COM DEV Completes Final Challenging Program
CAMBRIDGE, ON, Dec. 20, 2012 /CNW/ - COM DEV International Ltd. (TSX: CDV), a leading manufacturer of space hardware subsystems, today announced that the fifth and last of the previously disclosed programs that have had a negative impact on the Company's financial results has been shipped. These programs were executed under fixed-cost contracts and experienced non-recoverable cost escalations.
"We are very pleased to have completed all five of these programs to the satisfaction of our customers," stated Gary Calhoun, CFO of COM DEV International. "Since 2009, the impact of these programs to our bottom line was over $25 million. We expect no noticeable impact from this last program in our recently completed fourth quarter."
"Completing these programs was a significant focus for me in my first two years as CEO," said Michael Pley, CEO of COM DEV. "As well as the effect on our financial results, valuable capacity was tied up that can now be deployed on profitable projects."
"We have learned some valuable lessons as an organization and have implemented processes to minimize the chance of reoccurrence," Michael Pley added. "We will continue to apply the financial and production discipline that has resulted in the positive results we have reported in recent quarters, and profitably grow the Company."
About COM DEV
COM DEV International Ltd. (www.comdevintl.com) is a leading global designer and manufacturer of space hardware subsystems. With facilities in Canada, the United Kingdom and the United States, COM DEV manufactures advanced products and subsystems that are sold to major satellite prime contractors for use in communications, space science, remote sensing and military satellites.
This news release may contain certain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from results indicated in any forward-looking statements. The Company cautions that, among other things, in view of the rapid changes in communications markets and technologies, and other risks including the cost and market acceptance of the Company's new products, the level of individual customer procurements and competitive product offerings and pricing, and general economic circumstances, the Company's business prospects may be materially different from forward-looking statements made by the Company.
The triangular logo and the word COM DEV are each registered trademarks and the property of COM DEV Ltd. All rights reserved.
SOURCE: Com Dev International Ltd.For further information:
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