International Datacasting Corporation

International Datacasting Corporation

September 04, 2007 17:01 ET

IDC Announces Second Quarter Results: Continued Profitability and Strong Growth Fueled by New Products and Important New Contracts

Attn: Business/High-Tech Editors

OTTAWA, ONTARIO--(Marketwire - Sept. 4, 2007) - International Datacasting Corporation, (TSX:IDC) announced its unaudited financial results for the second quarter of fiscal 2007/08.

The results in CDN$ are as follows:

Three months ending July 31, 2007 July 31, 2006

Revenue $5,583,916 $3,363,933

EBITDA $715,290 $139,899

Net Earnings $450,278 $(212,835)

Basic Earnings
per share $0.01 $(0.01)

Revenues for the second quarter grew from $3.4 million to $5.6 million representing an increase of $2.2 million or 64% growth compared to the same period last year. Net earnings for the second quarter are $450,278, representing an increase of $663,113 over last year. Earnings before interest, tax, depreciation, and amortization (EBITDA) also increased from $139,899 to $715,290. As of July 31, 2007, the company had $1.1 million in cash compared to $2.6 million in the previous quarter and also had $400,000 in unused credit facilities and working capital of $4,178,062.

"It is a pleasure to report another strong quarter. Our continued growth and profitability is a direct result of our investment in new products and applications as well as hard work on the part of our marketing and sales team-especially in the video arena," said Ron Clifton, President and CEO of IDC. "Our momentum continues to grow. In addition to the important $2.6M order we announced in the second quarter, we have received more than $6M in new orders in the first four weeks of our third quarter, giving us an excellent backlog-approximately $9M-to year end."

Other highlights for the second quarter include:

- New orders for radio broadcast products in the US, including a network expansion for Wyoming Public Radio and follow-on orders from National Public Radio (NPR). IDC subsidiary PROFLine in Europe also contributed with an expansion of the large national radio network announced in the first quarter of this year, new orders for advanced Radio Data Systems (RDS) encoders and follow-on orders for Radio Maria.

- The market for IDC video products continues to grow. SES Americom expanded the rollout of its IP Prime IPTV service resulting in new orders and our receivers were featured at the NxtComm telecommunications event in Chicago in June as part of a live demonstration of the service. In addition, IDC also received new international orders for our SFX Pro Video product line launched earlier this year. The Pro Video is generating interest because it combines Standard and High-Definition (SD and HD) video decoding in a single unit, supports local content playback, works with both legacy MPEG2 and the new MPEG 4 AVC standard and also can deliver IPTV content.

- Working with Korean partner A&D Engineering and Korea Telecom, IDC supplied a new SuperFlex network for the National Emergency Management Agency of South Korea to implement an upgrade to a country-wide early warning system. The early warning system uses a combination of audio messages and alarms to inform residents of a broad range of potential emergencies.

- IDC also received a number of other orders from new customers including the US Department of Defense and Nokia as well as orders from existing customers such as Accuweather, Vyvx, Tribune Broadcasting, Hearst-Argyle and Reuters.

- IDC announced the signing of a new software licence agreement for IP encapsulation technology which will strengthen the SuperFlex head-end/uplink product line and improve IDC's competitive advantage in large network applications, such as IPTV

Ron Clifton concluded, "This was clearly a most satisfactory quarter. We are on track for continued growth, especially in some of the exciting new media distribution markets we've seen open up in the last year. I would like to congratulate our excellent team of employees, and thank our shareholders and valued customers for their continued support."

About International Datacasting Corporation (IDC):

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 and digital cinema, high-speed Internet infrastructure and other multimedia content distribution applications such as IPTV. 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 wholly owned 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 and .

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.

Note: Use of non-GAAP Financial Information

Non-GAAP non-income is provided to enhance the overall understanding of our current financial performance and our prospects for the future. Specifically, we believe non-GAAP results provide useful information to both management and investors by excluding specific expenses we believe are not indicative of our core operating results. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles.

Contact Information

  • International Datacasting Corporation
    Tracy Trottier
    Marketing Communications
    613-596-4120 x 2274