Weeks after predicting it would take a revenue hit of up to $8 million from mid-March to early May due to the economic impact of the COVID-19 lockdown, Kanata-based Calian Group has landed a major contract win.
Calian (TSX:CGY) says it’s inked a deal to provide training and other services to the Canadian Forces School of Aerospace Technology and Engineering. The contract is for two years, with two additional options of two years each. The total value of the deal is expected to be $54 million over the next six years.
Calian also won the school’s previous training support contract in 2016. The new deal is expected to start on Aug. 1.
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Based at Canadian Forces Base Borden, the school offers aerospace, technical and engineering training and provides the Royal Canadian Air Force with qualified aircraft maintenance personnel. Under the contract, Calian will deliver training and other services, including course review, design and delivery and technology support.
In a statement, Calian CEO Kevin Ford called the new deal “another illustration of the Calian team’s track record delivering high-quality services to meet our customer’s needs.”
It marks another high-profile win for Calian and a welcome bit of good news after the company said in late March it was expecting a revenue shortfall of between $7 million and $8 million over a six-week span as customers cut back on spending in the wake of the COVID-19 outbreak.
Calian executives said at the time they believed at least $3 million of that total would be recovered later in the fiscal year once the crisis settled down. The company, which is slated to report its second-quarter earnings next week, said it still expected to reach its fiscal 2020 revenue targets of between $380 million and $410 million.
