consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles except
that these interim consolidated financial statements do not provide full
note disclosure.
These interim consolidated financial statements have been prepared using
the same accounting policies used in the preparation of the audited
annual consolidated financial statements for the year ended September
30, 2004, with the exception of the application of the new
recommendations described in Note 2. These interim consolidated
financial statements should be read in conjunction with the audited
annual consolidated financial statements.
2. ADOPTION OF NEW ACCOUNTING POLICIES
Stock-based compensation
Effective October 1, 2003, the Company early adopted the amended
recommendations of the Canadian Institute of Chartered Accountants
Handbook Section 3870, Stock-based Compensation and Other Stock-based
Payments. The amended standard requires that all stock based awards made
to employees be measured and recognized using the fair-value based
method. During the six-month period ending March 31, 2005, the Company
recorded a compensation expense of $18 (2004: $21) relating to its
Employee Share Purchase Plan.
Business combinations, goodwill and other intangible assets
As a result of its recent acquisition of Titan Consulting Group Ltd.,
the Company adopted the recommendations of the Canadian Institute of
Chartered Accountants Handbook Section 1581, Business Combinations and
Section 3062, Goodwill and Other Intangibles Assets. The standard
requires that the acquisition be accounted for using the purchase method
of accounting and accordingly, the purchase price is allocated to the
assets and liabilities based on their estimated fair values as of the
acquisition date. The results of operations relating to the acquisition
must be included in the consolidated financial statements from the
effective date of acquisition. Intangibles are comprised of acquired
customer relationships, order backlog, consultant database and
non-competition agreements. Intangibles are amortized on a
straight-line basis over their estimated useful life not to exceed five
years. A portion of the purchase price is based on a multiple of
earnings achieved during the period September 1, 2004 to August 31,
2005. Once the final purchase price is determined, the final payment
will be accounted for as an incremental cost of the acquisition
resulting in an increase to goodwill.
3. ACCOUNTING ESTIMATES
For the period ended March 31, 2005 and the period ended March 31, 2004,
there have been no material changes in estimates of amounts reported in
prior interim periods or of amounts related to prior fiscal years.
4. SEASONALITY
The Company's revenues and earnings have historically been subject to
some quarterly seasonality due to the timing of vacation periods and
statutory holidays.
5. EARNINGS PER SHARE
The diluted weighted average number of shares has been calculated as
follows:
Three months ended Six months ended
March 31 March 31
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2005 2004 2005 2004
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Weighted average number
of shares - basic 8,403,165 8,445,037 8,361,228 8,355,990
Additions to reflect
the dilutive effect
of employee stock
options 92,131 187,246 92,297 209,746
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Weighted number of
shares - diluted 8,495,296 8,632,283 8,453,525 8,565,736
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Options that are anti-dilutive because the exercise price was greater
than the average market price of the common shares are not included in
the computation of diluted earnings per share. For the three and
six-month period ended March 31, 2005 no stock options were excluded
from the above computation of diluted weighted average number of common
shares because they were anti-dilutive (2004: nil). The number of
options outstanding at March 31, 2005 is 118,025.
6. SEGMENTED INFORMATION
Operating segments are identified as components of an enterprise about
which separate discrete financial information is available for
evaluation by the chief operating decision maker, regarding how to
allocate resources and assess performance. The Company's chief
operating decision maker is the Chief Executive Officer. The Company
operates in two reportable segments described below, defined by their
primary type of service offering, namely Systems Engineering and
Business and Technology Services.
- Systems Engineering involves planning, designing and implementing
solutions that meet a customer's specific business and technical needs,
primarily in the satellite communications sector.
- Business and Technology Services involves both short and long-term
placements of personnel to augment customers' workforces (Staffing) as
well as the long-term management of projects, facilities and customer
business processes (Outsourcing).
The Company evaluates performance and allocates resources based on
earnings before interest and income taxes. The accounting policies of
the segments are the same as those described in the significant
accounting policies note in the audited annual consolidated financial
statements.
