A dip in third quarter earnings disappointed Calian Group (TSX:CGY) shareholders on Thursday, though executives say the lull can largely be traced to a gap between major contracts.
Revenues for the three-month period ending June 30 were $67.3 million, a decrease of eight per cent year-over-year. Net profit also dropped by 10 per cent, coming in at $3.5 million for the quarter.
Executives for the Ottawa-based professional services firm were unphased by the low results in a release accompanying the quarterly earnings report. CEO Kevin Ford attributed the losses to an in-between period for the company.
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“Another great quarter with solid project execution for the company despite dealing with the gap in the wind down and ramp up of few major projects,” he said in a statement.
“Third quarter 2016 revenue levels benefited from significant levels of through-put related to a large SED contract in full production. However we continue to track ahead of EBITDA and net profit for the nine-month period compared to fiscal 2016,” said chief financial officer Jacqueline Gauthier in the same release.
Calian’s year-to-date net profit was up eight per cent over the previous nine-month period, coming in at $11.1 million, and the firm started the year with record Q1 revenues of $68.7 million. Analysts also hailed the company’s recent $8.2-million acquisition of a local firm.
Shareholders were unconvinced by the firm’s report, sending Calian’s share price down 6.4 per cent or $1.85 on Thursday.
