COM DEV Announces Amendment of Previously Issued Interim Financial Statements

CAMBRIDGE, ON, Jan. 12, 2016 /CNW/ - COM DEV International Ltd. (TSX:CDV) announced today that in connection with the completion of its financial results for the fiscal year ended October 31, 2015, the Company discovered that previously issued financial results for the interim periods ending on January 31, 2015, April 30, 2015 and July 31, 2015 were misstated.  The nature of the misstatements consisted of misclassifications of certain intercompany foreign exchange gains or loss items between Net Income and Other Comprehensive Income and the misapplication of revenue guidance under International Financial Reporting Standards in respect of a single customer contract.  The foreign exchange misstatements represent the translation of intercompany receivables and loans from GBP and USD to CAD and largely offset one another over the nine months ended July 31, 2015. The misstatements did not have an impact on previously reported cash flows from operating activities for any of the periods impacted. While the impact of these matters is not material to previously reported nine month year to date net income, other comprehensive income and equity attributable to shareholders, the Company has elected to disclose the impact to the discrete quarterly and year to date results within this press release.

For the 3 months ended (Canadian dollars, in thousands):


January 31, 2015

April 30, 2015

July 31, 2015


Previously Reported

Adjustment

Amended

Previously Reported

Adjustment

Amended

Previously Reported

Adjustment

Amended

Revenue

$53,642

($450)

$53,192

$56,355

($5)

$56,350

$58,400

($78)

$58,322

Gross margin

$13,383

($450)

$12,933

$12,208

($5)

$12,203

$16,932

($78)

$16,854

Foreign exchange (gain) loss

$9,810

-

$9,810

($1,178)

($2,132)

($3,310)

$4,461

$1,781

$6,242

Net Income (loss):










- attributable to shareholders

- non-controlling interest

($11,597)

    ($263)

($450)

-

($12,047)

($263)

($3,493)

($232)

$2,127

-

($1,366)

($232)

$2,935

$136

($1,859)

-

$1,076

$136

Net Income (loss)

($11,860)

($450)

($12,310)

($3,725)

$2,127

($1,598)

$3,071

($1,859)

$1,212

Basic & diluted (loss) earnings per share

($0.15)

($0.01)

($0.16)

($0.05)

$0.03

($0.02)

$0.04

($0.02)

$0.02

Other comprehensive income










- foreign currency translation

$3,453

-

$3,453

$488

($2,132)

($1,644)

$4,672

$1,781

$6,453

Comprehensive (loss) income

($9,695)

($450)

($10,145)

($1,958)

($5)

($1,963)

$8,387

($78)

$8,309











Interim consolidated statements of financial position (Canadian dollars, in thousands):


January 31, 2015

April 30, 2015

July 31, 2015

Billings in excess of costs and earnings on contracts in progress

$16,894

$450

$17,344

$17,662

$455

$18,117

$13,175

$533

$13,708

Accumulated other comprehensive income

$4,556

-

$4,556

$6,323

($2,132)

$4,191

$11,639

($351)

$11,288

Deficit

($171,684)

($450)

($172,134)

($177,450)

$1,677

($175,773)

($176,813)

($182)

($176,995)

For the Year to date (Canadian dollars, in thousands):


3 months ended January 31, 2015

6 Months ended April 30, 2015

9 months ended July 31, 2015


Previously Reported

Adjustment

Amended

Previously Reported

Adjustment

Amended

Previously Reported

Adjustment

Amended

Revenue

$53,642

($450)

$53,192

$109,997

($455)

$109,542

$168,397

($533)

$167,864

Gross margin

$13,383

($450)

$12,933

$25,591

($455)

$25,136

$42,523

($533)

$41,990

Foreign exchange (gain) loss

$9,810

-

$9,810

$8,632

($2,132)

$6,500

$13,093

($351)

$12,742

Net Income (loss):










- attributable to shareholders

- non-controlling interest

($11,597)

    ($263)

($450)

-

($12,047)

($263)

($15,090)

($495)

$1,677

-

($13,413)

($495)

($12,155)

($359)

($182)

-

($12,337)

($359)

Net Income (loss)

($11,860)

($450)

($12,310)

($15,585)

$1,677

($13,908)

($12,514)

($182)

($12,696)

Basic & diluted (loss) earnings per share

($0.15)

($0.01)

($0.16)

($0.20)

$0.02

($0.18)

($0.16)

-

($0.16)

Other comprehensive income










- foreign currency translation

$3,453

-

$3,453

$3,960

($2,132)

$1,828

$8,579

($351)

$8,228

Comprehensive (loss) income

($9,695)

($450)

($10,145)

($11,634)

($455)

($12,089)

($3,300)

($533)

($3,833)

Since the misstatements are not material to the previously reported nine month year to date results of operations, the Company will not be re-filing its previously issued interim consolidated condensed financial statements and related management's discussion and analysis and management's certifications of interim filings for the interim periods ending January 31, 2015, April 30, 2015 and July 31, 2015. 

The Company will file its annual audited consolidated financial statements and related management's discussion and analysis, management's certifications of annual filings and the annual information form for the fiscal year ended October 31, 2015 on January 28, 2016 and the filings will reflect the above noted adjustments.  

About COM DEV

COM DEV International Ltd. (www.comdev.ca) is a leading global provider of space hardware and services. The Company has a staff of more than 1,250, annual revenues of over $200 million, and facilities in Canada, the United Kingdom, the United States, India and China. COM DEV designs, manufactures and integrates advanced products, subsystems and microsatellites that are sold to major satellite prime contractors, government agencies and satellite operators, for use in communications, space science, remote sensing and defence applications. The Company has won contracts to supply its equipment on over 950 spacecraft. COM DEV's majority-owned subsidiary, exactEarth Ltd., provides satellite data services for global maritime surveillance.

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: Gary Calhoun, Chief Financial Officer, Tel: (519) 622-2300 ext. 2826, gary.calhoun@comdev.ca; Jeff Codispodi, Director, Investor Relations & Communications, Tel: (519) 622-2300 ext. 2844,jeff.codispodi@comdev.ca

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Com Dev International Ltd.

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