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.
“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.