Compudyne (NASDAQ:CDCY)
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From Jun 2019 to Jun 2024
CompuDyne Corporation (NASDAQ:CDCY), an industry leader in sophisticated
security products, integration, and technology for the public security
markets, announced that on March 15, 2007 its Board of Directors
concluded that it will record impairment charges against goodwill and
other intangible assets associated with its Public Safety and Justice
segment in the fourth quarter of 2006. This segment has embarked on a
major overhaul of its suite of existing software products to a “Microsoft.net”
software platform from their current platform. As a result of this
undertaking, for which the costs incurred to date have been expensed,
reported earnings have been depressed temporarily and thus the Board of
Directors has concluded that an impairment charge is required. We
currently estimate the impairment charges to total $16.1 million against
its goodwill and other intangible assets as required by GAAP. A formal
impairment analysis is occurring in connection with the preparation of
the Company’s financial statements for the
year ended December 31, 2006.
In recent months the Company has received market indications that this
business segment may actually be worth in excess of its current carrying
value. The Company is required, however, to comply with GAAP and record
a book value impairment charge.
Certain statements made in this press release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including those statements
concerning the Company’s expectations with
respect to future operating results and other events. Although the
Company believes it has a reasonable basis for these forward-looking
statements, these statements involve risks and uncertainties that cannot
be predicted or quantified and consequently, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors which could cause actual results to differ from
expectations include, among others, capital spending patterns of the
security market and the demand for the Company’s
products, competitive factors and pricing pressures, changes in
legislation, regulatory requirements, government budget problems, the
Company’s ability to secure new contracts, the
ability to remain in compliance with its bank covenants, delays in
government procurement processes, inability to obtain bid, payment and
performance bonds on various of the Company’s
projects, technological change or difficulties, the ability to refinance
debt when it becomes due, product development risks, commercialization
difficulties, adverse results in litigation, the level of product
returns, the amount of remedial work needed to be performed, costs of
compliance with Sarbanes-Oxley requirements and the impact of the
failure to comply with such requirements, risks associated with internal
control weaknesses identified in complying with Section 404 of
Sarbanes-Oxley, the Company’s ability to
realize anticipated cost savings, the Company’s
ability to simplify its structure and modify its strategic objectives,
and general economic conditions. Risks inherent in the Company’s
business and with respect to future uncertainties are further described
in its other filings with the Securities Exchange Commission, such as
the Company’s Form 10-K, Form 10-Q, and Form
8-K reports.