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REDLINE COMMUNICATIONS GROUP INC. ANNOUNCES DELAY IN FILING OF FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTH PERIODS ENDED

^{Published on 2011-01-07 15:20:42 - Market Wire}
 

TORONTO, Jan. 7 /CNW/ - Redline Communications Group Inc. (TSX: RDL) ("Redline" or the "Company") today announced that the filing of the Company's interim financial statements and related management's discussion and analysis for the three and nine month periods ended September 30, 2010 has been delayed. The Company will also be restating its audited consolidated financial statements and related management's discussion and analysis as at and for the fiscal years ended December 31, 2008 and 2009. The Company will also be restating its unaudited interim consolidated financial statements for the three and nine months ended September 30, 2009, and for the three and six months ended March 31, 2010 and June 30, 2010.

During the preparation of the September 30, 2010 interim consolidated financial statements, the Company determined there were errors related to the calculation of certain of the amounts related to the initial restatement and certain other items that have been identified. Accordingly, the Company is restating its consolidated financial statements as at December 31, 2009 and 2008 and for each of the years then ended. Since the restatement of the 2009 Financial Statements also impacts the opening balances of 2010, this resulted in delays in filing the unaudited financial statements for the three month period ended September 30, 2010 (the "Q3 2010 Interim Financial Statements").

Redline is actively working with its advisors and expects the filing of its restated 2008 and 2009 financial statements, Q3 2010 Interim Financial Statements, all relevant management's discussion and analysis and all other required filings to take place within the next two weeks.

As a result of its failure to file its Q3 2010 Interim Financial Statements and other required filings by the due date, the Company is not able to proceed with its application for an order revoking its previously announced cease trade order. As soon as all appropriate filings have been made, Redline expects to resume this process. Additional updates will be provided when available.

About Redline Communications
Redline Communications ([ www.rdlcom.com ]), founded in 1999, is a publicly traded company on the Toronto stock exchange that manufactures powerful and versatile wireless broadband systems used to cost-effectively deploy distributed applications and services. Municipalities use Redline products to quickly and easily deploy or extend their video surveillance networks; oil and gas companies to monitor how their oil wells are operating; service providers and enterprises to bring business grade access to buildings, and the military to create secure networks in any location. For over 10 years Redline has been delivering reliable wireless solutions to thousands of customers in over 100 countries, with the strong combination of high capacity, speed, range and reliability. Redline products are marketed and supported through an exclusive network of value added resellers in the Americas; the Middle East and Africa.

NOTE: All registered and unregistered trademarks mentioned in this release are the property of their respective owners.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking statements can be identified by terms such as "could", "expect", "may", "will", "anticipate", "believe", "intend", "estimate", "plan", "potential", "project" or other expressions concerning matters that are not historical facts. Readers are cautioned not to place undue reliance upon any such forward-looking statements.

Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements, by their nature, are based on certain assumptions regarding expected growth, management's current plans, estimates, projections, beliefs, opinions and business prospects and opportunities (collectively, the "Assumptions"). While the Company considers these Assumptions to be reasonable, based on the information currently available, they may prove to be incorrect.