Three months ended March 31, 2005
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Business and
Systems Technology
Engineering Services Corporate Total
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Revenues $12,999 $25,689 $- $38,688
Earnings before
interest and
income taxes 1,812 1,238 (464) 2,586
Interest income, net 154
Income taxes 988
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Net earnings $1,752
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Total assets other than
cash and goodwill $12,527 $21,122 $711 $34,360
Goodwill 5,923 5,923
Cash 28,221
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Total assets $68,504
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Three months ended March 31, 2004
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Business and
Systems Technology
Engineering Services Corporate Total
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Revenue $27,133 $22,113 $- $49,246
Earnings before
interest and
income taxes 4,384 899 (404) 4,879
Interest income, net 123
Income taxes 1,784
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Net earnings $3,218
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Total assets other
than cash and
goodwill $16,699 $19,725 $100 36,524
Goodwill 3,246 3,246
Cash 29,429
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Total assets $69,199
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Six months ended March 31, 2005
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Business and
Systems Technology
Engineering Services Corporate Total
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Revenue $26,138 $50,587 $- $76,725
Earnings before
interest and
income taxes 3,463 2,209 (866) 4,806
Interest income, net 310
Income taxes 1,860
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Net earnings $3,256
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Six months ended March 31, 2004
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Business and
Systems Technology
Engineering Services Corporate Total
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Revenue $42,709 $43,880 - $86,589
Earnings before
interest and
income taxes 6,440 1,678 (804) 7,314
Interest income, net 233
Income taxes 2,661
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Net earnings $4,886
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7. CONTINGENCIES
On January 24, 2005, the Company was served with a Statement of Claim
filed in the Ontario Superior Court of Justice claiming $100 million in
damages from Calian and an employee of the Company for breach of
confidence, breach of fiduciary duty and unlawful interference with
economic interests. The claim relates to the recently awarded
limitation of expenditure contract by the Department of National Defence
(DND) for the provision and management of Health Service Providers. The
contract value for the initial 5-year period is in excess of $400
million with 5 additional option years worth an additional $480 million.
The plaintiff has also filed a complaint with the Canadian International
Trade Tribunal (CITT) related to this contract award. Calian has been
granted intervener status in this matter which will enable Calian to
better monitor the CITT proceedings and where appropriate provide
submissions to the Tribunal. The parties have agreed to a stay of
proceedings of the claim against Calian pending a decision by the CITT,
which is expected in or about June 2005. If the claim proceeds after the
CITT decision is released, Calian intends to vigorously defend the
claim, including the basis of the claim and the amounts being sought.
Management believes that it will be successful in its defence of the
claim advanced against the Company. The likely outcome of the claim
cannot be determined at this time.
The Company is party to other claims aggregating to approximately $120,
which are being contested. The potential outcomes of these matters are
not determinable at this time. The Company intends to defend these
actions, and management believes that the resolution of these matters
will not have a material adverse effect on the Company's financial
condition.
On September 7, 2004, the company acquired all of the outstanding shares
of Titan Consulting Group Ltd ("Titan"). The purchase price is based on
the book value of assets and liabilities as of the date of acquisition
plus a multiple of 4.5 times Titan's earnings before interest, taxes and
amortization (EBITDA) of up to $1,567 and 1 times EBITDA in excess of
$1,567 achieved during the period September 1, 2004 to August 31, 2005.
Following the completion of the 12-month earnout period, the balance of
the cash and shares are to be calculated and paid during the first six
months of fiscal 2006. The final purchase price will be determined and
accounted for as an incremental cost of the acquisition resulting in an
increase to goodwill.
8. COMMITMENTS
As part of its e-business strategy, during the year 2000, the Company
entered into a 10-year lease for an office building in the Ottawa area
expiring in April 2010. Upon exit of the e-business sector in 2001, the
Company did not have any requirements for the space and accordingly
sublet the excess space to a third party for a period of 5 years ending
May 2006. In the event the sub-lessee defaults on the payment or the
Company cannot sublease the premises for the remaining 4 years, Calian
will be required to assume the lease including related operating costs
for the remaining term of the lease. The lease payments including
operating costs relating to the excess space amount to approximately
$960 per year.
