- Change limited to extraordinary earnings; no impact on operating income or cash flow -
VICTORIA, BC, Sept. 23 /CNW/ - Vecima Networks Inc. ("Vecima") (TSX:VCM), the Last Mile Solution(R) for broadband wired and wireless networks, today announced that it has identified an error in valuation of the future tax asset recorded for the fiscal year ended June 30, 2007. Investment tax credits (ITCs) acquired in the purchase of Spectrum Signal Processing Inc. (SSP), should have been recorded net of the future tax liability associated with the ITCs and therefore the future tax asset was overstated by $4.4 million. There is no impact on operating income, net income before extraordinary income or cash flow.
In summary, the restatement has the following effects:
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Previously
($ mil) Restated Stated Change
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Net income before extraordinary
gains $9.5 $ 9.5 NIL
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Extraordinary Gain $11.1 $15.5 $(4.4)
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Net Income $20.6 $25.0 $(4.4)
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Future Tax Assets $32.3 $36.7 $(4.4)
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Retained Earnings $68.2 $72.6 $(4.4)
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The revised annual report for the year ended June 30, 2007 is posted on
www.sedar.com.
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima's hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima's solutions to deliver services to a converging worldwide broadband market, including what are commonly known as "triple play" (voice, video and data) and "quadruple play" (voice, video, data and wireless) services. Vecima's solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as "the last mile," by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima's products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed, and continues to focus on developing, products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. www.vecima.com
