CEO Steve Raymond pointed to a cyclical decrease in spending in the Canadian IT sector. In the United States, the factors included the fact that “Investments that have typically required a CIO sign off are to being circulated more broadly within organizations,” Raymond said. Raymond said Covid spurred spending “We couldn’t hire fast enough” and loaded up on subcontractor, but with the revenue decline, Alithya cut to its lowest of use of subs in years. Raymond noted that helps margins as subcontractors are generally a lower-margin workforce. The revenue drop pushed Alithya to a loss of approximately $6.7 million for the most recently ended quarter, up sharply from the loss a year earlier. Revenue fell 8.1 percent year-over-year to about $88.5 million in last year’s corresponding period. Canadian revenue was off roughly $49.6 million, down 9.5 percent, while United States sales were approximately $33.4 million, off 5.9 percent.
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ALITHYA TIGHTENS BELT Featured
Canada-based reseller Alithya sharply cut the number of subcontractors it employs as it tightened spending because of revenue declines in both the United States and Canada.