Allen-Vanguard Corporation provides general update to shareholders

About this update from Verisante Technology, Inc.

[{"type":"text","content":"\n\n\n\nOTTAWA, Nov. 13 /CNW Telbec/ - Allen-Vanguard Corporation\n("Allen-Vanguard" or the "Company") (TSX:VRS) today provided a general update,\nincluding its revenue for the fourth quarter of fiscal 2008, an update to the\nbusiness and financial drivers and opportunities for fiscal 2009 which\ncommenced October 1, 2008, as well as further commentary on the progress of\nits financial discussions. All amounts are in Canadian dollars unless\notherwise noted.\n\n\nRecent Performance\n\n\nThe Company recorded a pronounced upturn in the finish to its fiscal year\nended September 30, 2008 after a very disappointing third quarter. Revenue for\nthe fourth quarter grew by roughly 50% over the third quarter to approximately\n$45 million, which resulted in estimated revenue for fiscal 2008 in the range\nof $300-$310 million, with all figures subject to final audit. Allen-Vanguard\nnoted that its year-end financial report will show the previously announced\nrestructuring charge for severance and other costs of downsizing its global\nworkforce and rationalizing manufacturing facilities, and will also show a\nlarge write-down of goodwill and other intangible assets.\n\n\nThe Company also reported a very strong start to its new fiscal year\nwhich began October 1, 2008, with a sharp increase in its services business in\nparticular, resulting in order backlog as of October 31st of approximately\n$120 million. The pace of orders six weeks into the new fiscal year\nrepresented an annualized revenue rate of $325 million, which is in line with\nthe Company's expectations for fiscal 2009.\n\n\nBusiness and Financial Drivers for Fiscal 2009\n\n\nThe Company has just completed an exacting analysis and forecast for\nF2009, against a macro environment where improvised explosive devices ("IEDs")\nare projected to remain a persistent global threat, per world-wide military\ndoctrine and per U.S. Homeland Security doctrine. Allen-Vanguard's suite of\nproducts and services are core to the world-wide counter-IED mission.\n\n\nThe revenue expectations for fiscal 2009 represent an increase of\napproximately 5% over fiscal 2008, led by a 50%+ increase in service revenues.\nMore than 60% of forecast 2009 revenue is estimated to come from the combined\nSystems and Services and the Personal Protection Systems business segments.\nSyste...

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