Business
Vecima Networks Announces a Restatement of Future Tax Assets for Year Ended June 30, 2007
- Change limited to extraordinary earnings; no impact on operating income or cash flow - VICTORIA...
About this update from Vecima Networks Inc.
[{"type":"text","content":"\n\n\n\n- Change limited to extraordinary earnings; no impact on operating income\nor cash flow -\n\n\nVICTORIA, BC, Sept. 23 /CNW/ - Vecima Networks Inc. ("Vecima") (TSX:VCM),\nthe Last Mile Solution(R) for broadband wired and wireless networks, today\nannounced that it has identified an error in valuation of the future tax asset\nrecorded for the fiscal year ended June 30, 2007. Investment tax credits\n(ITCs) acquired in the purchase of Spectrum Signal Processing Inc. (SSP),\nshould have been recorded net of the future tax liability associated with the\nITCs and therefore the future tax asset was overstated by $4.4 million. There\nis no impact on operating income, net income before extraordinary income or\ncash flow.\n\n\nIn summary, the restatement has the following effects:\n\n-------------------------------------------------------------------------\n Previously\n($ mil) Restated Stated Change\n-------------------------------------------------------------------------\nNet income before extraordinary\n gains $9.5 $ 9.5 NIL\n-------------------------------------------------------------------------\nExtraordinary Gain $11.1 $15.5 $(4.4)\n-------------------------------------------------------------------------\nNet Income $20.6 $25.0 $(4.4)\n-------------------------------------------------------------------------\nFuture Tax Assets $32.3 $36.7 $(4.4)\n-------------------------------------------------------------------------\nRetained Earnings $68.2 $72.6 $(4.4)\n-------------------------------------------------------------------------\n\nThe revised annual report for the year ended June 30, 2007 is posted on\nwww.sedar.com.\n\n\nAbout Vecima Networks\n\n\nVecima Networks Inc. (TSX:VCM) designs, manufactures and sells products\nthat enable broadband access to cable, wireless and telephony networks.\nVecima's hardware products incorporate original embedded software to meet the\ncomplex requirements of next-generation, high-speed digital networks. Service\nproviders use Vecima's solutions to deliver services to a converging worldwide\nbroadband market, including what are commonly known as "triple play" (voice,\nvideo and data) and "quadruple play" (voice, video, data and wireless)\nservices. Vecima's solutions allow service providers to rapidly and\ncost-effectively bridge the final network segment t...