International Datacasting Corporation

International Datacasting Corporation

April 05, 2006 16:05 ET

IDC Announces Profitable Year-End Results

OTTAWA, ONTARIO--(CCNMatthews - April 5, 2006) - Attn: Business/High-Tech Editors

International Datacasting Corporation (TSX:IDC) announced its operating results for the fourth quarter and fiscal year ending January 31, 2006, showing another year of profitability.

The fourth quarter consolidated results in CDN$ are:

three months ending: January 31, 2006 January 31, 2005
Revenue $4,331,663 $3,230,872
EBITDA $640,989 $411,897
Net earnings $325,366 $117,645
Basic earnings per share $0.008 $0.003

The total year consolidated results for the fiscal year in CDN$ are:

twelve months ending: January 31, 2006 January 31, 2005
Revenue $13,526,774 $13,811,431
EBITDA $1,336,720 $1,107,628
Net earnings $664,215 $706,344
Basic earnings per share $0.017 $0.019

Revenues for the fourth quarter of fiscal 2005/2006 grew from $3.2 million to $4.3 million, representing an increase of $1.1 million or 34% compared to the previous year's fourth quarter results. Net Earnings for the fourth quarter remained positive at $325,366, representing a growth of over 175% compared to the net earnings of $117,645 posted for the same period last year.

For the year, the company's revenues decreased on a consolidated basis from $13.8 million the previous year to $13.5 million this year. The company recorded net earnings for the full year of $664,215 or $0.017 per common share.

As of January 31, 2006, the company had $3 million in cash and short term investments, compared to $3.1 million in the previous year and also had $1.5 million in unused credit facilities. By the end of the year, the company had $4.0 million in working capital, down slightly from $4.3 million in the previous year.

Ron Clifton, President and CEO of IDC stated "We had a strong fourth quarter and, although our revenues were relatively flat, we did produce another good year of profitability. We achieved a number of other strategic accomplishments that have strengthened our positioning in our market and set the groundwork for an increase in our long-term shareholder value."

"A major strategic highlight of the year was our successful acquisition of PROFLine B.V and their rapid integration into our operations. This was an excellent acquisition for IDC, providing us with new technologies, expanding our market share, improving our sales channels and adding a new team of experienced professionals to help us grow the business. This acquisition also promises to add significant revenues and contribute positively to the performance of our equipment product business.

In addition, we launched a number of innovative new products last year - our SuperFlex Pro Audio product line for the professional radio broadcast market, enhancements to Datacast XD for digital signage applications and a new integrated product with One Touch Systems for interactive distance learning. We have also enhanced our core technology this year to open up new and exciting applications such as IPTV."

IDC's Chief Financial Officer Susan Robbins Parsons added, "The company demonstrated its ability to maintain profitability while launching new products and expanding into new markets. We were also able to increase our margins, stay profitable and maintain our strong cash and working capital position in spite of a falling US exchange rate."

Key projects won by IDC during the fiscal year 2005/2006 include a mix of new business and important follow-on orders from customers such as Reuters, National Public Radio, Canadian Broadcasting Corporation and Telefonica in Spain. New customers and applications include: Westwood One (CBS Radio), one of the largest radio networks in the world, who selected IDC's SuperFlex technology for distribution of regionalized advertising content during live sporting events; Access IT in the USA for its new digital cinema distribution network; and Vyvx, the leading US distributor of digitized television advertising content. We also won a large initial contract for a new IPTV network being deployed in the USA. In addition, we won the re-competition of the service contract to provide overseas broadcasting for the Canadian Forces Personnel Support Agency.

About International Datacasting Corporation:

IDC (TSX:IDC) provides advanced products, systems and services for the implementation of broadband wireless infrastructure networks used to distribute broadband multimedia data. IDC is at the forefront of delivering IP-based datacasting solutions via satellite and content distribution technologies with installations in more than 100 countries worldwide. IDC's products are in demand for radio and television broadcast networks, enterprise networks, distance learning, digital signage, digital cinema, high-speed Internet infrastructure and other multimedia content distribution applications. IDC is a recipient of numerous awards including the prestigious Canada Export Award for Innovation and Technology Achievement. IDC is headquartered in Ottawa, Canada, operates in Europe through its subsidiary PROFline B.V. in Arnhem, the Netherlands and has an established international network of value-added partners and distributors. 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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