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For immediate release: July 29, 2010

MDA reports second quarter 2010 results

Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the second quarter ended June 30, 2010. MDA's diversified businesses continue to deliver solid results. Operating earnings¹ per share were $0.83, up 17% compared to $0.71 for the second quarter of last year. GAAP earnings per share were $0.67.

Financial Highlights


Q2-2010
Q2-2009
YTD-2010
YTD-2009

($ thousands, except per common share amounts)
Consolidated revenues
258,350
245,794
504,233
517,764
 
 
 
 
 
Operating earnings
34,067
28,752
67,087
52,345
Operating earnings per common share, basic
0.83
0.71
1.64
1.29
Operating earnings per common share, diluted
0.83
0.71
1.64
1.29
 
 
 
 
 
Net earnings
27,494
25,286
56,575
49,708
Net earnings per common share, basic
0.67
0.63
1.39
1.23
Net earnings per common share, diluted
0.67
0.62
1.38
1.23
 
 
 
 
 
Weighted average number of common shares outstanding:
(thousands)
    Basic
40,889
40,455
40,788
40,435
    Diluted
41,025
40,625
40,971
40,560
 
 
 
 
 
Average exchange rates:
    1 US dollar to Canadian dollar
1.028
1.167
1.034
1.206
    1 British pound to Canadian dollar
1.533
1.807
1.579
1.797


Revenues from Information Systems for the second quarter increased to $141 million compared to $101 million for the same period of last year. Adjusted Information Products revenues¹ were $117 million this quarter, consistent with the same period a year ago before foreign exchange fluctuations. As at June 30, 2010, the Company’s order backlog was $928 million (December 31, 2009 – $1,013 million).

Cash flow from operations remained strong. In the six months ended June 30, 2010, the Company made net debt repayments of $82 million, reducing long-term debt, less cash and cash equivalents, to $202 million.

MDA’s unaudited consolidated financial statements and management’s discussion and analysis for the three and six months ended June 30, 2010 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.

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, July 29, 2010 at 2:30 p.m. Pacific (5:30 p.m. Eastern) to discuss the results of the Company and to answer questions.

Additional material for the conference call and webcast will be available to download from: http://www.mdacorporation.com/corporate/investor/

To participate, dial 1-888-231-8191 in Canada or the United States
International: 1-647-427-7450

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

Telephone replay will be available until August 5, 2010 at the following numbers:

Toll free: 1-800-642-1687
Toronto: 1-416-849-0833
Pass Code 76121453

Related Websites:
www.mdacorporation.com

Non-GAAP Financial Measures

This earnings release includes certain non-GAAP financial measures. The Company uses non-GAAP financial measures as supplemental indicators of its operating performance and to assist readers in comparing operating results from period to period. These measures do not have any standardized meanings prescribed by Canadian GAAP and therefore may not be comparable to similar measures presented by other companies. Readers are cautioned not to view these non-GAAP financial measures as alternatives to financial measures calculated in accordance with GAAP. The non-GAAP financial measures are defined and reconciled to the most directly comparable Canadian GAAP measures in the following tables.

Operating earnings
The Company refers to net earnings adjusted for specified items affecting comparability as operating earnings.


Q2-2010
Q2-2009
YTD-2010
YTD-2009

($ thousands)
Operating earnings
34,067
28,752
67,087
52,345
Items affecting comparability:
    Stock-based compensation
(11,177)
(1,889)
(5,373)
(5,035)
    Fair value adjustments on equity forward contracts
10,341
(697)
458
5,218
    Fair value adjustments on foreign exchange forward
        contracts tied to certain projects not subject to
        hedge accounting
(6,800)
-
(6,800)
-
    Foreign exchange gain on translation of intercompany
        balances
2,108
-
2,108
-
    Fair value adjustments on interest rate swap
        contracts not subject to hedge accounting
235
-
(414)
-
    Restructuring expense
(2,884)
(2,416)
(2,884)
(3,549)
    Tax on items affecting comparability
1,604
1,536
2,393
729
Net earnings
27,494
25,286
56,575
49,708


Adjusted Information Products revenues
To derive adjusted Information Products revenues for prior periods, the Company retroactively applies certain changes to revenue recognition which, for GAAP purposes, were applied prospectively.


Q2-2010
Q2-2009
YTD-2010
YTD-2009

($ thousands)
Adjusted Information Products revenues
117,354
130,339
229,648
255,556
Retroactive application of net revenue recognition to
    BC OnLine revenues
-
6,116
-
25,809
Retroactive application of net revenue recognition to
    certain contracts for valuation-related solutions
    in the U.K.
-
7,945
670
16,700
Information Products revenues
117,354
144,400
230,318
298,065


Forward-Looking Statements

This earnings release and the associated conference call and webcast, which includes a business update, second quarter 2010 results and question and answer session, 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 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.

The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.

¹ See section “Non-GAAP Financial Measures” in this earnings release.



For more information, please contact:

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


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