Pason to Appeal Decision from Canadian Court in AutoDriller Litigation
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
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
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
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.
Visit the company's website atwww.pason.com or contact:
Marcel Kessler President and CEO 403-301-3400 email@example.com
David Elliott Chief Financial Officer 403-301-3441
SOURCE: Pason Systems Inc.
To view this news release in HTML formatting, please use the following URL:
CO: Pason Systems Inc.
NI: OIL LAW VERDICTS LAWVIEWS
-0- Jul/09/2013 21:21 GMT
Press spacebar to pause and continue. Press esc to stop.