International Datacasting Corporation

International Datacasting Corporation

August 31, 2005 16:05 ET

IDC Announces Second Quarter Results: New Orders, New Products and Continued Profitability

OTTAWA, ONTARIO--(CCNMatthews - Aug. 31, 2005) - International Datacasting Corporation (TSX:IDC) announced its unaudited financial results for the second quarter of fiscal 2005/2006 today, reporting its sixth consecutive quarter of continued profitability.

The results in CDN$ are as follows:

Three months ending: July 31, 2005 July 31, 2004
Revenue $3,348,537 $3,473,391
Net Earnings $291,066 $282,342
Basic Earnings per common share $0.008 $0.007

Six months ending: July 31, 2005 July 31, 2004
Revenue $6,679,511 $7,237,763
Net Earnings $308,842 $483,988
Basic Earnings per common share $0.008 $0.013

Revenues for the second quarter of fiscal 2005/2006 were $3.35 million, down slightly from the same period last year, resulting in total revenues of $6.68 million for the first half of the fiscal year. Net earnings for the quarter were $291,066 or $0.008 per share, a slight increase over last year's second quarter earnings of $282,342 or $0.007 per share reflecting an improved gross margin for the quarter. Total net earnings for the first half of fiscal 2005/2006 were $308,842 or $0.008 per share.

Cash on hand is $3.23 million at the end of the quarter. Total working capital at the end of the quarter is $4.67 million, up from $4.31 million at the beginning of the year.

Ron Clifton, President and CEO of IDC commented, "We are quite pleased with our performance in the second quarter. We had good success with closing new orders, we produced another consecutive profitable quarter and we continue to maintain our strong cash and working capital position. While our year-to-date revenues are down slightly compared to last year, we are improving our gross margins through more value-added software and we've continued to invest in the development of new products for key target markets."

During the quarter IDC received new orders from Telesat Canada and the US Department of Defense and increased sales through distributors and value-added resellers in Japan, Brazil, India, Turkey, The Netherlands and the Middle East. The company also received initial orders for two new digital cinema networks in the USA and the first phase of a new distance learning system in Thailand.

As usual, follow-on orders from existing customers (including Reuters and National Public Radio) made up a significant portion of revenues for the quarter.

Ron Clifton continued, "We have successfully focused on achieving profitability and strong financial performance while continuing to innovate and develop new products and applications for the broadband IP multicasting market.

"We recently previewed a new line of products for professional radio networks-FlexRoute IP Pro Audio Suite-which we will be launching at Europe's largest industry trade show, IBC ( in Amsterdam next month. IDC's legacy FlexRoute system has been the technology of choice for radio networks around the world-particularly in Europe-over the last decade. This new suite offers current and new customers a smooth migration to next-generation IP-based content distribution providing cost savings and increased performance as well as the latest compression technology (e.g., MPEG-4 AAC).

"At the same time we are also aggressively going after growing markets in digital signage, digital cinema and interactive distance learning-providing flagship systems and forging key strategic alliances. We plan to build on the momentum we've generated over these past several quarters to be more competitive in these exciting applications and markets."

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 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 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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