Canada's Alithya Q2 revenue falls more than expected as projects reach maturity
ALYA•Alithya's second-quarter revenue fell 16.8% year over year to C$103.37 million, slightly below the C$103.44 million consensus estimate. Adjusted EPS was C$0.05, while the company cited maturing projects and the absence of a prior-year intellectual property sale for the decline.
1. Quarterly results
Alithya reported second-quarter revenue of C$103.37 million, down 16.8% year over year and slightly below the C$103.44 million analyst consensus. Adjusted net income was C$4.56 million, or C$0.05 per share; the company recorded a net loss of C$25.02 million, or C$0.26 per share.
2. Reasons for decline
The company attributed the revenue decline mainly to client projects reaching maturity and the absence of an intellectual property sale in the prior-year period. Industry Services and Solutions revenue also fell as projects matured and revenues from government contracts and the banking sector declined. Gross margin was lower due to reduced utilization, decreased tax credits and changes in project mix.
3. Outlook and estimates
Alithya did not provide specific guidance for the current quarter or full year. Adjusted EBITDA was C$8.27 million, with an 8.00% margin.
