CAMBRIDGE, ON, Oct. 2, 2012 /CNW/ - COM DEV International Ltd. (TSX:CDV), a leading manufacturer of space hardware subsystems, today announced a restructuring and downsizing of its Canadian government space division, COM DEV Canada, which is headquartered in Ottawa with additional facilities in Cambridge, Ontario. Thirty-one employees have been provided with layoff notices, and the total cost associated with the restructuring is estimated to be approximately $2 million. Ten more employees will be transferred to open positions in other divisions of COM DEV.
"As Canada's leading supplier of instruments and payloads for government space missions, the lack of new program opportunities from the Canadian Space Agency in the foreseeable future has forced us to take action," said Michael Pley, CEO of COM DEV. "The funding situation on the CSA's Radarsat Constellation Mission is still uncertain and, if not resolved in the near future, will result in further job losses once development funding runs out later this year. I regret the impact these circumstances have had on the employees who are being affected."
COM DEV Canada is the contractor designated to provide the central electronics and AIS payloads for Radarsat Constellation Mission. COM DEV International employs more than 1,250 people at its five primary locations in Canada, the USA and the United Kingdom.
About COM DEV
COM DEV International Ltd. (www.comdevintl.com) is a leading global provider of space hardware and services. With facilities in Canada, the United Kingdom and the United States, COM DEV manufactures advanced 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 defense applications. COM DEV's majority-owned subsidiary, exactEarth Ltd., provides satellite data services.
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.
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