CriticalControl Solutions Corp.

CriticalControl Solutions Corp.

November 17, 2011 22:10 ET

CriticalControl Files Restated 2010 Consolidated Financial Statements and Management Discussion & Analysis

CALGARY, ALBERTA--(Marketwire - Nov. 17, 2011) - CriticalControl Solutions Corp. (TSX:CCZ) today issued its restated consolidated financial statements and management discussion & analysis for the year ended December 31, 2010.

During 2011, and subsequent to release of the December 31, 2010 consolidated financial statements, the Corporation's ongoing efforts to improve processes and controls relating to the management of inventory at its US fabrication facilities led to the identification of an error in the carrying value of inventory that originated in the Corporation's 2010 consolidated financial statements. The accounting error is attributable to incorrect costing and incorrect relieving of inventory as fabricated measurement assemblies were sold.

The impact of correcting this error on the December 31, 2010 consolidated financial statements is as follows:

Year ended
December 31, 2010
Increase cost of revenue and decrease earnings before income tax 1,701
Decrease income tax expense 682
Decrease net earnings 1,019
Decrease other comprehensive loss – foreign currency translation adjustments 30
Decrease total comprehensive income 989
Decrease inventory 1,651
Increase income tax receivable 662
Increase deficit 1,019
Decrease accumulated other comprehensive loss 30
Decrease net earnings per share, basic 0.02
Decrease net earnings per share, diluted 0.03

In 2011, the Corporation has strengthened its inventory management processes through the hiring of more experienced personnel and the implementation of improved internal controls.

About CriticalControl:

CriticalControl delivers outsourced solutions for information intensive and document intensive transactional processes. Through the implementation of technology, workflow and economies of scale we are able to provide highly secure control over sensitive information and processes in a cost effective manner.

Contact Information

  • CriticalControl Solutions Corp.
    Alykhan Mamdani
    President & CEO
    (403) 705-7500