Calian Technology Reports Restated Quarterly Results Reflecting Changes in Income Tax Rates.Business Editors KANATA, Ontario--(BUSINESS WIRE)--Oct. 22, 2001 Company Will Release Fourth Quarter Results by November November: see month. 21 Calian Technology Ltd. (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". .) today announced restated unaudited quarterly results for fiscal 2001 to record reductions in future income tax rates which had not been reflected previously in the Company's financial statements. The Company should have begun to consider the new future income tax rates during its first fiscal quarter. The new income tax rates, which are expected to decrease from over 44% in Fiscal 2001 to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 33% by Fiscal 2005, include all substantially enacted rates that are presently applicable to the Company. The effect of the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. is a reduction of $2.0 million in the book value of the future income tax assets carried on the Company's balance sheet at June June: see month. 30, 2001, and an equivalent charge to net earnings as part of the future income tax provision for the nine months then ended, as described below. Of this amount, $0.9 million relates to continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , while $1.1 million relates to the discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . This restatement has no impact on the Company's previously reported pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta profitability or on other operational measures. After using the new tax rates in the attached restated financial statements, the loss from continuing operations in the third quarter ended June 30, 2001 was $0.5 million or $(0.05) per share, compared with a loss of $0.1 million or $(0.01) per share as previously reported. For the year to date, the loss from continuing operations was $0.4 million or $(0.04) per share, as compared with earnings as previously reported of $0.5 million or $0.05 per share basic and $0.04 fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. . The net loss in the third quarter was $12.2 million or $(1.25) per share basic and fully diluted, compared with a net loss of $11.1 million or $(1.14) per share as previously reported. For the year to date, the net loss was $14.8 million or $(1.51) per share basic and fully diluted, compared with $12.8 million or $(1.31) per share as previously reported. There was no significant change to the results for the second fiscal quarter. In the first fiscal quarter, the net loss was $2.7 million or $(0.28) per share basic and fully diluted, compared with a loss of $1.9 million or $(0.19) per share as previously reported. Calian expects to announce its fourth quarter results by November 21, 2001, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with its normal timetable “Schedule” redirects here. For other uses, see Schedule (disambiguation). A timetable or schedule is an organized list or schedule, usually set out in tabular form, providing information about a series of arranged events: in particular, the time at which . About Calian: Calian Technology Ltd. (TSE:CTY) sells systems integration and staffing/outsourcing services to industry and government.
CALIAN TECHNOLOGY LTD.
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(dollars in thousands except per share data)
(Unaudited)
Three months ended Year to Date
June 30 June 30
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2001 2000 2001 2000
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(Restated - (Restated -
Note 8) Note 8)
Revenues $29,166 $31,261 $90,894 $85,516
Cost of revenues 24,153 24,508 74,368 68,401
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Gross profit 5,013 6,753 16,526 17,115
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Selling and marketing 1,377 1,444 4,140 3,807
General and
administration 2,390 2,037 7,159 5,150
Facilities 722 607 2,128 1,720
Amortization of capital
assets 462 423 1,314 1,094
Special charge (income)
(Note 5) - (201) 331 (201)
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4,951 4,310 15,072 11,570
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Earnings before interest,
taxes and amortization
of goodwill 62 2,443 1,454 5,545
Interest income, net 20 37 87 244
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Earnings before taxes and
amortization of goodwill 82 2,480 1,541 5,789
Income taxes - current 66 35 84 86
Income taxes - future 474 - 1,694 -
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Earnings (loss) before
amortization of goodwill (458) 2,445 (237) 5,703
Amortization of goodwill 58 50 177 165
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Earnings (loss) from
continuing operations (516) 2,395 (414) 5,538
Loss on discontinued
operation (net of income
taxes) (Note 6) (341) (1,064) (3,035) (1,874)
Loss on disposal of
discontinued operation
(net of income taxes)
(Note 6) (11,341) - (11,341) -
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NET EARNINGS (LOSS) $(12,198) $1,331 $(14,790) $3,664
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Retained earnings,
beginning of period $21,899 $14,380 $24,491 $12,047
