MDA profit up on accounting, but revenue plunges

Wed Jul 29, 2009 9:36pm EDT
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TORONTO (Reuters) - Real estate data and space technology company MacDonald, Dettwiler and Associates posted a higher quarterly profit on Wednesday thanks largely to an accounting measure, but said revenue plunged 23.5 percent.

MDA said it earned C$25.3 million ($23.2 million), or 62 Canadian cents a share, in the second quarter. That was up from a profit of C$13.4 million, or 33 Canadian cents a share, a year earlier.

However, the results from the year-ago quarter included a C$16 million fair value loss on equity forward contracts. In the second quarter of this year, that loss was only C$697,000, MDA said.

Sales fell sharply in the quarter, dropping to C$245.8 million from C$321.4 million. MDA mostly blamed "reduced market activity" in its information-products segment.

MDA reported its results after markets closed. During the day, its shares rose 40 Canadian cents to close at C$28.93 on the Toronto Stock Exchange.

($1=$1.09 Canadian)

(Reporting by Wojtek Dabrowski; editing by Rob Wilson)