- Impacts non-cash items relating to tax allowance benefits -
TORONTO, Dec. 5 /CNW/ - Luxell Technologies Inc. (TSX:LUX), a leading provider of electronic displays to the defense and aerospace industries, announced today that it will refile selected financial statements of its 2008 fiscal year based on the recommendation of its audit committee and in consultation with its independent auditors, McGovern, Hurley, Cunningham, LLP.
The restatements of non-cash items are due to the reversal of an extraordinary gain of approximately $8 million associated with a valuation allowance on unused tax benefits previously adjusted in the Company's second quarter results of fiscal 2008. The restatements only affect Luxell's financial results for the second and third quarters of fiscal 2008. The Company's recently filed fourth-quarter and year-end results for fiscal 2008, which reported a first-ever net income of $717,000 in Q4 and consolidated revenues of $5.0 million for the year, remain unaffected.
"We are committed to the highest level of financial reporting standards and will complete our restated financial results as quickly as possible," said Jean-Louis Larmor, President and CEO of Luxell Inc. "While the restatements are unfortunate, they do not impact the operation of our ongoing business nor negate any of the significant progress we have made over the past 12 months to strengthen our Company."
The valuation at the end of the second quarter, February 28 2008, was based upon sales expectations for 2009 before the recent economic slowdown. Although Luxell has not received any cancellation of sales contracts, some supply contracts have been delayed by customers in the first quarter of fiscal 2009.
About Luxell
Luxell designs, manufactures and licenses flat panel display technologies and solutions for the defense and aerospace industries. More information can be found at www.luxell.com. Luxell Technologies Inc., Luxell and Black Layer are trademarks of Luxell Technologies Inc. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.
Forward-Looking Statements
This news release contains certain "forward-looking statements" that reflect the current views and/or expectations of Luxell Technologies Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
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