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Retained earnings,
end of period $9,701 $15,711 $9,701 $15,711
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Earnings (loss) from continuing operations:
Basic $(0.05) $0.25 $(0.04) $0.60
Fully Diluted $(0.05) $0.23 $(0.04) $0.55
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Net earnings (loss) per share:
Basic $(1.25) $0.14 $(1.51) $0.40
Fully Diluted $(1.25) $0.13 $(1.51) $0.37
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Weighted number of shares:
Basic 9,774,701 9,650,051 9,769,316 9,217,941
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Fully Diluted 10,591,685 10,570,483 10,695,160 10,258,708
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CALIAN TECHNOLOGY LTD.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
June 30, September 30,
2001 2000
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(Unaudited,
Restated - Note 8)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $12,081 $10,576
Accounts receivable 19,662 23,121
Unbilled accounts receivable 2,040 4,853
Prepaid expenses and other 919 1,336
Note receivable 100 -
Future income taxes 2,879 3,276
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37,681 43,162
GOODWILL 3,541 11,686
CAPITAL ASSETS 5,497 9,182
INVESTMENT TAX CREDITS RECOVERABLE 2,243 2,243
FUTURE INCOME TAXES 5,729 3,724
NOTES RECEIVABLE 350 -
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$55,041 $69,997
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
liabilities 15,623 $11,586
Unearned contract revenue 11,136 14,947
Note payable - 334
Current portion of long-term debt 296 376
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27,055 27,243
LONG-TERM DEBT 341 515
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27,396 27,758
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CONTINGENCIES (Note 7)
SHAREHOLDERS' EQUITY
Share capital 17,944 17,748
Retained earnings 9,701 24,491
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27,645 42,239
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$55,041 $69,997
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CALIAN TECHNOLOGY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(Unaudited)
Three months ended Year to Date
June 30 June 30
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2001 2000 2001 2000
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(Restated - (Restated -
Note 8) Note 8)
CASH FLOWS FROM (USED IN)
OPERATING ACTIVITIES
Net earnings (loss) $(12,198) $1,331 $(14,790) $3,664
Items not affecting
cash:
Deferred lease
inducements (4) 23 (10) 69
Amortization 689 666 2,265 1,729
Loss on disposal of
assets 2,749 - 2,749 -
Write-down of goodwill
relating to eServices
(Note 6) 7,485 - 7,485 -
Future Income Taxes (1,574) - (1,608) -
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(2,853) 2,020 (3,909) 5,462
Change in non-cash
working capital
Accounts receivable 3,399 806 3,467 (4,003)
Unbilled accounts
receivable 1,922 (976) 2,813 (1,803)
Prepaid expenses
and other 66 (113) 417 459
Accounts payable and
accrued liabilities 161 558 4,037 (1,737)
Unearned contract
revenue (1,027) (1,348) (3,812) 2,677
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1,668 947 3,013 1,055
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CASH FLOWS FROM (USED IN)
FINANCING ACTIVITIES
Repayment of debt (54) (235) (578) (1,724)
Issuance of common shares - 82 196 633
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(54) (153) (382) (1,091)
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CASH FLOWS FROM (USED IN)
INVESTING ACTIVITIES
Acquisition of capital
assets (243) (1,184) (1,135) (3,242)
Proceeds on sale of assets 9 9 -
Business acquisitions - (1,632) - (2,789)
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(234) (2,816) (1,126) (6,031)
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NET CASH INFLOW (OUTFLOW) 1,380 (2,022) 1,505 (6,067)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 10,701 15,647 10,576 19,692
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CASH AND CASH EQUIVALENTS,
END OF PERIOD $12,081 $13,625 $12,081 $13,625
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CALIAN TECHNOLOGY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the periods ended June 30, 2001 and 2000
(dollars in thousands)
(Unaudited. Restated - See Note 8)
1. ACCOUNTING POLICIES
These interim consolidated financial statements have been prepared
in accordance with Canadian generally accepted accounting
principles except that these interim consolidated financial
statements do not provide full note disclosure.
These interim consolidated financial statements have been prepared
using the same accounting policies used in the preparation of the
audited annual consolidated financial statements, and should be
read in conjunction with those audited annual consolidated
financial statements.
2. ACCOUNTING ESTIMATES
For the period ended June 30, 2001 there have been no material
changes in estimates of amounts reported in prior interim periods
or of amounts related to prior fiscal years.
3. SEASONALITY
The Company's operations are not subject to significant
cyclicality. However, given the nature of its operations, the
Company's revenues may be affected by vacation or holiday
schedules.
