Cubic Corporation

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Cubic Corporation
Traded as NYSECUB
Industry Public transport and defense
Founded 1951 (1951)
Founder Walter Zable
Headquarters San Diego, California, USA
Number of employees
7,900 (July 2015)

Cubic Corporation is an American public corporation providing diversified systems and services to the transportation and defense markets worldwide. Founded and headquartered in San Diego, California, Cubic Corporation is the parent company of two major businesses, Cubic Transportation Systems and Cubic Global Defense.[1]

Cubic employs 7,900 people with offices locations across the globe. Cubic's fiscal year 2014 sales totaled $1.398 billion.[2] Bradley H. Feldmann was named president and chief executive officer of Cubic Corporation in July 2014.[3]

Company Divisions[edit]

Cubic's operating segments include:

  • Cubic Global Defense is a leading provider of realistic combat training systems, secure communications, operations, maintenance, technical and other support services for the U.S. and allied nations.[4]
  • Cubic Transportation Systems designs, integrates, and provides outsourced business process and information technology services for automated fare collection systems for public transit operations.[5][better source needed] 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).[6]

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.[7] 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.[8]