|
|
 |
|
|
|
|
December 14, 2000
NEWS RELEASE NO. 00-019
Trading Symbol CDNX: CCB
US SEC Exemption No. 82-3378
RICHMOND, BC - Mr. James L. Swanson, Chairman, of CON-SPACE Communications Ltd., (CDNX:CCB) released today a correction to the Company's news release dated October 17, 2000 in which he incorrectly stated a change in accounting procedures.
Mr. Swanson stated that, "In the October release I stated, 'Operating expenses increased during the year due to a change in accounting procedure to accrue less expenses to deferred development cost and to shorten the amortization period to three years. This move was intended to bring the Company's reporting methods more into line with the changing Canadian Income Tax Act and approach the method of reporting within the USA as the company prepares itself for a potential listing on a US stock exchange. When it became apparent that we needed to alter our accounting methods we concluded it would be best to do so right away and get the change behind us,'"
"In actual fact," said Swanson, "the company did not change its accounting procedures. The company did however change its estimates of the amortization period for deferred product development costs from five years to three years and decided to allocate a lower percentage of general overhead to deferred product development than in prior years. These changes in estimates and allocations were made to reflect the fact that the company's core products had matured to a stage that current development work was focused more on enhancements and custom projects for specific customers or markets than on pure new product development. The fast pace of change in the communications technology field also factored into the decision to use a shorter amortization period. Although the changes had the result of bringing the Company's reporting methods more in line with Canadian Income Tax treatment and the method of reporting within the USA, these were not the underlying reasons for the changes. "
"I trust that this will clarify any misunderstanding my earlier comments may have caused," concluded Swanson.
CON-SPACE has subsidiaries located in the
United States and Britain, with head office and manufacturing
in Richmond, BC, Canada. The company manufactures special voice
communication equipment that is used by general industry, municipalities,
police, fire departments, rescue teams and the military.
For more information, please call Jim Swanson, Investor Relations, CON-SPACE COMMUNICATIONS LTD., (604) 244-9323, (800) 755-2528 in the U.S., or by e-mail [email protected]. "Forward-looking" statements in this release involve risks and uncertainties associated with, among others, economic, industry conditions, technological development, and competition and should not be relied upon as actual results may differ materially from those projected.
and Safety
in Communication areHome | Products | Confined Space | Equipment Applications About CON-SPACE | Contact Us | Site Map | Links