MDA reports second quarter 2008 results



    RICHMOND, BC, July 30 /CNW/ - MacDonald, Dettwiler and Associates Ltd.
(TSX: MDA), a provider of essential information solutions, today reported
financial results for the three and six months ended June 30, 2008.
    Consolidated revenues for the three months ended June 30, 2008 were
$321 million, up from $312 million for the same period last year. Information
Products revenues were $218 million, consistent with the second quarter last
year. Information Systems revenues increased to $104 million from $93 million
for the same period a year ago. Had average foreign exchange rates remained
comparable to the same period last year, consolidated revenues for the three
months ended June 30, 2008 would have increased by a further $17 million to
$338 million.
    Diluted adjusted earnings per share for the quarter increased to 62 cents
from 55 cents for the same period last year. For comparability, adjusted net
earnings exclude the non-recurring costs related to the proposed divestiture
of the Information Systems business and the non-cash mark-to-market
adjustments on stock-based compensation and related hedges. Diluted earnings
per share for the quarter, excluding only the divestiture-related costs, would
have been 44 cents compared to 45 cents for the same period a year ago.
Diluted earnings per share, after all adjustments, were 33 cents for the
quarter.
    Consolidated revenues for the six months ended June 30, 2008 were
$612 million compared to $618 million for the prior year period. Excluding the
impact of foreign currency fluctuations, consolidated revenues for the first
six months of 2008 would have been $656 million. Information Products revenues
were $412 million compared to $428 million for the same period last year.
Information Systems revenues were $200 million compared to $190 million for
the same period a year ago. Diluted adjusted earnings per share for the six
months ended June 30, 2008 were $1.22 compared to $1.07 for the same period
last year. Excluding only the divestiture-related costs, diluted earnings per
share would have been $1.08 for the year to date compared to 94 cents for the
prior year period. After all adjustments, diluted earnings per share were
97 cents for the six months ended June 30, 2008.

    
    Results of Operations

    -------------------------------------------------------------------------
                              Three months ended         Six months ended
                                   June 30,                  June 30,
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    ($ thousands, except
     per common share
     amounts)

    Consolidated revenues $   321,445  $   311,861  $   611,882  $   618,099
    Earnings before
     income taxes              19,400       26,819       54,181       56,184
    Net earnings               13,412       19,847       39,498       41,195
    Earnings per common
     share:
      Basic                      0.33         0.48         0.98         1.00
      Diluted                    0.33         0.45         0.97         0.94
    Adjusted earnings per
     common share(1):
      Basic                      0.63         0.58         1.24         1.13
      Diluted                    0.62         0.55         1.22         1.07

    Weighted average
     number of common
     shares:
      Basic                40,167,468   41,449,211   40,233,831   41,433,000
      Diluted              40,666,283   43,840,255   40,819,948   43,857,220
    Average exchange
     rates:
      1 US dollar to
       Canadian dollar          1.010        1.098        1.007        1.135
      1 British pound to
       Canadian dollar          1.991        2.182        1.989        2.236
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Adjusted net earnings and adjusted earnings per share are non-GAAP
        financial measures.



    Reconciliation of adjusted net earnings to net earnings

    -------------------------------------------------------------------------
                              Three months ended         Six months ended
                                   June 30,                  June 30,
                                 2008         2007         2008         2007
    -------------------------------------------------------------------------
    ($ thousands)

    Adjusted net earnings      25,281       24,071       49,791       46,760

    Non-recurring costs
     related to proposed
     divestiture, net
     of taxes                  (4,552)           -       (4,552)           -
    Mark-to-market
     adjustments on
     stock-based
     compensation plans,
     net of taxes               3,753          369          437       (3,326)
    Mark-to-market
     adjustments on
     equity hedge
     contracts, net of
     taxes                    (11,070)      (4,593)      (6,178)      (2,239)
    -------------------------------------------------------------------------
    Net earnings               13,412       19,847       39,498       41,195
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    MDA's unaudited consolidated financial statements and management's
discussion and analysis for the three and six months ended June 30, 2008 are
available at: http://www.mdacorporation.com/investor/financial_reports.shtml

    About MDA

    MDA provides advanced information solutions that capture and process vast
amounts of data, produce essential information, and improve the decision
making and operational performance of business and government organizations
worldwide.
    Focused on markets and customers with strong repeat business potential,
MDA delivers a broad spectrum of information solutions, ranging from complex
operational systems, to tailored information services, to electronic
information products.
    MDA employs more than 3,300 people in locations across the United States,
the United Kingdom, and Canada. The Company's common shares trade on the
Toronto Stock Exchange under the symbol TSX:MDA.

    Investor/Analyst Conference Call Today

    MDA President and CEO Daniel Friedmann and Executive Vice President and
CFO Anil Wirasekara will be available on a Conference Call today, July 30,
2008 at 2:30 p.m. Pacific (5:30 p.m. Eastern) to explain the financial results
of the Company and to answer questions.

    To participate, dial 1-888-789-9572 in Canada or the United States
    In Toronto, dial 416-695-7806
    Pass Code 3264162

    The Conference Call will also be Webcast live and archived at:
    http://www.mdacorporation.com/investor/events.shtml

    Telephone replay will be available until August 6, 2008 at the following
    numbers:

    Toll free, International, dial 1-800-408-3053
    In Toronto, dial 416-695-5800
    Pass Code 3264162

    Related Websites:
    www.mdacorporation.com

    Forward-Looking Statements
    --------------------------
    This release contains forward-looking statements and information, which
reflect the current view of MacDonald, Dettwiler and Associates Ltd. with
respect to future events and financial performance. Any such forward-looking
statements are subject to risks and uncertainties and MDA's actual results of
operations could differ materially from historical results or current
expectations. Additional information on these and other potential factors that
could affect MDA's financial results are detailed in documents filed from time
to time with the applicable Canadian securities regulatory authorities.

    The Toronto Stock Exchange has neither approved nor disapproved the form
    or content of this release.

    %SEDAR: 00014148E




For further information:

For further information: Wendy Keyzer, MDA External Relations, (604)
231-2743, wendy@mdacorporation.com


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