Cubic Corporation

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Cubic Corporation
Traded as NYSECUB
Industry Public transport and defense
Founded 1951 (1951)
Founder Walter Zable
Number of employees
8,000 (Sep 2011)

Cubic Corporation is an American public corporation providing military defense equipment and automated fare collection equipment. It is headquartered in San Diego, California, with offices in North America, Europe, India, and Australia.

Founded and headquartered in San Diego, CA since 1951, Cubic is the parent company of three major business segments. Cubic's businesses are primarily engaged in the design, development, manufacture, integration, and sustainment of high technology systems, products, and services for government and commercial customers. With fiscal year 2013 sales of $1.361 billion, Cubic employs nearly 8,000 people worldwide. Bradley H. Feldmann was named president and chief executive officer of Cubic Corporation in July 2014.[citation needed]

Cubic has provided products, systems and services in nearly 60 nations. Its employees work from more than 130 locations in approximately 20 nations.[citation needed]

Cubic customizes its products, systems, and services to meet specific requirements for government and commercial customers in defense and transportation markets. The solutions Cubic provides require specialized knowledge and experience.[citation needed]

Company Divisions[edit]

Cubic's operating segments include:

Mission Support Services[edit]

Mission Support Services provides live, virtual and constructive training services for U.S. and allied militaries,[1] as well as force modernization, battle command training, professional military education, leader development, intelligence systems training, open-source analysis, operations and maintenance support, logistics support and weapons effects modeling.

Cubic Defense Applications[edit]

Cubic Defense Applications is a provider of live air (ACMI) and ground combat training systems worldwide; a supplier of virtual and immersive training systems, communications, and electronics products; and an emerging provider of cyber technologies and global tracking solutions for commercial and national military customers. Defense Systems supplies realistic live and virtual combat training systems for military forces, and live, virtual and constructive systems integration. Cubic’s defense communications products include advanced tactical data links and surveillance receivers for “C4ISR” applications and search-and-rescue avionics. This segment is also involved in advanced laser and other research projects.

Cubic Transportation Systems[edit]

Cubic Transportation Systems designs, integrates, and provides outsourced business process and information technology services for automated fare collection systems for public transit operations. Additionally, this segment provides the fare payment infrastructure, including gates, ticket machines and smart card readers, and the back-end or central system for processing and reporting revenue and other data. Cubic’s wide range of services includes customer support, software support, and operations services.

Cubic Transportation Systems is the operator of Ventra, the electronic fare payment system for the Chicago Transit Authority (CTA). [2]

Accounting Restatement[edit]

On August 1, 2012, after discussion with the Audit committee, Cubic's management agreed to restate its financial statements for the year ended October 31, 2011, 2010, and 2009.[3] Consequently Cubic was forced to restate all of its previous Quarterly financial statements.

What prompted the restatement was an issue with the revenue recognition policy adopted by management. The restatement produced an increase in equity of $26.9 million.[4]