ViXS Issues Restated Financial Statements for Fiscal 3Q 2014
TORONTO, April 9, 2014 /CNW/ - ViXS Systems Inc. (TSX:VXS), a pioneer and leader in media processing solutions, announced today that during the course of its year end audit an issue was discovered with respect to the recognition of non-recurring engineering (NRE) revenue and associated billing of $1.5 million under a previously disclosed development arrangement. ViXS entered into this development project in early September 2013 and the development project was subsequently cancelled after the end of the third quarter of fiscal 2014. Commencing in the third quarter, ViXS applied the percentage-of-completion method for revenue recognition and reported $0.6 million of revenue and recorded deferred revenue of $0.9 million, and an accounts receivable related to a milestone billing in the amount of $1.5 million for this project when it originally filed results for the third quarter of fiscal 2014.
During the course of its year end audit, ViXS determined with further analysis that certain criteria required to satisfy the IFRS requirements for recognition of revenue and the accounts receivable were not present, and ViXS further concluded that it should amend and restate its financial results for the third quarter of fiscal 2014. As a result, the previously issued financial statements, related management's discussion and analysis and management's certifications of interim filings for the three and nine- month periods ended October 31, 2013 should not be relied upon as filed on SEDAR on December 10, 2013.
Independent of the restatement outlined above, the Company also restated the previously reported share-based transaction recovery in the amount of $776 thousand for the nine-month period ended October 31, 2013, which occurred in the Company's quarter ended July 31, 2013, as a result of an error attributable to third-party software used by the Company. Specifically, the error related to the identification of certain limitations of the software in the computation by the Company of its shared-based transaction expense. The correction resulted in a non-cash increase in share based transaction expense of $2.1 million for the nine month ended October 31, 2013.
These corrections did not have an impact on the company's cash flows for the three and nine months ended October 31, 2013. These corrections increased the Company's net loss for the three and nine-month periods ended October 31, 2013 from $4.6 million to $5.2 million and $22.2 million to $24.9 million, respectively. Loss per share increased from $0.85 to $0.94 for the nine month ended October 31, 2013.
The amended and restated financial statements and management's discussion and analysis and refiled certifications on the interim filings as at and for the three and nine-month periods ended October 31, 2013 are available for review under the company's profile on SEDAR at www.sedar.com.
ViXS is currently in its quiet period and plans to discuss this and other financial information when it reports its fiscal fourth quarter and year-end 2014 results after market close on April 15, 2014.
About ViXS Systems Inc.
ViXS is the pioneer and market leader in designing revolutionary media processing semiconductor solutions for the broadcasting and consumer electronics industries, with over 437 patents issued and pending worldwide, numerous industry awards for innovation, and over 29 million media processor shipments to date. ViXS is driving the transition to Ultra HD 4K across the entire content value chain by providing professional and consumer grade chipsets that support the new High Efficiency Video Coding (HEVC) standard up to Main 10 Profile, reducing bandwidth consumption by 50% while providing the depth of color and image clarity needed to take advantage of higher-resolution content. ViXS' XCodePro 3xx family is ideal for Ultra HD 4K infrastructure equipment, and the XCode 6xxx family of system-on-chip (SoC) products achieve unprecedented levels of integration that enable manufacturers to create cost-effective consumer entertainment devices.
ViXS is headquartered in Toronto, Canada with offices in Europe, Asia and North America. VIXS™, the ViXS® logo, XCode®, XCodePro™, XConnex™ and Xtensiv™ are trademarks and/or registered trademarks of ViXS. Other trademarks are the property of their respective owners. For more information on ViXS, visit our website: www.vixs.com.
SOURCE ViXS Systems Inc.For further information: Charlie Glavin, ViXS Systems Inc., T: +1 416 646-2000, firstname.lastname@example.org; Nicole Marchand, Investor Relations, T: +1 (416) 428-3533, Nicole@nm-ir.com