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For immediate release: October 28, 2009

MDA reports third quarter 2009 results

Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the third quarter ended September 30, 2009. MDA posted net earnings of $29 million, or 70 cents per diluted share. This is compared to net earnings of $242,000, or one cent per diluted share, for the same period of last year.

Summary of consolidated results


Q3-2009
Q3-2008
YTD
Q3-2009
YTD
Q3-2008

($ thousands, except per common share amounts)
Consolidated revenues
245,600
278,282
763,364
890,164
 
 
 
 
 
Net earnings
28,509
242
78,217
39,740
Net earnings per common share, basic
0.70
0.01
1.93
0.99
Net earnings per common share, diluted
0.70
0.01
1.93
0.98
 
 
 
 
 
Adjusted net earnings1
27,822
20,115
80,168
71,279
Adjusted net earnings per common share, basic
0.69
0.50
1.98
1.77
Adjusted net earnings per common share, diluted
0.68
0.50
1.97
1.75
 
 
 
 
 
Weighted average number of common shares outstanding:
(thousands)
    Basic
40,492
40,318
40,454
40,262
    Diluted
40,697
40,560
40,605
40,733
 
 
 
 
 
Average exchange rates:
    1 US dollar to Canadian dollar
1.097
1.042
1.170
1.019
    1 British pound to Canadian dollar
1.800
1.967
1.798
1.981

1 Adjusted net earnings and adjusted net earnings per common share are non-GAAP financial measures.

Net earnings per diluted share, adjusted for items affecting comparability as set forth in the table below, increased to 68 cents this quarter from 50 cents for the same period of last year.

Consolidated revenues were $246 million compared to $278 million for the third quarter of 2008. Revenues for the third quarter of 2009 reflect accounting changes to revenue recognition for the Company’s property information business in British Columbia and a shift in sales mix towards higher margin, value-added information solutions.

Cash flows from operating activities this quarter increased significantly to $33 million from $15 million for the same period of last year. Total debt, less cash and cash equivalents, was $381 million at September 30, 2009, down from $410 million at June 30, 2009 and $460 million at December 31, 2008.

Reconciliation of net earnings to adjusted net earnings


Q3-2009
Q3-2008
YTD
Q3-2009
YTD
Q3-2008

($ thousands)
Net earnings
28,509
242
78,217
39,740
Items affecting comparability:
    Stock-based compensation expense (recovery)
4,792
(1,661)
9,827
(787)
    Fair value loss (gain) on equity forward contracts
(5,696)
29,121
(10,914)
38,045
    Restructuring expense
-
1,278
3,549
1,278
    Costs related to terminated divestiture of
        Information Systems and Geospatial Services
        businesses
-
-
-
4,934
    Tax on items affecting comparability
217
(8,865)
(511)
(11,931)
Adjusted net earnings
27,822
20,115
80,168
71,279


MDA’s unaudited consolidated financial statements and management’s discussion and analysis for the three and nine months ended September 30, 2009 are available at:
http://www.mdacorporation.com/corporate/investor/financial-reports

About MDA

MDA provides advanced information solutions that capture and process vast amounts of data, produce essential information, and improve the decision making and operational performance of business and government organizations worldwide.

Focused on markets and customers with strong repeat business potential, MDA delivers a broad spectrum of information solutions, ranging from complex operational systems, to tailored information services, to electronic information products.

MDA employs more than 3,200 people in locations across the United States, the United Kingdom, and Canada. The Company's common shares trade on the Toronto Stock Exchange under the symbol TSX:MDA.

Investor/Analyst Conference Call Today

MDA President and CEO Daniel Friedmann and Executive Vice President and CFO Anil Wirasekara will be available on a Conference Call today, October 28, 2009 at 2:30 p.m. Pacific (5:30 p.m. Eastern) to explain the financial results of the Company and to answer questions.

To participate, dial 1-800-766-6630 in Canada or the United States
In Toronto, dial 416-695-6616

The Conference Call will also be Webcast live and archived at:
http://www.mdacorporation.com/corporate/investor/events

Telephone replay will be available until November 5, 2009 at the following numbers:

Toll free, International, dial 1-800-408-3053
In Toronto, dial 416-695-5800
Pass Code 8412131

Related Websites:
www.mdacorporation.com

Forward-Looking Statements
This earnings release and the associated earnings conference call and webcast contains certain forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. (“MDA”) with respect to future events and financial performance. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of such terms or variations of them or similar terminology. Any such forward-looking statements are based on MDA's current expectations, estimates, projections and assumptions made in light of its experience and its perception of historical trends. Any such forward-looking statements are subject to risks and uncertainties and MDA’s actual results of operations could differ materially from historical results or current expectations. You are referred to the risk factors described in MDA's most recent annual Management's Discussion and Analysis, Annual Information Form and other documents on file with the Canadian securities regulatory authorities, available online at www.sedar.com or www.mdacorporation.com. The forward-looking statements and information contained in this earnings release and the associated earnings conference call and webcast represent MDA’s views only as of today’s date. MDA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law, rule or regulation. You should not place undue reliance on forward-looking statements.



For more information, please contact:

Wendy Keyzer
MDA External Relations
Telephone: 604-231-2743
E-mail: wendy@mdacorporation.com


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