4. SEGMENTED INFORMATION
Operating segments are identified as components of an enterprise
about which separate discrete financial information is available
for evaluation by the chief operating decision maker, regarding how
to allocate resources and assess performance. The Company's chief
operating decision maker is the Chief Executive Officer.
During the fist two quarters of fiscal 2001 the Company operated in
three reportable segments described below, defined by their primary
type of service offering, namely Systems Engineering, Resourcing
and eServices.
-- Systems Engineering involves planning, designing and implementing
solutions that meet a customer's specific business and technical
needs, primarily in the satellite communications sector.
-- Resourcing involves both short and long-term placements of
personnel to augment customers' workforces (Staffing) as well as
the long-term management of projects, facilities and customer
business processes (Outsourcing).
-- eServices includes eLearning (strategy development, learning
management systems and services, training delivery), content
management, systems integration, and management consulting.
During the third quarter of fiscal 2001, the Company discontinued
its operations of the eServices business (see Note 6).
In fiscal 2000 the Company operated in two reportable segments,
namely Systems Engineering and Professional Services. During the
first fiscal quarter of 2001 the Company's management structure
changed to separate Professional Services into Resourcing and
eServices.
The Company evaluates performance and allocates resources based on
earnings before interest and income taxes. The company does not
segregate assets and other balance sheet accounts between
Resourcing, Corporate services and eServices. The accounting
policies of the segments are the same as those described in the
significant accounting policies note in the audited annual
consolidated financial statements.
Three months ended June 30, 2001
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Systems Corporate and
Engineering Resourcing Other (a) Total
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(Restated) (Restated)
Revenue $9,342 $19,824 $29,166
Earnings before
interest and income
taxes 828 77 (901) 4
Interest income (expense) 98 (78) 20
Income taxes 540
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Earnings (loss) from
continuing operations $(516)
Discontinued operation (11,682)
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Net earnings (loss) (12,198)
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Total assets other
than cash $10,015 $32,945 $42,960
Cash 12,081 12,081
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Total assets $55,041
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Three months ended June 30, 2000
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Systems Corporate and
Engineering Resourcing Other (a)(b) Total
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Revenue $14,119 $17,142 $31,261
Earnings before interest
and income taxes 1,610 1,472 (689) 2,393
Interest income (expense) 83 (46) 37
Income taxes 35
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Earnings (loss) from
continuing operations $2,395
Discontinued operation (1,064)
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Net earnings (loss) $1,331
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Total assets other
than cash $14,453 $37,817 $52,270
Cash 13,625 13,625
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Total Assets $65,895
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Nine months ended June 30, 2001
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Systems Corporate and
Engineering Resourcing Other (a) Total
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(Restated) (Restated)
Revenue $30,054 $60,840 $90,824
Earnings before
interest and income
taxes 2,858 1,162 (2,743) 1,277
Interest income
(expense) 201 (114) 87
Income taxes 1,778
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Earnings (loss) from
continuing operations $(414)
Discontinued operation (14,376)
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Net earnings (loss) $(14,790)
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Total assets other
than cash $10,015 $32,945 $42,960
12,081 12,081
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Total assets $55,041
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Nine months ended June 30, 2000
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Systems Corporate and
Engineering Resourcing Other (a)(b) Total
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Revenue $37,818 $47,698 $85,516
Earnings before
interest and income
taxes 3,594 3,639 (1,853) 5,380
Interest income (expense) 435 (191) 244
Income taxes 86
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Earnings (loss) from
continuing operations $5,538
Discontinued operation (1,874)
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Net earnings (loss) $3,664
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Total assets other
than cash $14,453 $37,817 $52,270
Cash 13,625 13,625
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Total assets $65,895
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(a) Includes corporate services costs and other costs not
appropriate to allocate to the operating segments.
(b) Total assets include the assets of the eServices business.
5. SPECIAL CHARGE (INCOME)
The following were reflected in the consolidated statement of
earnings for the year-to-date ended June 30, 2001 and 2000:
Year to Date June 30
2001 2000
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Gain on sale of shares of Skywave
Mobile Communications Inc. $- $(490)
Legal, settlement and other costs 331 289
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$331 $(201)
6. DISCONTINUED OPERATION
On May 16, 2001 the Company's Board of Directors approved a formal
plan to dispose of all of the assets of the eServices business. The
approved plan consists of rationalizing the eServices operations by
making adjustments to the workforce and facilities commensurate
with the size of the business and selling the resized business. The
effective date of disposal is June 30, 2001.
