International Datacasting Corporation

International Datacasting Corporation

June 09, 2005 16:05 ET

IDC Announces First Quarter Results: Continued Profitability with Growing Cash and Working Capital

OTTAWA, ONTARIO--(CCNMatthews - June 9, 2005) - All amounts are expressed in Canadian dollars unless otherwise indicated

International Datacasting Corporation (TSX:IDC) announced its unaudited financial results for the first quarter of fiscal 2005/2006 today, reporting continued profitability and a strong cash and working capital position.

The results are as follows:

Three months ending: April 30, 2005 April 30, 2004
Revenue $3,330,974 $3,764,372
Net Earnings $17,774 $201,651
Basic Earnings per common share $0.000 $0.005

Revenues for the first quarter of fiscal 2005/2006 declined from $3.8 million to $3.4 million, $434,602 or 12% less than the same period last year. The reduced revenues resulted in net earnings for the quarter of $17,774 compared to net earnings of $201,651 for the same period last year. At the same time, IDC continued to improve its cash and working capital. Cash on hand increased by approximately $400,000 to a total of $3.5 million at the end of the quarter.

Ron Clifton, President and CEO of IDC commented, "I am pleased to announce another profitable quarter. This sustained profitability, along with the continued growth in our cash and working capital position builds on our momentum from last year and provides us with increased operating flexibility going forward. This was also a healthy quarter for bookings with over $7.1M in new orders booked."

During the quarter IDC announced two multimillion dollar contract awards: A contract renewal with the Canadian Government - Canadian Forces Personnel Support Agency - to provide multimedia datacasting services to Canadian Forces overseas. IDC also booked a significant new order with National Public Radio in the US to add a streaming audio system to expand its ContentDepot distribution system.

Datacast XD-IDC's Content Management & Distribution System--was at the heart of new and follow-on orders from several customers including Vyvx, Best Buy and Mainstream Data in the United Sates, Multichoice in South Africa, Reuters in Asia and Europe, Organizacion Editorial Mexicana and Benemerita Universidad Autonoma de Puebla in Mexico and AT Communications in Japan. Datacast XD, along with IDC's SuperFlex satellite technology was also selected by Microspace Communications in the USA to expand their broadband VELOCITY® service for distance learning and other multimedia applications.

Ron Clifton concluded, "Overall, this has been a positive quarter but we still face important challenges. Last year, we focused on our core business and rebuilding our cash reserves. This year we are starting to rebuild our marketing and sales force in addition to accelerating the R&D of our next-generation products. Our new digital audio product line, in particular, is getting a very favorable response in the market."

About International Datacasting Corporation:

IDC (TSX:IDC) provides advanced products, systems and services for the implementation of broadband wireless infrastructure networks used to distribute multimedia data. IDC is at the forefront of delivering IP-based datacasting solutions via satellite and content distribution technologies. IDC's products are in demand for high-speed Internet infrastructure, enterprise networks, distance learning, and multimedia content distribution. IDC is a recipient of numerous awards including the prestigious Canada Export Award for Innovation and Technology Achievement. IDC is headquartered in Ottawa, Canada with an established international network of partners and distributors and installations in more than 75 countries worldwide. Visit IDC on the web at

This press release contains forward-looking statements that may involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with IDC's growth, the development of the satellite datacasting market, regulatory risks, intellectual property infringement and other factors. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect IDC's financial and business results is included in the public documents IDC files from time to time with Canadian securities regulatory authorities.

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