9. GUARANTEES
In the normal course of business, the Company enters into agreements
that may provide for indemnification and guarantees to customers in
transactions such as staffing, outsourcing and engineering. These
indemnification undertakings and guarantees may require the Company to
compensate customers for costs and losses incurred as a result of
various events, including breaches of representations and warranties,
intellectual property right infringement, claims that may arise while
providing services, or as a result of litigation that may be suffered by
customers. The Company mitigates its responsibility by removing from its
contracts clauses related to liabilities for indirect or special damages
such as loss of revenue or profit in all of its engineering agreements.
The Company also mitigates the risk of loss by including, where
possible, similar indemnification clauses in the agreements entered into
with its subcontractors. The term and nature of these indemnifications
vary based upon the agreement, which often provides no limit.
Consequently, the Company is unable to make a reasonable estimate of the
maximum potential amounts that the Company could be required to pay to
its customers. Historically, the Company has not been obligated to make
significant payments under these indemnification clauses.
10. COMPARATIVE FIGURES
Certain of the comparative figures have been reclassified to conform to
the financial statement presentation adopted this fiscal year.
Management Discussion and Analysis - Second Quarter 2005:
RESULTS OF OPERATIONS - SECOND QUARTER 2005
Revenues:
For the second quarter of 2005, revenues were $38.7 million,
representing a decrease of 21.4% over the $49.2 million reported in the
second quarter of 2004.
Systems Engineering's revenues were $13.0 million in the quarter, a
decrease of 52.1% over the $27.1 million recorded in the second quarter
of last year. While the mix of projects has changed from the previous
year, reduced MSTAR revenues account for the majority of this decrease.
Due to the project nature of its business, the SED division is
susceptible to significant variation in volumes of activity from period
to period.
Business and Technology Services reported a 16.2% increase with revenues
of $25.7 million compared to $22.1 million for the same quarter of last
year. The majority of the increase relates to the inclusion of three
months of revenues relating to the acquisition of Titan Consulting Group
Ltd. The balance of the division was able to achieve revenues similar to
the prior year despite a somewhat uncertain federal government
environment. During the second quarter, the division successfully
completed the transition phase of the DND Health Services Support
Contract. The operation phase of the contract begins April 1, 2005.
Gross margin:
Gross margin was 19.3% in the second quarter of 2005, which is
consistent with the 19.1% reported in the second quarter a year ago.
Gross margin in Systems Engineering was 24.0% compared to 21.9% in the
second quarter of 2004 due to excellent execution and retiring risk on
certain large contracts. Gross margin in Business and Technology
Services was 17.0% compared to the 15.7% reported in the second quarter
of 2004 as a result of the inclusion of Titan, which improved the
overall mix for the division.
Operating expenses:
Selling, marketing, general and administration expenses totaled $4.5
million or 11.7% of revenues in the second quarter of 2005 compared to
the $4.2 million or 8.6% of revenues reported in the second quarter of
2004. The increase is mainly attributable to the inclusion of three
months of operating expenses relating to the acquisition of Titan.
Amortization of intangibles
During 2004, the Company acquired intangibles as a result of its
acquisition of Titan in September 2004. These intangibles are amortized
over their expected useful life, not exceeding 5 years. During the
second quarter of 2005, the Company amortized $0.1 million.
Income taxes
The provision for income taxes for the second quarter of 2005 was $1.0
million compared to $1.8 million a year ago commensurate with the level
earnings before income taxes.
Net earnings:
As a result of the foregoing, the Company recorded net earnings of $1.8
million or $0.21 per share basic and diluted in the second quarter of
2005, compared to $3.2 million or $0.38 per share basic and $0.37 per
share diluted in the same quarter of the prior year.
