Richmond, BC - MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") (TSX: MDA), a global communications and information company, reported today that the Company has declared force majeure with respect to the Ground Segment of its communication satellite program in the Ukraine, and this position has been accepted by the customer.
MDA and its Ukrainian customer are evaluating several go-forward scenarios with the goal to minimize the impact. The results of this evaluation will show the impact on the cost and the schedule of the program. However, according to the preliminary estimate, the project is expected to be delayed approximately four to six months, resulting in a shift in revenue and contribution out of this fiscal year to the next year.
The Company’s communications satellite payload program in Russia is well advanced. One satellite has been launched and the payload for the second satellite is in final integration. There has been no impact to this project.
MDA is a global communications and information company providing operational solutions to commercial and government organizations worldwide.
MDA's business is focused on markets and customers with strong repeat business potential. In addition, the Company conducts a significant amount of advanced technology development.
MDA's well-established global customer base is served by more than 4,800 employees operating from 11 offices located in the United States, Canada, and internationally.
The Company's common shares trade under the symbol TSX:MDA.
This release contains forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. (“MDA” or the “Company”) with respect to future events and financial performance. The forward-looking statements in this regard include statements regarding the impact of a force majeure event on MDA’s existing projects and future financial performance. Any such forward-looking statements are based on MDA’s current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. Any such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from current expectations. MDA cautions readers that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. The risks that could cause actual results to differ from current expectations include, but are not limited to: changes in economic and political conditions in various countries and regions in which MDA does business; political risks, including the risks of expropriation, renegotiation of the terms of contracts with governmental entities, termination of contracts, delays or advancements in the approval of projects and delays in the reimbursement for shared costs, non-payment of contractual amounts; changes in regulations, telecommunication standards and laws due to political and economic instability in the countries in which MDA conducts business; risks associated with doing business in developing countries and countries subject to or which may become subject to international sanctions; and changes in government or government priorities, mandates, policies, funding levels, contracts and regulations. MDA does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
For additional information with respect to certain of these risks or factors, plus additional risks or factors, reference should be made to the Company's continuous disclosure materials filed from time to time with Canadian securities regulatory authorities, which are available online under the Company's profile at www.sedar.com or on the Company's website at www.mdacorporation.com.
The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.