Net earnings for the local technology services seller were $3.4 million in its first quarter of fiscal 2013, down 5.5 per cent from the $3.6 million in the same quarter the previous year.
Revenues for the quarter ended Dec. 31 2012 inched up two per cent to $57.9 million from last year’s $56.8 million.
“I am pleased with the results posted during the first quarter,” stated president and CEO Ray Basler in the company’s quarterly results. “Consolidated year-over-year revenues continued to grow at single digit rates.”
During a conference call discussing the results, Mr. Basler said that recently acquired Primacy Management continues to perform at levels that exceed the initial targets set out at the time of the acquisition.
The company has opened its first Calian-operated clinic at a Loblaws location in Nova Scotia, adding to Primacy’s 112 health clinics across the Loblaw Cos. Ltd. grocery chain.
Calian’s business and technology services division experienced a slight drop in revenues as evidence of federal government spending constraints began to surface. However, several engineering contracts signed last year helped to soften the blow.
Based on current market information, Calian expects revenues for fiscal 2013 to be in the range of $230 million to $250 million, and net earnings in the range of $1.70 to $1.95 per share.
That’s a slight decrease from projections at the end of fiscal 2012, which targeted revenues of $240 million to $260 million with net earnings between $1.80 to $2 per share.
“While the company’s first quarter performance was respectable in the current environment, we remain guarded in relation to our customers’ spending patterns for the balance of the year,” Mr. Basler stated.
During the conference call, he added that the company expects to get “additional market clarity” as the year progresses, particularly in how Calian will be impacted by the federal government’s cost-cutting initiatives.
“With the volatility we’re seeing right now, we’re just being cautious with our expectations,” he said.
Calian provides various services to the federal government, including staffing for the public service and maintenance services for the Department of National Defence.
Mr. Basler made no mention of any additional acquisition targets, as he said the company would be on the lookout for during the previous quarterly results conference call.
Earlier in the day, the company declared a quarterly dividend of $0.28 per share to its shareholders.
Calian ended its 2012 fiscal year on a high note, with an increase in revenues and net earnings as well as landing within its forecasted revenues for the year.
During the fourth quarter of fiscal 2012, the company completed the sale of its U.S. division, with the majority of the proceeds set to be received in the beginning of this fiscal year.
Last July, Calian founder Larry O’Brien announced his retirement and resignation from the board of directors after 30 years with the company.
As of mid-afternoon on Wednesday, Calian’s stock price was valued at $21.50 per share, a 1.6 per cent drop from its price at market close on Tuesday.