Benzinga | Sep 17, 2021 08:02AM EDT

Westport Restates Q2 Financial Statements Due To Accounting Error

* No impact on gross margin, net income, or the Company's statement of cash flows.

VANCOUVER, British Columbia, Sept. 17, 2021 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. ("WFS" or the "Company") (TSX:WPRT, NASDAQ:WPRT) announced that it has filed amended and restated unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2021 (the "Amended Statements") and related amended and restated management's discussion and analysis. The Amended Statements were required to correct an accounting error which was identified during an internal review of one of the Company's subsidiaries' statutory financial records. All figures are expressed in millions of United States dollars.

The Company recently became aware of and corrected a non-routine intercompany inventory sale of $5.7 million in the second quarter of 2021 which was not eliminated from reported consolidated revenue and cost of revenue. There was no impact on gross margin, net income, or the Company's statement of cash flows.

The Company's consolidated revenue for the three and six months ended June 30, 2021 was restated to $79.0 million and $155.5 million, respectively. The Company's consolidated cost of revenue for the three and six months ended June 30, 2021 was restated to $63.3 million and $126.7 million, respectively. Line items restated in the Amended Statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2021 are presented in the table below.

Three months ended June 30, 2021 As previously reported Amendment As restatedRevenue $ 84.7 $ (5.7 ) $ 79.0 Cost of revenue $ 69.0 $ (5.7 ) $ 63.3 Six months ended June 30, 2021 Revenue $ 161.1 $ (5.7 ) $ 155.5 Cost of revenue $ 132.4 $ (5.7 ) $ 126.7

"At Westport Fuel Systems, we are committed to integrity and accountability in delivering our products and services to our customers, and to being a responsible corporate citizen, which includes the accuracy of our financial reporting. Notwithstanding the accounting error, our performance in the second quarter of 2021 was another good quarter for Westport Fuel Systems as our revenue increased by 3% sequentially and 119% year-over-year, a reflection of the demand for our products and services as we navigate the ongoing supply chain issues that are challenging the global automotive industry."

David M. Johnson, Chief Executive Officer