LYDALL INC /DE/ FILES (8-K) Disclosing Material Impairments
(Edgar Glimpses Via Acquire Media NewsEdge) Item 2.06 Material Impairments
On February 7, 2013, the Board of Directors of Lydall, Inc. (the "Company")
approved a change in the Company's information technology (IT) software and
systems strategy. A previous project, involving a comprehensive Enterprise
Resource Planning ("ERP") reimplementation, was abandoned in favor of a project
that involves an upgrade of the Company's existing ERP system and some
additional applications software.
This decision was the result of establishing an updated alignment of the
Company's IT strategy with its strategic growth initiatives, and examining cost
effective ways of achieving the Company's overall business objectives. The
Company determined that continuing with the previous project would result in
increases in estimated costs and a significant extension in the time expected to
complete the work. This new approach is expected to be completed by the Company
at a lower cost, in a shorter time frame, and with less overall business risk.
As a result of this change in IT strategy, the Company recorded a $1.8 million
non-cash charge to earnings in the quarter ended December 31, 2012, as the
previous project costs were deemed to have no future fair value.
This Report on Form 8-K contains "forward-looking statements" as that term is
defined in the Private Securities Litigation Reform Act of 1995, including
statements about the expected cost, timeline and benefits of the Company's new
IT strategy. The Company cautions investors that such forward-looking statements
are not guarantees of future performance and that actual results may differ
materially from those contemplated by the forward-looking statements. Factors
that could cause actual results to differ materially from estimates contained in
the Company's forward-looking statements include unexpected technical challenges
that may arise during implementation of the Company's new IT strategy, potential
cost over-runs, reliance of third parties for successful achievement of aspects
of the project and the other factors relating to the Company's general business
and operations set forth in Part I, Item 1A -- Risk Factors in the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2011.
The forward-looking statements speak only as of the date of the filing of this
Report on Form 8-K. The Company does not undertake to update any
forward-looking statement made in this report or that may from time to time be
made by or on behalf of the Company.
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