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BRIEF-AlarmForce expects to take one-time charges of about $0.06/share in YTD Q3 financial statements

Published 2016-08-24, 07:43 a/m
© Reuters.  BRIEF-AlarmForce expects to take one-time charges of about $0.06/share in YTD Q3 financial statements

Aug 24 (Reuters) - AlarmForce Industries Inc:

* Says "determined that it ought not to have continued charging monitoring fees in some jurisdictions for period"

* Company's review, in part, resulted from due diligence undertaken during a potential sale process.

* Says determination following "certain residential customers' subscription cancellations until equipment was returned"

* During course of review, company's cancellation practice was raised as an issue

* Expects to incur one-time charges estimated at $0.7 million (or $0.06 per share) in its YTD Q3 2016 financial statements

* Will examine revenue recognition policies for periods starting fiscal Q4 2013 for revenue from contracts after customer requested cancellation

* Incremental costs are expected due to Co's efforts related to subscription cancellation practice, possible employee tax liabilities

* May need to restate reported revenue for some or all such previously reported financial results for charges previously recognized from canceled customer agreements

* Says company will be reviewing residential contracts covering period starting on August 1, 2013 Source text for Eikon: Further company coverage: AF.TO

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