RESULTS OF OPERATIONS - Six-month period ending March 31, 2005
Revenues:
During the first six months of this year, revenues were $76.7 million
compared to $86.6 million for the first six months of fiscal 2004,
representing a decrease of 11.4%. This is mostly attributable to a
decrease in MSTAR revenues offset partially by the inclusion of 6 months
of revenues relating to the Titan acquisition.
Revenues in the Systems Engineering segment decreased 38.9% to $26.1
million from $42.7 million and revenues in the Business and Technology
Services segment increased 15.3% to $50.6 million from 43.9 million.
For the Systems Engineering Division we continue to view positively
future prospects with the MSTAR product. However, because of the long
lead-time required to deliver this product, we do not expect a
significant amount of revenue to be generated during the remaining two
quarters of 2005.
For the Business and Technology Services Division although the
environment is showing signs of modest recovery, we do not expect a
significant increase in government spending over the next several
quarters. The Health Services Support Contract will begin generating
revenues effective April 1, 2005 which will have a significant impact on
the overall growth for this division in 2005.
Gross Margin:
Although the revenue mix was significantly different than in the prior
year, gross margin during the first six months of 2005 was 18.8%,
compared to 18.7 % for the equivalent period of 2004.
With the DND Health Services Support Contract beginning its operations
on April 1, 2005, it is expected that the overall gross margin for the
Company will decrease. However as explained below, operating expenses on
this Health Services Support contract as a percentage of revenues is
expected to be lower than the current average for the Company and
accordingly will compensate for the lower gross margin. Management
expects Company wide net margins to hold or improve.
Operating expenses:
Selling, marketing and general and administration, totaled $8.9 million
or 11.5% of revenues in the first six months of 2005 compared to $8.3
million or 9.6% of revenues for the same period in 2004. The inclusion
of Titan's operating expenses represents the majority of this increase.
With the addition of the Health Services Support contract, operating
expenses will increase to reflect costs associated with managing this
contract. However, management expects the overall costs as a percentage
of revenues to be less than its current average resulting in a decrease
in operating expenses as a percentage of revenues.
Income Taxes:
The provision for income taxes for the six-month period ending March 31,
2005 was $1.9 million, compared to $2.7 million a year ago. The income
tax expense for the first 6 months of 2004 was positively impacted by an
increase in the effective income tax rate applied to the valuation of
future income tax assets. In 2005 the Company will be required to pay
taxes on all of its earnings.
Net Earnings:
As a result of the foregoing, the Company recorded net earnings of $3.3
million or $0.39 per share basic and diluted for the first six months of
fiscal 2005, compared to $4.9 million or $0.58 per share basic and $0.57
per share diluted in the same period of the prior year.
BACKLOG
The backlog at March 31, 2005 is $1,124 million with terms extending to
fiscal 2014. This compares to $257 million reported at the end of
September 2004. Contracted backlog represents revenues remaining to be
earned on signed contracts, whereas option renewals represent a
customer's option to further extend existing contracts under similar
terms and conditions. Most contracts provide the customer with the
ability to adjust the timing and level of effort throughout the contract
life and as such the following represents management's best estimate of
the ultimate backlog and related consumption profile.
(dollars in millions) TOTAL Fiscal 2005 Fiscal 2006 Beyond
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Contracted Backlog $533 $81 $101 $351
Option Renewals 591 1 10 580
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TOTAL $1,124 $82 $111 $931
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Business and
Technology Services 1,094 63 100 931
Systems Engineering 30 19 11 -
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TOTAL $1,124 $82 $111 $931
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FINANCIAL CONDITION AND CASHFLOWS:
Cash flows used in operating activities during the first 6 months of
2005 were $1.6 million as compared with a cash inflow of $4.4 million
during the same period of 2004. Cash flows from earnings decreased by
$2.8 million. As expected working capital requirements increased by $3.2
million over 2004 mainly due to a decrease in unearned contract revenues
as the Company performed the work associated with upfront customer
advances. At March 31, 2005, the Company had a short-term credit
facility of $10 million with a Canadian chartered bank that bears
interest at prime and is secured by assets of the Company. An
outstanding letter of credit in the amount of $0.6 million was applied
against the available line.
