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CANADA SAVES ALITHYA’S QUARTER Featured

Strong growth in Canada more than offset COVID-19-induced declines in business in Europe and the United States for the third quarter ended September 30. The company, which has Dynamics and Oracle reselling operations, more than halved its loss while posting a 1.5-percent increase in revenue.

That was driven by what executives described as the best gross margins in the history of the company in Canada. The loss fell approximately $1.76 million for the most recently ended period with revenue of approximately $52.2 million. U.S. revenue dropped 9.5 percent to roughly $20.7 million, which was partly offset by revenue from an acquisition. European income fell 24.3 percent to about $1.8 million as COVID-19 impacted one important client. By contract, Canadian revenue of about $29.6 million was up 13.4 precent, including contributions from acquisitions completed last year and what was described at growth at “certain key clients”. CEO Paul Raymond noted during this week’s earnings webcast the U.S. pipeline was good, but slow actions by businesses already in the pipeline contributed to a lower utilization in this country. “The backlog has never been higher in the U.S., he said.  He said there was a “very strong backlog both for the Oracle and Microsoft practice” and expects that business to be completed in the current quarter. Revenue usually falls sequentially during the summer quarter, but there was less of a fall off this year. Alithya continues to protect its workface, which has benefited from government programs in both the United States and Canada. Raymond cited the high demand for qualified labor in this industry. “There isn’t a big flow of people looking for jobs,” he said.

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