TORONTO, ONTARIO — (Marketwired) — 12/16/15 — GuestLogix Inc. (TSX: GXI), the leading global provider of ancillary-focused merchandising, payment and business intelligence technology to airlines and the passenger travel industry, today announced that a preliminary internal review initiated by the CEO and the board of directors of the Company in respect of a/certain contract(s) has revealed that the Company may not have been following proper revenue recognition accounting policies.
As a result, the Company has formed an independent committee of its directors to supervise a review of the Company–s historical financial statements and to determine the extent to which these issues could result in the Company being required to restate any of its financial statements. The Committee will also be considering the adequacy of the Company–s internal controls. The Committee is being advised by external counsel which has engaged Deloitte LLP to assist in the review.
While it is too early to determine the precise amounts or effect of the issues that have been identified, the preliminary review indicates that they are material. The Company and its advisors intend to work expeditiously to conclude the review, determine the nature and scope of any issues identified and finalize any related disclosures.
The Company will provide updates on its affairs in accordance with its obligations under Canadian securities laws and as its internal review progresses.
About GuestLogix
GuestLogix Inc. (TSX: GXI), is a global leader in comprehensive merchandising, payment and business intelligence technology delivered to the passenger travel industry, both onboard and off-board. Bringing over a decade of expertise as the industry–s most trusted onboard transaction processing partner to airlines, rail operators and elsewhere in the passenger travel industry, GuestLogix powers the industry–s growing reliance on ancillary revenue generation. Both direct to operators as well as through partnerships with global leaders in catering, duty-free, inflight entertainment and self-service retail experts, the Company provides the payment services touching over 1 billion travelling consumers each year. On December 23, 2014, GuestLogix announced the acquisition of OpenJaw Technologies, a Dublin-based technology company focused on travel retailing innovation in the e-commerce segment. GuestLogix– global headquarters and centre for product innovation is located in Toronto, with regional offices located in Dallas, London, Dublin, Galway, Madrid and Hong Kong, and product innovation labs located in Moncton and Krakow. More information is available at and .
© 2015 GuestLogix. All Rights Reserved.
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws and are made pursuant to the “safe harbour” provisions of such laws. Statements related to the Committee–s planned internal review into the Company–s revenue recognition accounting policies and the adequacy of the Company–s internal controls, and the potential for a restatement of the Company–s historical financial statements as a result of such investigation are forward-looking statements which are subject to certain assumptions, risks and uncertainties. These risks and uncertainties include such factors as the Committee–s ability to conclude its review in a timely manner, the results of the internal review and the Company–s ability to restate its historical financial statements in a timely manner if such a restatement is required and other similar factors that may cause the actual results or performance of the Company to differ materially from the results or performance expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Unless otherwise required by applicable securities laws, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
GuestLogix
Dan Thompson
SVP – Marketing & Communications
416-849-1566
You must be logged in to post a comment Login