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8-K - FORM 8-K - SERVIDYNE, INC. | g27006e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT: | Alan R. Abrams, Chairman and Chief Executive Officer (770) 953-0304 E-mail: investorrelations@servidyne.com |
SERVIDYNE ANNOUNCES RESTATEMENT OF FINANCIAL RESULTS
Revising the timing of a previously recorded increase in the valuation allowance of deferred
state income tax assets; the change will reduce the Companys year-to-date net loss from
continuing operations by $643,000, or 28%, and have no impact on the Companys most
recent balance sheet or prior or future period cash flows.
state income tax assets; the change will reduce the Companys year-to-date net loss from
continuing operations by $643,000, or 28%, and have no impact on the Companys most
recent balance sheet or prior or future period cash flows.
ATLANTA April 27, 2011 SERVIDYNE, INC. (Nasdaq: SERV), an energy efficiency and demand
response company, today reported that the Company will restate its financial results to revise the
timing of a previously recorded increase in the valuation allowance on deferred state income tax
assets. The financial statements covered by the restatement are included in the Companys Form 10-K
for the year ended April 30, 2010, and the Quarterly Reports on Form 10-Q for the periods ended
July 31, 2010, October 31, 2010, and January 31, 2011. The expected impact will be to reduce the
net loss from continuing operations for the first nine months of the current fiscal year by
$643,000, and to increase the total combined net loss from continuing operations in the prior two
fiscal years by the same amount. The Company plans to file the restated financial statements as
promptly as practicable.
The restatement is necessitated by the Companys determination that the valuation allowance on
state deferred tax assets that was fully recorded in the fiscal third quarter ended January 31,
2011, should have been recorded beginning as of the fiscal year ended April 30, 2009, and adjusted
in each subsequent fiscal period. The correction of the financial statements will have no impact
on the Companys previously reported balance sheet for the most recent quarter ended January 31,
2011, but will reduce the amount of deferred tax assets on the balance sheet for the fiscal years
ended April 30, 2009, and April 30, 2010, and the fiscal quarters ended July 31, 2010, and October
31, 2010, by varying amounts.
The accounting treatment for deferred income tax assets is complex and requires a great deal of
judgment, noted Alan R. Abrams, Chairman of the Board and Chief Executive Officer. While it is
unfortunate to have to amend our previously announced financial results, I believe that we are
following a sound and conservative interpretation of the relevant standards.
It is important to note that this correction simply involves moving a substantial majority of the
non-cash income tax valuation allowance that we originally fully expensed last quarter into earlier
fiscal periods, which will have no impact on our previously reported pre-tax results and no impact
on our prior or future period cash flows.
Additional information regarding the restatement will be included in a Form 8-K being filed today
by the Company with the U.S. Securities and Exchange Commission.
About Servidyne
Established in 1925, Servidyne, Inc. is headquartered in Atlanta, Georgia, and operates
globally. The Company provides comprehensive energy efficiency and demand response solutions,
sustainability programs, and other products and services that significantly enhance the operating
and financial performance of existing buildings. Servidyne enables its customers to cut energy
consumption and realize immediate cost
savings across their portfolios, while reducing greenhouse gas emissions and improving the comfort
and satisfaction of their buildings occupants. The Company serves a broad range of markets in the
United States and internationally, including owners and operators of corporate, commercial office,
hospitality, gaming, retail, light industrial, distribution, healthcare, government, multi-family
and education facilities, as well as energy services companies and public and investor-owned
utilities. For more information, please visit www.servidyne.com or call 770-953-0304.
Certain statements contained or incorporated by reference in this press release, including
without limitation, statements containing the words believe, anticipate, estimate, expect,
plan, project, forecast, should, and words of similar import, are forward-looking
statements within the meaning of the federal securities laws. Forward-looking statements involve
known and unknown risks, uncertainties, and other matters which may cause the actual results,
performance, or achievements of Servidyne, Inc. to be materially different from any future results,
performance, or uncertainties expressed or implied by such forward-looking statements. Factors
affecting forward-looking statements in this release include, without limitation, the factors
identified under the caption Risk Factors in the Companys Annual Report on Form 10-K for the
year ended April 30, 2010, as updated from time to time in the Companys Quarterly Reports on Form
10-Q. Servidyne, Inc. does not undertake to update these forward-looking statements.
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