The Company has recorded a loss on disposal of the eServices
business of $13,287 before tax and $11,341 after tax (restated),
including rationalization costs and operating losses subsequent to
May 16, 2001. These amounts (pre-tax) are as follows:
(i) Rationalization costs:
Workforce reduction $731
Legal, consulting and other 852
Provision for excess facilities 213
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$1,796
(ii) Loss on disposal of assets:
Goodwill $7,485
Capital assets 2,755
Other assets 707
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$10,947
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(iii) Loss from operations from May 16 to June 30, 2001 $544
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If there were to be additional consideration payable for the shares
of PPI Canada Ltd. as described in Note 7, this would be accounted
for as part of the discontinued operation.
The revenues of the eServices business for the quarter and the
nine-month period ended June 30, 2001 were $1,730 and $6,264
respectively. The net loss before tax of eServices for the period
and year-to-date (to May 16, 2001) was $536 ($341 after tax,
restated) and $4,434 ($3,035 after tax, restated).
The carrying value of the remaining assets and liabilities of the
discontinued operation as at June 30, 2001 are as follows:
Trade receivables $726
Accounts payable and accrued liabilities (1,978)
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$(1,252)
7. CONTINGENCIES
During the first quarter of fiscal year 2001 ended December 31,
2000, the Company settled two claims with respect to former
employees, which settlements are included as part of the special
charge described in Note 5.
As described in Note 14 of the audited consolidated financial
statements, during its fiscal year 2000 the Company acquired PPI
Canada Ltd. (PPI). In the event it is determined that the acquired
business achieved a certain level of profitability (as defined)
during the twelve months following the acquisition, additional cash
consideration for the shares of PPI will become payable. The
maximum amount of such an additional payment is $1,600. In June
2001 the Company informed the selling shareholders of PPI that the
acquired business' profitability (as defined) was lower than the
earnings threshold specified, and that accordingly, no additional
payment for the PPI shares was required to be made. In July 2001
the selling shareholders of PPI filed a claim against the Company,
claiming the additional payment of $1,600 and further damages in
excess of $2,000. The Company intends to vigorously defend the
action. The amount of additional consideration for the shares, if
any, is not determinable at this time.
The Company is a party to several other claims, which are being
contested. The potential outcomes of these matters are not
determinable at this time. The Company intends to defend these
actions, and management believes that the resolution of these
matters will not have a material adverse effect on Calian's
financial condition.
8. RESTATEMENT OF INCOME TAXES
As described in Note 8 in the audited consolidated financial
statements, the balances of Future Income Tax Assets (current and
long-term) represent the future benefits of temporary differences
between the tax and accounting bases of assets and liabilities,
consisting mainly of future tax deductions, research and
development expenditures, and losses available to be carried
forward for tax purposes to the extent that they are likely to be
realized.
These consolidated financial statements for the quarter ended June
30, 2001 reflect effective income tax rates that are lower than
those used previously in the Company's accounting. The new tax
rates, which are expected to decrease from 44% in Fiscal 2001 to
approximately 33% by Fiscal 2005, include all substantially enacted
rates that are presently applicable to the Company.
