Buoyed by recent acquisitions and rising demand for its diversified suite of products and services, Calian Group posted another quarter of double-digit growth as it marches toward its goal of hitting a billion dollars in annual revenues.
The Kanata-based company – whose products and services include everything from rapid COVID testing and health-care clinics to satellite antenna systems and military training simulations – reported revenues of $129 million for the quarter ending Dec. 31, up 11 per cent year-over-year.
Calian saw significant growth in three of its four main business segments in the first quarter of its 2022 fiscal year, with sales in its IT and cyber solutions division surging 68 per cent on the strength of deals such as its $83-million pickup of Toronto-based digital health-tech and cybersecurity firm Dapasoft last February.
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That purchase is one of 11 acquisitions Calian has engineered since the start of 2020 as it strives for the magic $1-billion mark in annual revenues.
This week, the firm reiterated it expects to earn revenues of between $550 million and $590 million in fiscal 2022 – an estimate that doesn’t factor in Calian’s recent acquisition of Houston-based IT services provider Computex, a deal that’s expected to close next month.
With the U.S. firm’s $75 million or so in projected revenues added into the mix, Calian should easily surpass the $600-million revenue mark in 2022. The company is projecting an adjusted net profit of between $39.25 million and $42.75 million for the year.
Considering the firm’s total sales barely cracked $300 million just three years ago, Calian seems to be on the fast track to growth that CEO Kevin Ford envisioned when he took on the role in 2015. Should the company hit its targets, 2022 would mark its fifth consecutive year of profitable, double-digit revenue growth.
“We continue to be well-positioned to deliver consistent growth across all our segments,” Ford said in a statement.
Calian’s efforts to diversify its customer base through new acquisitions and new customer wins appear to be paying dividends.
Nearly 14 per cent of its revenues came from European customers in Q1, compared with 11 per cent in the same period a year earlier and just four per cent in the first quarter of 2020.
Meanwhile, Calian’s revenues from non-government clients rose 13 per cent year-over-year. The firm, which once relied heavily on government contracts, now generates roughly half of its revenues from private-sector customers.
Calian posted a net profit of $4.3 million, a 73 per cent increase from the $2.4 million profit it generated a year earlier. The firm signed $185 million worth of new contracts in the quarter, pushing its order backlog to $1.34 billion.
Calian shares were down 20 cents to $56.78 in mid-afternoon trading on the Toronto Stock Exchange.
