CALGARY, July 9, 2013 /CNW/ - Following up on its July 5, 2013 press
release, Pason Systems Inc. (TSX: PSI) ("Pason" or the "Company")
announced today that it will be filing an appeal with the Canadian
Federal Court of Appeal of the judgment released by the Federal Court
of Canada, Trial Division, on July 5, 2013 regarding the Company's
AutoDriller product (the "AutoDriller"). After reviewing the lengthy
and complex judgment, management has decided to pursue several issues
on appeal, including the damages calculations endorsed by the Trial
Judge.
For further clarification, the damages set out in the judgment ($52.9
million) are based upon revenue earned from the AutoDriller in Canada
and international countries, other than the United States, from the
product's inception in 2003 until September 2010 (the date that the
financial reports used at trial were prepared). In addition to that
time period, the Court found that the Plaintiff is entitled to damages
based upon revenue Pason earned from the AutoDriller after September
2010 through to the expiration of the plaintiff's patent on April 19,
2013. The extent of revenue earned from the AutoDriller in Canada and
internationally, other than from the United States, during that time
period and resulting damages will be determined on further application
to the Trial Judge and be subject to appeals.
Pason expects numerous other post-judgment applications to be made to
the Trial Court prior to the appeal, including motions to determine the
amount of interest and court costs, all of which are also subject to
appeals.
The Company continues to await a judgment from the US Court of Appeals
for the Federal Circuit regarding the Colorado case, and is preparing
its defense in the Texas case which is still in the preliminary stages.
As at March 31, 2013, the Company had reserved $53.1 million in its
consolidated financial statements for the three AutoDriller cases
described above. In light of the recent judgment in the Canadian case
and Pason's decision to appeal that judgment, the reserve will be
adjusted and disclosed in the Company's consolidated financial
statements for the period ending June 30, 2013.
Pason Systems Inc.
Pason Systems Inc. is a leading provider of instrumentation systems to
land-based and offshore drilling rigs worldwide. The company's rental
solutions, which include data acquisition, wellsite reporting, remote
communications, and web-based information management, maximize rig
uptime, improve work efficiency, and minimize operating costs. Pason's
common shares trade on the Toronto Stock Exchange under the symbol PSI.
Certain information regarding the Company contained herein may
constitute forward-looking information under applicable securities
law. The words "anticipate", "expect", "believe", "may", "should",
"will", "estimate", "project", "outlook", "forecast" or other similar
words are used to identify such forward-looking information and
statements. Forward-looking statements in this document may include
statements, express or implied regarding the anticipated business
prospects and financial performance of Pason; anticipated results of
litigation; expectations or projections about future strategies,
including litigation strategies; expected and future cash flows and
revenues; and expected impact of future commitments or contingencies.
These forward-looking statements are based upon various underlying
factors and assumptions, including the Company's assets, liabilities,
business prospects and opportunities; the results of litigation; and
estimates of the financial and operational performance of Pason.
Forward-looking information and statements are subject to known or
unknown risks and uncertainties that may cause actual results to differ
materially from those anticipated or implied in the forward-looking
information and statements. Risk factors that could cause actual
results or events to differ materially from current expectations
include, among others, the ability of Pason to successfully implement
its strategic initiatives (including litigation strategy) and whether
such strategic initiatives will yield the expected benefits, the
operating performance of Pason's assets and businesses, the price of
energy commodities, competitive factors in the energy industry, changes
in laws and regulations affecting Pason's businesses, the actions of
litigants and other claimants, technological developments, and general
economic conditions.
Readers are cautioned not to place undue reliance on forward-looking
statements as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Such forward
looking statements, although considered reasonable by management as of
the date hereof, may prove to be incorrect and actual results may
differ materially from those anticipated. Forward-looking statements
contained in this press release are expressly qualified by this
cautionary statement.
Additional information on risks and uncertainties and other factors that
could affect Pason's operations or financial results are included in
Pason's reports on file with the Canadian securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com or through Pason's website www.pason.com). Furthermore, any forward looking statements contained in this news
release are made as of the date of this news release, and Pason does
not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly required
by securities law.
SOURCE: Pason Systems Inc.