As a result of increasing its dividend payment to 8 cents per share
during the first quarter of 2005, the Company paid $0.7 million in
dividends compared to $0.4 million or 5 cents per share in the second
quarter of the prior year.
We expect cash balances to decrease further over the course of the year
as we meet our obligations associated with advance payments and fund new
working capital requirements associated with the Health Services
contract.
SEASONALITY
The Company's operations have historically been subject to some
quarterly seasonality due to the timing of vacation periods and
statutory holidays. Typically the Company's first and last quarter will
be negatively impacted as a result of the Christmas season and summer
vacation period. During these periods, the Company can only invoice for
work performed and is also required to pay for statutory holidays. This
results in reduced levels of revenues and in a drop in gross margins.
This seasonality may not be apparent in the overall results of the
Company depending on the impact of the realized sales mix of its various
projects.
OUTLOOK
Management believes the Company is well positioned for sustained growth
in the long-term. The Company operates in markets that will continue to
require the services that the Company delivers. To further assure itself
of a stable source of revenues, the Company will focus on increasing the
percentage of its revenues derived from recurring business. Its
acquisition strategy focusing on adding complementary businesses to the
Company's mix will also be an additional source for growth.
The Systems Engineering Division has been working within a depressed
satellite sector for the last few years with no significant rebound
expected in the near-term. In addition, several large satellite
operators have recently been purchased using highly leveraged financial
structures and we believe this may impact capital spending, which in
turn may reduce new opportunities in the near term. However, management
believes that new satellites adopting the latest technologies will be
required in the medium term to maintain and improve service offerings.
In addition, management believes the surveillance and security market
will continue to be strong in the near term and although management
cannot predict the timing and extent of future orders, it is confident
that systems such as MSTAR will continue to be in demand. The continued
strengthening of the Canadian dollar will impact the Systems Engineering
Division's competitiveness when bidding against foreign competition on
projects denominated in US dollars.
The Business and Technology Services Division's services are adaptable
to many different markets. Currently, its strength lies in providing
program management and delivery services to the Department of National
Defence. This was further demonstrated with the recent win of the Health
Services contract. Management believes that this department and many
others within the federal government will continue to require more
support services from private enterprises to supplement their current
workforce. Although Calian has experienced delays during the last few
years, management believes that the types of service the division offers
will continue to be attractive to government agencies going forward.
With its recent acquisition of Titan and the award to Calian of two
standing agreements for SAP and Peoplesoft resources, Calian is now well
positioned to take advantage of the expected growth in government ERP
requirements.
As indicated in Note 7 of the Company's financial statements, the
Company has been served with a Statement of Claim claiming $100 million
in damages from Calian and an employee of the Company. The plaintiff has
also filed a complaint with the Canadian International Trade Tribunal
(CITT) related to this contract award. Calian has been granted
intervener status in this matter which will enable Calian to better
monitor the CITT proceedings and where appropriate provide submissions
to the Tribunal. The parties have agreed to a stay of proceedings of the
claim against Calian pending a decision by the CITT, which is expected
in or about June 2005. If the claim proceeds after the CITT decision is
released, Calian intends to vigorously defend the claim, including the
basis of the claim and the amounts being sought. Management believes
that it will be successful in its defence of the claim advanced against
the Company. The likely outcome of the claim cannot be determined at
this time.
GUIDANCE
As a result of our present backlog and based on the above information
related to the current market conditions and demand, the Company expects
2005 revenues to be in the range of $ 180 million to $190 million and
net earnings per share in the range of $0.85 to $0.95.
REVIEW OF QUARTERLY STATEMENTS BY AUDITORS
The Company's auditors have not reviewed the financial statements for
the period ending March 31, 2004.
For further information, please contact
Ray Basler
President and Chief Executive Officer
Telephone: 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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