CAMBRIDGE, ON, Dec. 12, 2016 /CNW/ - ATS Automation Tooling
Systems Inc. (TSX: ATA) ("ATS" or the "Company") today provided an
update in relation to a program that was put on hold by a customer,
which impacted approximately $70
million of Order Backlog.
As reported in the Company's Management's Discussion &
Analysis for the three months ended October
2, 2016 ("MD&A"), the customer had placed the program on
hold subsequent to the end of the Company's second fiscal quarter,
following rapid changes in their market which caused them to
re-evaluate their product road map. The customer has now formally
cancelled the program. The expected impact of the hold/cancellation
on the Company for the third fiscal quarter was previously
disclosed in the MD&A.
Going forward, ATS has been engaged by the customer to repurpose
those parts of the equipment already completed that can be used by
the customer in the manufacture of its next-generation
product. Based on consultations with the customer, ATS expects
to be invited to bid on and potentially participate in the
provision of additional equipment to manufacture this next
generation of product. The customer has advised that it expects to
begin placing orders in early-to-mid calendar 2017.
About ATS
ATS is an industry-leading automation
solutions provider to many of the world's most successful
companies. ATS uses its extensive knowledge base and global
capabilities in custom automation, repeat automation, automation
products and value-added services including pre-automation and
after-sales services to address the sophisticated manufacturing
automation systems and service needs of multinational customers in
markets such as life sciences, chemicals, consumer products,
electronics, food, beverage, transportation, energy, and oil and
gas. Founded in 1978, ATS employs approximately 3,500 people at 23
manufacturing facilities and over 50 offices in North America, Europe, Southeast
Asia and China. The
Company's shares are traded on the Toronto Stock Exchange under the
symbol ATA. Visit the Company's website at
www.atsautomation.com.
Note to Readers: Non-IFRS Measures:
Order Backlog is a non-IFRS measure and does not have a
standardized meaning prescribed within IFRS and therefore may not
be comparable to similar measures presented by other companies.
Order Backlog provides a measure of the value of contracts that
have not been completed at a specified point in time and is an
indicator of future revenues the Company expects to generate based
on contracts that management believes to be firm.
Forward Looking Statements:
This news release contains certain statements that constitute
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of ATS, or developments in ATS's
business or in its industry, to differ materially from the
anticipated results, performance, achievements or developments
expressed or implied by such forward-looking statements.
Forward-looking statements include all disclosure regarding
possible events, conditions or results of operations that is based
on assumptions about future economic conditions and courses of
action. Forward-looking statements may also include, without
limitation, any statement relating to future events, conditions or
circumstances. ATS cautions you not to place undue reliance upon
any such forward-looking statements, which speak only as of the
date they are made. Forward-looking statements relate to, among
other things, ATS's expectation to be invited to bid on and
potentially participate in the provision of additional equipment to
its customer. The risks and uncertainties that may affect
forward-looking statements include, among others: impact of the
global economy and general market performance; that the customer
changes it plans in relation to additional equipment; that ATS
fails to win any potential bid to provide additional equipment; and
other risks detailed from time to time in ATS's filings with
Canadian provincial securities regulators. Forward-looking
statements are based on management's current plans, estimates,
projections, beliefs and opinions, and other than as required by
applicable securities laws, ATS does not undertake any obligation
to update forward-looking statements should assumptions related to
these plans, estimates, projections, beliefs and opinions
change.
SOURCE ATS Automation Tooling Systems Inc.