The Company should have begun to apply the new future income tax
rates during its first fiscal quarter of 2001. As a result, the
following changes to previously reported amounts are summarized
below:
Quarter ended, Year to date
June 30, 2001 June 30, 2001
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Previously Previously
Restated Reported Restated Reported
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Balance sheet:
Future income taxes,
current 2,879 3,073 2,879 3,073
Future income taxes,
non-current 5,729 7,487 5,729 7,487
Retained earnings, end
of period 9,701 11,653 9,701 11,653
Statement of earnings:
Provision for income
taxes - future 474 65 1,694 802
Earnings (loss) from
continuing operations (516) (107) (414) 478
Net earnings (loss) (12,198) (11,135) (14,790) (12,838)
Net earnings per share:
Earnings (loss) from
continuing operations
Basic (0.05) (0.01) (0.04) 0.05
Fully Diluted (0.05) (0.01) (0.04) 0.04
Net earnings (loss) per
share
Basic (1.25) (1.14) (1.51) (1.31)
Fully Diluted (1.25) (1.14) (1.51) (1.31)
Quarter ended, Quarter ended,
March 31, 2001 December 31, 2000
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Previously Previously
Restated Reported Restated Reported
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Balance sheet:
Future income taxes,
current 3,487 3,652 3,631 3,758
Future income taxes,
non-current 3,547 4,271 3,739 4,469
Retained earnings, end
of period 21,899 22,788 21,746 22,603
Statement of earnings:
Provision for (recovery
of) income taxes -
future 335 303 (369) (1,226)
Net earnings (loss) 153 185 (2,745) (1,888)
Net earnings per share:
Net earnings (loss) per
share
Basic 0.02 0.02 (0.28) (0.19)
Fully Diluted 0.02 0.02 (0.28) (0.19)
9. COMPARATIVE FIGURES
Certain comparative figures in the consolidated financial
statements and notes to the consolidated financial statements have
been reclassified to conform to the current period's presentation.
Restated Management Discussion and Analysis (MD&A) of the third fiscal quarter: Results of operations: As discussed below, during the third fiscal quarter the Company decided to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose its assets employed in the eServices business. Consequently, the revenues and expenses of that business are grouped as Earnings (loss) on discontinued operation, and the loss on disposal of the business has been separately classified. All other amounts shown in the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statement of earnings relate to the other segments of the Company as described in Note 4. For the third quarter of fiscal 2001 revenues (excluding eServices) were $29.2 million compared to $31.3 million in the third quarter of fiscal 2000, representing a decrease of 6.7%. The Resourcing (Staffing/Outsourcing) segment reported growth with revenues increasing to $19.8 million from $17.1 million. System Engineering's revenues were $9.3 million in the quarter, down from $14.1 million in the third quarter of last year due to lower levels of materials on projects during the third quarter of the current year. Gross profit was 17.2% in the third quarter of 2001 as compared to 21.6% in the comparable quarter a year ago due to higher volumes on several contracts with lower margins. Selling and marketing, general and administration, facilities and amortization of capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) totaled $5 million or 17% of revenues in the third quarter of 2001. This compares to $4.5 million or 14.4% of revenues in the third quarter of 2000. The increase of $0.5 million is related largely to infrastructure costs incurred to support the expected growth of the Company. Facilities costs and amortization expense are higher in fiscal 2001 because the Company expanded into additional space part way through 2000 and had a relatively high level of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. last year, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its new ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. system and leaseholds. Income taxes - Effective with the fourth quarter of fiscal 2000, Calian adopted the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Institute of Chartered Accountants' new rules in accounting for income taxes, which resulted in the Company recognizing the future benefit of investment tax credits created in prior years, of research expenditures not yet deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. , and prior years' net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. not yet claimed. Consequently Calian now reports its results on a fully taxed basis, although cash taxes may not be payable for several years. In the third quarter of fiscal 2000 the Company's tax rate was effectively zero, other than for income taxes incurred in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . During the first three quarters of fiscal year 2001, Federal and Provincial Provincial has several meanings and may refer to:
v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. , with reductions announced for years up to 2005. These tax rate changes have resulted in increases in the provision for income taxes on the statement of earnings as well as reductions to the future income taxes assets on the balance sheet. As a result of the foregoing, the Company incurred a loss from continuing operations of $0.5 million or $(0.05) per share basic and fully diluted in the third quarter of fiscal 2001 compared with a profit of $2.4 million or $0.25 per share basic and $0.23 per share fully diluted in the same quarter for the prior year, when a provision for income taxes was not taken. Discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. - On May 16, 2001, the Company's Board of Directors approved a formal plan to dispose of all of the assets of the eServices business. The approved plan consisted of rationalizing the eServices operations by making adjustments to the workforce and facilities commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the size of the business and selling the resized business. The effective date of disposal was June 30, 2001. The Company incurred a loss of $0.5 million ($0.3 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) on the discontinued operation from April 1 to May 16, 2001, whereas it lost $1.1 million (on both a pre-tax and after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. ) in the third fiscal quarter during the year prior. The Company incurred a loss on disposal of the eServices business of $13.3 million before tax and $11.3 million after tax. The pre-tax loss of $13.3 million includes the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of goodwill associated with acquisitions in eServices ($7.5 million), the loss on disposal of capital and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. ($3.5 million), rationalization rationalization, in psychology: see defense mechanism. costs of $1.8 million, and operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. subsequent to May 16, 2001 of $0.5 million. The Company has recorded a net loss of $12.2 million or $(1.25) per share basic and fully diluted in the third quarter of fiscal 2001, compared with net earnings of $1.3 million or $0.14 per share basic and $0.13 per share fully diluted in the same quarter the previous year, when a tax provision was not taken. For the fiscal year to date, consolidated revenues in fiscal 2001 have been $90.9 million compared to $85.5 million for the first nine months of fiscal 2000, representing an increase of 6.3%. Growth in revenues was strongest in the Resourcing (Staffing/Outsourcing) segment, where revenues increased to $60.8 million from $47.9 million. System Engineering's revenues have been $30 million in the current year to date, compared to $37.8 million recorded last year. Gross profit was 18.2% during the first nine months compared to 20% in the equivalent period last fiscal year. Selling and marketing, general and administration, facilities and amortization of capital assets totaled $14.7 million or 16.2% of revenues in the first nine months of 2001. This compares to $11.8 million or 13.8% of revenues in the first nine months of 2000. The Company incurred a loss on continuing operations of $0.4 million or $(0.04) per share basic fully diluted in the first three quarters of fiscal 2001, as compared to a profit of $5.5 million or $0.60 per share basic and $0.55 per share fully diluted in the same period last year, when a tax provision was not taken. The Company recorded a loss of $4.4 million ($3.0 million after-tax) on its operations of eServices for the year to date until May 16, 2001 as compared to a loss of $1.9 million (both on a pre-tax and after-tax basis) for the nine months ended June 30, 2000. The Company has recorded a net loss of $14.8 million or ($1.51) per share basic and fully diluted in the year to date period ending June 30, 2001, compared with net earnings of $3.7 million or $0.40 per share basic and $0.37 per share fully diluted for the same period the previous year. Financial Condition and Cash Flows Calian maintains a strong balance sheet and cash position which, together with bank lines, are sufficient to support the Company's operations for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. The Company has a $10 million credit facility with a Canadian chartered bank Chartered Bank A financial institution whose primary roles are to accept and safeguard monetary deposits from individuals and organizations, and to lend money out. The details vary from country to country, but usually a chartered bank in operation has obtained government permission , all of which was available at June 30, 2001. The Company's cash position at the end of the quarter amounted to $12.1 million, compared with $10.6 million at September September: see month. 30, 2000. During the third quarter of 2001, cash provided by operating activities, including changes in working capital, was $1.7 million, as compared to $0.9 million in the third quarter a year ago. This variation reflects primarily the decrease in profitability compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. by a reduction in billed and unbilled un·billed adj. 1. Not having been billed or charged for: unbilled medical charges. 2. Appearing, as in a movie, without being credited: an unbilled walk-on. accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . During the third quarter of 2001, $0.2 million was spent to acquire capital assets ($1.2 million last year). During the third quarter of fiscal 2000, $1.6 million was used to acquire PPI (1) (Pixels Per Inch) The measurement of the resolution of a monitor or scanner. For example, a monitor that is 16 inches wide and displays 1600 pixels across its width would have a resolution of 100 ppi (1600 divided by 16). Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of Ltd. Net cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. for the third quarter of fiscal 2001 was a positive $1.4 million, whereas it was negative $2 million during the third quarter of fiscal 2000. For the first three quarters of fiscal 2001, cash provided by operating activities, including changes in working capital, was $3 million, as compared to $1.1 million a year ago. This variation reflects primarily the decrease in profitability compensated by a decrease in billed and unbilled accounts receivable and an increase in accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. . During the first nine months of 2001, $1.5 million was spent in financing and investing activities. During the first nine months of fiscal 2000, the Company invested $6 million in capital assets and in business acquisitions, while repaying $1.7 million of debt and issuing $.6 million in common shares. Net cash flow for the first three quarters of fiscal 2001 has been positive by $1.5 million, whereas it was negative $6.1 million during the first nine months of fiscal 2000. The foregoing discussion and analysis should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the restated financial statements for the third quarter of fiscal 2001 and 2000, and with the Management Discussion and Analysis in the fiscal 2000 annual report, including the section on risks and uncertainties. |
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