Elektrobit Group Oyj - EB (ELEKTROBIT CORPORATION) WILL ADJUST THE BALANCE SHEET POSTING OF THE IMPAIRMENT RELATED TO ITS RECEIVABLES FROM ITS CUSTOMER TERRESTAR NETWORKS
December 08, 2010
EB (ELEKTROBIT CORPORATION) WILL ADJUST THE BALANCE SHEET POSTING OF THE IMPAIRMENT RELATED TO ITS RECEIVABLES FROM ITS CUSTOMER TERRESTAR NETWORKS
STOCK EXCHANGE RELEASE
Free for publication on December 8, 2010, at 11:15 a.m. (CET+1)
EB (ELEKTROBIT CORPORATION) WILL ADJUST THE BALANCE SHEET POSTING OF THE IMPAIRMENT RELATED TO ITS RECEIVABLES FROM ITS CUSTOMER TERRESTAR NETWORKS
EB (Elektrobit Corporation) informed on October 25, 2010, of its decision to book a statutory provision in the amount of EUR 8.3 million related to the accounts receivables owed to its subsidiary Elektrobit Inc. by its customer TerreStar Networks Inc. that has filed for reorganization. Thereafter it has become evident that according to the IFRS regulation, instead of the statutory provision, the company should have booked impairment of the accounts receivables. Therefore EB will adjust the balance sheet in the Financial Statement 2010 by replacing the statutory provision with the impairment that will directly reduce the bookkeeping value of the abovementioned accounts receivables. The balance sheet posting chosen earlier and presented in the January-September 2010 Interim Report released on October 28, 2010, has not resulted incorrect profit impact in the Interim Report nor will the above described later adjustment affect the result or the company's outlook published in the Interim Report.
If the statutory provision of EUR 8.3 million, announced in EB's stock exchange release of October 25, 2010, were booked as impairment of the accounts receivables, it would have affected the figures in the January-September Interim Report 2010 published on October 28, 2010, (later "reported") in accordance with the Company's unaudited calculations as follows:
- Equity ratio 67.1 % (reported 62.7%)
- Provisions 0.8 MEUR (reported 9.1 MEUR)
- Current liabilities total 39.2 MEUR (reported 47.4 MEUR)
- Total liabilities 49.9 MEUR (reported 58.1 MEUR
- Total assets 127.2 MEUR (reported 135.5 MEUR)
- Trade and other liabilities 53.8 MEUR (reported 62.0 MEUR)
- Current assets total 87.5 MEUR (reported 95.8 MEUR)
EB will release the Financial Statement bulletin 2010 on February 17, 2011, at 8:00 a.m.
Oulu, December 8, 2010
EB, Elektrobit Corporation
Board of Directors
Further information:
Jukka Harju
Chief Executive Officer
Tel +358 40 344 5466
Distribution:
NASDAQ OMX Helsinki
Principal media
EB, Elektrobit Corporation
EB develops advanced technology and transforms it into enriching end user experiences. EB specializes in demanding embedded software and hardware solutions for the automotive industry and wireless technologies. The company's net sales for the year 2009 totaled EUR 153.8 million. Elektrobit Corporation is listed on the NASDAQ OMX Helsinki. www.elektrobit.com
