International Datacasting Corporation

International Datacasting Corporation

June 08, 2006 16:05 ET

IDC Reports First Quarter Results

OTTAWA, ONTARIO--(CCNMatthews - June 8, 2006) -

Attn: Business/High-Tech Editors

International Datacasting Corporation (TSX:IDC) today announced its unaudited financial results for the first quarter of fiscal 2006/2007.

The results in CDN$ are as follows:

Three months ending: April 30, 2006 April 30, 2005

Revenue $ 3,276,068 $ 3,330,974
EBITDA ($ 226,482) $ 126,479
Net Earnings ($ 457,405) $ 17,774
Basic Earnings
per share ($ 0.010) $ 0.000

Revenues for the first quarter of fiscal 2006/2007 decreased slightly from $3.3 million for the same period last year to $3.2 million, a dip of 1.8%. The Company ended the quarter with a loss of $457,405 compared to net earnings of $17,774 for the same period last year. The decrease in net earnings was largely attributable to higher selling, general and administrative and amortization costs and a significantly lower US exchange rate-as well as some one-time restructuring costs. Cash on hand and short term investments were $1.6 million at the end of the quarter, with a total working capital of $3.4 million and unused bank facilities of $1.5 million, subject to the usual margin restrictions.

Ron Clifton, President and CEO of IDC commented, "Our first quarter results are disappointing with flat revenues and our first operational loss in nine consecutive quarters. Quarterly fluctuations are not uncommon in the capital equipment business and it is worth noting that we had new orders that we were unable to fulfill before quarter end. These orders, for both existing and new products, will contribute to our backlog going forward.

"There was also good news and a number of positive achievements in this first quarter. We completed the rollout of our new digital radio network for CBS Westwood One, we provided new equipment for the expansion of a new US IPTV network, and we received a large order from Access IT to expand their digital cinema network with our new DVB-S2 receivers. We received an order from Pippin Technical Services for a new Canadian radio network and an order from Instituto Mexicano de Radio (IMER) for a next-generation nationwide radio network in Mexico. We also completed the installation of a new distance education network in Brazil. In addition to new orders, we received a number of other follow-on orders from long-time customers including Reuters and National Public Radio.

"This is an important year for IDC. We are in the process of launching new products and applications in vertical markets for distance learning, broadcast, digital signage and broadband data. At the same time we have made important strides in expanding our presence in Europe. Our groundbreaking new DVB-S2 product line is positioned to be the leading IP multicasting product in the industry offering bandwidth savings/performance improvements in the order of 25-30%. This represents a big jump in return on investment for broadband applications like HDTV, digital cinema, syndicated television and IPTV. Our new interactive distance learning product, developed in cooperation with industry leader One Touch Systems, is also making inroads, winning a Broadcast Engineering Award at the 2006 National Association of Broadcasters (NAB) conference. We are making progress with our new SuperFlex Pro Audio product line for professional radio networks - adding new functionality to increase advertising revenues for broadcasters and also adding new advanced coding technologies such as the latest MPEG 4 AAC technology from the Fraunhofer Institute in Germany. We are confident that we are on the right track with the right products and the right applications."

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, broadcast 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 and has a European base of operations as PROFline B.V. located in Arnhem, the Netherlands IDC has an established international network of partners and distributors and installations in more than 75 countries worldwide. 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.

Contact Information

  • International Datacasting Corporation
    Deborah Lovegrove
    Director of Marketing Communications
    (613) 596-4120 x 274