BARRE, Vt., May 24, 2016 /PRNewswire/ -- Northern
Power Systems Corp. (TSX:NPS), a next generation renewable
energy technology company, announced that it will restate its
previously issued financial results for fiscal 2013, 2014 and the
first three quarters of fiscal year 2015.
The company's financials are being restated due to an error in
the timing of recognizing revenue for certain overseas
transactions. The company has historically recognized revenue
for a turbine sale when title and risk of loss transfers to the
customer, which occurs at the time of shipment from our
Vermont manufacturing
facility. For the overseas transactions at issue, because the
turbines were shipped to a foreign logistics warehouse, rented by
Northern Power in the customer's country, the company has
determined that revenue for such transactions should have been
recorded when the turbine was transported out of the foreign
logistics warehouse to the customer's installation site, and not
when shipped from our Vermont
manufacturing facility. For some transactions, due to the
amount of time a turbine was in overseas transit and in the foreign
logistics warehouse, revenue for turbines shipped in one quarter
should have been recorded in a subsequent fiscal quarter. In
such cases, revenue previously recognized in certain quarters will
be recognized in subsequent quarters. This restatement is
being made at the recommendation of the Audit Committee of the
company's Board of Directors, acting in consultation with the
company's management. The Audit Committee and management have
discussed the matters disclosed herein with RSM US LLP, the
company's independent public accounting firm.
The company reports that the restatement had no impact on the
company's cash position or cash flow from operations.
Given the restatement, the company intends to file its 2015
annual results as soon as practically possible, and will also file
restated 2013 and 2014 results, and quarterly results for each of
the quarters impacted as a footnote within its 2015 Form
10-K. The Company is working with RSM US LLP to establish a
timeline for such filings, and anticipates completion by
June 30, 2016. Accordingly,
investors should no longer rely upon the company's previously filed
financial statements and other financial disclosures in respect to
the restatement periods, as well as any previous disclosures
concerning full year 2015 revenue.
About Northern Power Systems
Northern Power Systems designs, manufactures, and sells wind
turbines and power technology products, and provides engineering
development services and technology licenses for energy
applications, into the global marketplace from its US headquarters
and European offices.
- Northern Power Systems and its predecessors have almost 40
years' experience in technologies and products generating renewable
energy.
- Northern Power Systems currently manufactures the NPS™ 60 and
NPS™ 100 turbines. With over 10 million run time hours across its
global fleet, Northern Power wind turbines provide customers with
clean, cost effective, reliable renewable energy.
- Patented next generation permanent magnet direct drive (PMDD)
technology uses fewer moving parts, delivers higher energy capture,
and provides increased reliability due to reduced maintenance and
downtime.
- Northern Power Systems' FlexPhase™ power converter platform
uses patented converter architecture and advanced controls
technology for advanced grid support and generation
applications.
- Northern Power Systems offers comprehensive in‐house
development services, including systems level engineering, advanced
drivetrains, power electronics, PM machine design, and remote
monitoring systems to the energy industry.
To learn more about Northern Power Systems, please visit
www.northernpower.com.
Notice regarding forward-looking statements:
This release includes forward-looking statements regarding
Northern Power Systems and its business, which may include, but is
not limited to, product and financial performance, regulatory
developments, supplier performance, anticipated opportunity and
trends for growth in our customer base and our overall business,
our market opportunity, expansion into new markets, and execution
of the company's growth strategy. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "is expected", "expects",
"scheduled", "intends", "contemplates",
"anticipates", "believes", "proposes" or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Such statements are based
on the current expectations of the management of Northern Power
Systems. The forward-looking events and circumstances discussed in
this release may not occur by certain specified dates or at all and
could differ materially as a result of known and unknown risk
factors and uncertainties affecting the company, including risks
regarding the wind power industry; production, performance and
acceptance of the company's products; our sales cycle; our ability
to convert backlog into revenue; performance by the company's
suppliers; our ability to maintain successful relationships with
our partners and to enter into new partner relationships; our
performance internationally; currency fluctuations; economic
factors; competition; the equity markets generally; and the other
risks detailed in Northern Power Systems' risk factors discussed in
filings with the U.S. Securities and Exchange Commission (the
"SEC"), including but not limited to Northern Power Systems' Annual
Report on Form 10-K filed on March 31,
2015, as well as other documents that may be filed by
Northern Power Systems from time to time with the SEC. Although
Northern Power Systems has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended. No
forward-looking statement can be guaranteed. Except as required by
applicable securities laws, forward-looking statements speak only
as of the date on which they are made and Northern Power Systems
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise.
Ciel R. Caldwell
Chief Financial Officer
+1-802-661-4673
ir@northernpower.com
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SOURCE Northern Power Systems Corp.