For immediate release: July 26, 2007
MDA Reports Second Quarter 2007 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, 2007.
Consolidated revenues for the second quarter of 2007 increased 29% to $312 million compared to $241 million for the second quarter last year. The Company's continued growth and strong performance in the U.K. Financial Services sector helped increase Information Products revenues to $218 million, up from $156 million for the second quarter of 2006. The Company continued to achieve solid results in Information Systems, and reported revenues of $93 million compared to $85 million for the same period last year. Net earnings for the second quarter of 2007 were $20 million, or $0.45 per diluted common share, compared to $21 million, or $0.48 per diluted common share, for the same period last year. As in the preceding quarter, earnings included significant start-up costs related to the Company's Home Information Packs (HIPs) business. In addition, the Company's HIPs business incurred significant standby costs with no corresponding revenue and had one-time downsizing costs in June following the U.K. government's last-minute decision to change the implementation process and date for HIPs.
For the six months ended June 30, 2007, consolidated revenues increased to $618 million compared to $475 million for the same period last year. Information Products revenues increased to $428 million compared to $282 million for the same period a year ago. Information Systems revenues were $190 million, consistent with revenues of $192 million for the same period last year. Net earnings for the six months ended June 30, 2007 were $41 million ($0.94 per diluted common share), on par with net earnings for the same period last year.
| | Three months ended June 30, | Six months ended June 30, | | | 2007 | 2006 | 2007 | 2006 | | | | | | | | | | ($ millions, except per common share amounts) | | Consolidated revenues | 311.9 | 241.1 | 618.1 | 474.7 | | | Earnings before income taxes | 26.8 | 29.5 | 56.2 | 57.7 | | Net earnings | 19.8 | 20.8 | 41.2 | 40.7 | | Net earnings per diluted common share | 0.45 | 0.48 | 0.94 | 0.95 |
| All results are reported in Canadian dollars and are prepared in accordance with Canadian generally accepted accounting principles.
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 earth and space based information solutions, ranging from complex operational systems, to tailored information services, to electronic information products.
MDA employs more than 3,000 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.
MDA's Second Quarter 2007 unaudited consolidated financial statements are available at: http://www.mdacorporation.com/investor/financial_reports.shtml
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 26, 2007 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 1-888-575-8232 in Canada or the United States In Toronto, dial 416-406-6419
The Conference Call will also be Webcast live and archived at: http://www.mdacorporation.com/investor/events.shtml
Telephone replay will be available until August 2, 2007 at the following numbers:
Toll free, International, dial 1-800-408-3053 In Toronto, dial 416-695-5800 Pass Code 3228797
Related Websites:
www.mdacorporation.com
Forward-Looking Statements
This release contains forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. with respect to future events and financial performance. 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. Additional information on these and other potential factors that could affect MDA's financial results are detailed in documents filed from time to time with the applicable Canadian securities regulatory authorities.
The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.
For more information, please contact:
Wendy Keyzer
MDA External Relations
Telephone: 604-231-2743
E-mail: wendy@mdacorporation.com
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