Teknion Corporation

Teknion Corporation

July 12, 2007 18:36 ET

Teknion Corporation Announces Restatement of Financial Results

TORONTO, ONTARIO--(Marketwire - July 12, 2007) - Teknion Corporation (TSX:TKN) today announced that it has filed restated financial statements (and corresponding MD&A) for the first quarter of fiscal 2007 and for the 2006 fiscal year (which includes restated comparative figures for fiscal 2005 and a restatement of 2005 opening retained earnings). These restatements are required as a result of the findings of the Company's previously announced special review of inventory at its Malaysian operation. The restated financial statements (and corresponding MD&A) can be found at www.sedar.com and on the Company's website at www.teknion.com. Teknion had previously indicated that it estimated that its inventory was overstated at February 28, 2007 in an amount in the range of $5 - $6 million. The actual total inventory overstatement (and the total cumulative overstatement of previously reported operating earnings to February 28, 2007) is $6.5 million. A summary of the restatements by period is set out in note 3 to the Company's financial statements for the second quarter of fiscal 2007 which are also today being released. The Company is taking steps to improve controls in its Malaysian subsidiary. A review of the circumstances which resulted in the inventory overstatement is continuing.

Forward-Looking Statements

Certain of the above statements are forward-looking statements with respect to the Company's future prospects. These statements involve risks and uncertainties that could cause the Company's financial results to differ materially from stated expectations as a consequence of a number of factors, including but not limited to: fluctuations in the Company's operating results due to product demand arising from competitive and general economic and business conditions in the Company's North American and international markets and operations; significant fluctuations in exchange rates for currencies in which the Company does business; changes in the cost of raw materials; the ability to maintain the proprietary nature of the Company's intellectual property in the design and manufacturing of its products; changes in the size and timing of customers' order patterns; changes in the Company's markets, including technology change, changes in customer requirements, frequent new product introductions by competitors and emerging standards; the Company's dependence on key personnel; the Company's dependence on key commitments from significant dealers and distributors; potential liabilities arising from product defects; environmental matters and other factors set forth in the Company's reports and filings with Canadian securities regulators. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Teknion Corporation (TSX:TKN) is a leading international designer, manufacturer and marketer of office systems and related office furniture products. Teknion's headquarters are located in Toronto, Ontario. The company has offices and facilities in Canada, the United States, the United Kingdom and the Pacific Rim, and serves clients through a network of authorized dealers worldwide. Visit Teknion at www.teknion.com.

Contact Information

  • Teknion Corporation
    Steven E. Cohen
    Senior Vice President, Corporate Development
    (416) 661-1577, ext. 2456
    Teknion Corporation
    Scott E. Bond
    Senior Vice President, Chief Financial Officer & Secretary
    (416) 661-1577, ext. 2391
    Website: www.teknion.com