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:
Chief Financial Officer
Tel: (519) 622-2300 ext. 2826
Tel: (416) 815-0700 ext. 290