International Datacasting Corporation

International Datacasting Corporation

December 06, 2006 16:51 ET

IDC Reports Third Quarter Results: New Products and New Orders Add up to Revenue Growth and Profitable Quarter

OTTAWA, ONTARIO--(CCNMatthews - Dec. 6, 2006) - International Datacasting Corporation (TSX:IDC) today announced its unaudited financial results for the third quarter of fiscal 2006/2007.

The results in CDN$ are as follows:

Three months ending: October 31, 2006 October 31, 2005

Revenue $4,261,698 $2,515,599
EBITDA(1) $292,967 $152,072
Net Earnings $69,537 $30,009
Basic Earnings per share $0.00 $0.00

Nine months ending: October 31, 2006 October 31, 2005

Revenue $10,901,699 $9,195,110
EBITDA $235,370 $695,731
Net Earnings ($600,704) $338,848
Basic Earnings per share ($0.01) $0.01

Revenues for the third quarter of fiscal 2006/2007 increased by about 70% from $2,515,599 for the same period last year to $4,261,698 and resulted in an 18.5 % growth in year-to-date revenues for the first nine months of the year. The Company ended the quarter with net earnings of $69,537 compared to $30,009 for the same period last year reflecting higher revenues for the quarter and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was $292,967, nearly double the $152,072 for the same three month period last year. Cash on hand and short term investments totaled $2,187,008 at the end of the quarter, with a total working capital of $3,129,338 and unused bank facilities of $1,000,000, subject to the usual margin restrictions.

Ron Clifton, President and CEO of IDC, commented, "We are pleased with the growth we have been able to achieve this quarter. The first half of the year was disappointing but our investments in research and development, marketing and acquisition are starting to pay off and so we are happy to return to profitability.

"Pent-up demand for our new DVB-S2 products is starting to show in our numbers. Early in the quarter we released an expanded line of DVB-S/S2 products-DVB-S2 is a new, cutting-edge international standard that offers a dramatic improvement in the efficiency of satellite bandwidth.

"The DVB-S2 products are leading IDC into today's high-growth vertical markets including IPTV, HDTV and digital cinema. SES Americom, one of the largest satellite operators in the world, is using IDC's DVB-S2 receivers exclusively for its new IPTV service IP Prime. IP Prime enables telcos to offer "triple play" to their customers by adding television to their normal service offering of telephony and internet connectivity - and satellite delivery is reliable, secure and has the lowest possible operating cost for this application. Access IT, another leader in the industry, is rolling out digital cinema service to hundreds of movie theatres across the US with IDC's DVB-S2 receivers.

"We are also encountering demand from longtime customers upgrading their networks to take advantage of the cost savings and high-performance of DVB-S2-including a major UK-based agency for its global financial news service. IDC was selected to provide their next generation of DVB-S/S2 satellite router/receivers for the expansion of a secure financial information network in Europe - resulting in backlog going forward from orders received and pending valued at over $2.5 million (CDN).

"IDC is unique among players in the broadband satellite arena-we were first to market with a cost-effective, enterprise-grade multicasting solution with built-in encryption and conditional access technology and we intend to go after this market aggressively in the coming months."

Other highlights of the quarter:

- Based on IDC's early leadership in DVB-S and DVB-S2, the company has been awarded an important research and development contract with the European Space agency (ESA) to investigate the feasibility of a next-generation of advanced DVB-S2 products. The objective of the project is to plan and develop an expansion of IDC's DVB-S2 product line for ultra-high throughput performance and multi carrier operation.

- IDC's European subsidiary, PROFline, was a strong and successful contributor both in new products and in new sales. PROFline European sales of our audio products continue to be brisk with significant new orders from Radio Maria ($1 million CDN) in Italy and Teracom in Sweden. PROFline released a next generation of RoHS compliant TRA audio receivers featuring the latest MPEG4 AAC decoding and its line of RDS products is gaining momentum around the world.

- IDC named Edward DiCarlo, a senior executive with many years of satellite industry experience (including with IDC customer Loral Cyberstar) as Vice President Sales & Marketing. Based in the Washington, D.C. area, Mr. DiCarlo brings critical new insights and expertise to the IDC Senior Management Team and sharpens our sales focus on the US market.

Ron Clifton concluded, "We are pleased with the company's accomplishments this quarter. We have a good team and excellent products and we are optimistic going forward."

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 and 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 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.

(1)Note: Use of non-GAAP Financial Information

Non-GAAP net income is provided to enhance the overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that 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
    Deborah Lovegrove
    Director of Marketing Communications
    613-596-4120 x 274