Calian Technology Ltd. reports first quarter results increased investment in R&D targets future data messaging opportunities worldwide.KANATA, Ontario--(BUSINESS WIRE)--Feb. 16, 1996--CALIAN TECHNOLOGY INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CTY CTY - /sit'ee/ or /C-T-Y/ [MIT] The terminal physically associated with a computer's system console. The term is a contraction of "Console tty", that is, "Console TeleTYpe". ) Increased research and development spending by Calian Technology Ltd. during the quarter ended December December: see month. 31, 1995 resulted in net earnings for the quarter of $244,000 compared to $558,000 for the first quarter of fiscal 1995. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter was $0.03 compared to $0.06 for the first quarter of the previous year. The earnings for the quarter were primarily affected by an increase of $200,000 in research and development expenses over the same quarter last year. "This increased investment in R&D, which will continue into our second quarter, is an important and strategic application of our technical and financial resources," said Larry O'Brien
Lawrence "Larry" Francis O'Brien, Jr. (July 7 1917 – September 28, 1990) was one of the United States Democratic Party's leading electoral strategists when, for more than two , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "This development, along with our growing relationship with ICO ICO Icon (File Name Extension) ICO In Case Of ICO Information Commissioner's Office (UK) ICO Instituto de Crédito Oficial (Spain: Official Credit Institute) (Inmarsat Inmarsat: see Communications Satellite Corporation; communications satellite. (Inmarsat plc, London, www.inmarsat.com) A satellite communications company that provides voice and data services to the maritime, transportation and aeronautics markets as well ), will strengthen Calian's position as a leading provider of hub systems and terminal products for the satellite data messaging market worldwide." Revenue for the quarter was $11.5 million, down from $12.9 million in the first quarter of fiscal 1995, reflecting the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the systems business. Revenue earned on ACSE ACSE - Association Control Service Element systems was down in the quarter compared to the same quarter last year. Customer orders for add-on A purchase of additional goods before payment is made for goods already purchased. An add-on may be covered by a clause in an installment payment contract that allows the seller to hold a security interest in the earlier goods until full payment is made on the later goods. features for ACSE systems continue to grow, with $3 million received to date. Discussions continue with these customers for additional features to improve systems capacity and capability. Gross profit for the quarter expressed as a percentage of sales was 8.0 percent compared to 9.6 percent in the first quarter of the prior year. R&D expenses, which are included in cost of sales, accounted for the reduction in gross profit. The Company recognized the benefit of investment tax credits related to research and development undertaken in prior years in order to utilize such investment tax credits before they expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. . These investment tax credits fully offset federal income taxes payable and did not have an effect on net earnings for the quarter. Calian and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. SED Systems SED Systems is a communications networking industry supplying both systems and services. Originating in 1965, SED is located in the Innovation Place Research Park on the University of Saskatchewan campus. As a division of CALIAN Ltd. Inc. of Saskatoon Saskatoon (săskət  n`), city (1991 pop. 186,058), S central Sask., Canada, on the South Saskatchewan River. design, manufacture and integrate electronic systems with applications
in the satellite communication, space and defence markets and provide
related technical outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. services. In addition, the Company is
developing data messaging terminals for use in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and around
the world. The Company trades on The Toronto Stock Exchange Toronto Stock Exchange (TSE)Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol CTY. -0-
CALIAN TECHNOLOGY LTD.
CONSOLIDATED STATEMENT OF EARNINGS
(dollars in thousands except per share data)
(unaudited)
Three months ended
December 31 December 31
1995 1994
Sales $11,523 $12,962
Cost of sales 10,593 11,712
------- -------
Gross profit 930 1,250
Selling, administration and
other expenses (861) (795)
Investment tax credits related to
prior years' research and development 62 -
------- -------
Earnings from operations 131 455
Interest income, net 180 113
------- -------
Earnings before income tax 311 568
Income tax expense 67 10
------- -------
NET EARNINGS $ 244 $ 558
------- -------
------- -------
Earnings per share:
Basic $ 0.03 $ 0.07
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------- -------
Fully diluted $ 0.03 $ 0.06
------- -------
------- -------
Weighted average number of shares
outstanding
Basic 8,898,666 8,476,054
--------- ---------
--------- ---------
Fully diluted 9,543,666 9,318,610
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CALIAN TECHNOLOGY LTD.
CONSOLIDATED BALANCE SHEET
(dollars in thousands)
December 31 September 30
1995 1995
(unaudited)
CURRENT ASSETS
Cash and short-term investments $13,604 $11,370
Accounts receivable 8,827 10,095
Unbilled accounts receivable 6,183 7,202
Inventory 518 248
Prepaid expenses and other 957 698
------- -------
30,089 29,613
GOODWILL 1,157 1,198 DEFERRED DEVELOPMENT COSTS 322 -
FIXED ASSETS 4,267 4,194
------- -------
$35,835 $35,005
------- -------
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CURRENT LIABILITIES
Accounts payable and
accrued liabilities $ 8,037 $ 7,124
Income taxes payable 10 12
Unearned contract revenue 1,162 1,627
Current portion of long-term debt 217 159
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9,426 8,922
LONG-TERM DEBT 579 637
------- -------
10,005 9,559
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SHAREHOLDERS' EQUITY
Share capital 13,747 13,607
Retained earnings 12,083 11,839
------- -------
25,830 25,446
------- -------
$35,835 $35,005
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CALIAN TECHNOLOGY LTD.
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
(dollars in thousands)
(unaudited)
Three months ended
December 31 December 31
1995 1994
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES OPERATING Net earnings $ 244 $ 558
Item not affecting cash
Depreciation and amortization 317 298
------- -------
561 856
Change in non-cash operating
working capital items 2,204 (2,223)
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2,765 (1,367)
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FINANCING
Change in long-term debt, net - (327)
Proceeds on issuance of common shares 140 90
------- -------
140 (237)
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INVESTING
Investment in deferred development costs (322) -
Acquisition of fixed assets (349) (228)
------- -------
(671) (228)
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NET CASH INFLOW (OUTFLOW) 2,234 (1,832)
CASH POSITION, BEGINNING OF PERIOD 11,370 11,314
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CASH POSITION, END OF PERIOD $13,604 $ 9,482
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CONTACT: Calian Technology Ltd. Peter Rose Director of Corporate Finance (613) 599-7200 (613) 592-7771 (Fax) |
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