OTTAWA, ONTARIO--(Marketwired - March 20, 2014) - International Datacasting Corporation (TSX:IDC) ("IDC" or the "Company") today announced preliminary results for the 2014 financial year ended January 31, 2014. All results in this release have been prepared in accordance with IFRS, and are preliminary and subject to audit. All amounts are presented in Canadian dollars. Audited financial statements, updated management discussion and analysis, and a conference call to discuss the results will be available in late April 2014.
In the fourth quarter of Fiscal 2014, IDC's revenue was $3.6 million, a 44% increase from the third quarter revenues driven by increases in both product and service revenues. On a year-over-year basis, Fiscal 2014 fourth quarter revenues declined by 42% from Fiscal 2013 fourth quarter, due primarily to lower product sales in North America and Western Europe.
For Fiscal 2014, revenue was $16.3 million compared with Fiscal 2013 revenues of $29.2 million. The decline was driven by the completion of the systems project with Wananchi group, as well as by a 38% decrease in product revenues. Services revenues were flat year over year.
IDC's loss before income taxes for Fiscal 2014 was $4.8 million, compared to a $1.0 million loss before income taxes for Fiscal 2013. This increase was driven by lower revenues.
IDC's current assets as of January 31st, 2014, were $10.4 million and current liabilities $3.3 million, for a net working capital of $7.1 million. These compare with current assets of $16.0 million, current liabilities of $4.9 million, and net working capital of $11.1 million at January 31, 2013. The reduction in working capital was primarily driven by operating losses incurred during Fiscal 2014.
Given significant operating losses incurred from Fiscal 2012 through Fiscal 2014, IDC anticipates that an impairment charge against non-current assets will be included in Fiscal 2014's final audited results; however, this charge will not impact IDC's cash or working capital position. More detail will be provided with the full Fiscal 2014 financial statements and Management Discussion and Analysis.
IDC anticipates progressive improvement in product sales during Fiscal 2015, however, those improvements are expected to be partially offset by the reduction in revenues from the Canadian Forces Radio & Television broadcast services contract.
IDC's President and CEO Doug Lowther stated, "In the past six months, IDC has developed a new business strategy and put in place a new leadership team. We restructured our sales force, initiated a refresh of our product portfolio, and significantly reduced our cost structure. These changes provide IDC with a stronger foundation and we are moving forward with confidence and determination. I would like to thank our shareholders for your ongoing patience and support."
Upcoming Shareholder Communications
IDC expects to publish complete Fiscal 2014 results and analysis prior to the end of April. A public conference call will be held following the release of the Company's complete Fiscal 2014 results to permit investors and analysts to ask questions of IDC's management.
About International Datacasting Corporation:
International Datacasting Corporation (TSX:IDC) is a global leader in digital content distribution for the world's premiere broadcasters in radio, television, data and digital cinema. The Company's products and solutions are in demand for radio and television networks, targeted ad insertion, digital cinema, 3D live events, satellite newsgathering, sports contribution, VOD, and IPTV. IDC is headquartered in Ottawa, Canada, with regional offices in Arnhem, the Netherlands and in San Diego, California. For more information visit: www.datacast.com.
This press release contains certain information that constitutes "forward-looking information" and/or "forward-looking statements" within the meaning of applicable Canadian securities laws, including statements regarding management's beliefs with respect to Fiscal 2014 audit results, expected results in Fiscal 2015, the expected impact of the CFRT decision announced by IDC on February 5, 2014 and the Company's plans with respect to further shareholder communications. All forward-looking information and forward-looking statements are necessarily based on a number of estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material assumptions used to develop the forward looking-statements made in this release include anticipated cost savings resulting from the initiatives taken by the Company under its action plan, management's perceptions of current conditions and expected future developments, expectations regarding future shipments of IDC products, management's knowledge of the current credit, interest rate and liquidity conditions affecting the Company as well as other considerations that are believed to be appropriate in the circumstances.
All statements other than statements which are reporting results as well as statements of historical fact are forward-looking statements that may involve a number of known and unknown risks, uncertainties and other factors; many of which are beyond the ability of IDC to control or predict.
Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan or "project" or the negative of these words or other variations on these words or comparable terminology. The Company considers the assumptions upon which the forward-looking statements contained in this release are based to be reasonable, based on information currently available to it, but there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Risk factors that might cause actual results to differ materially include, but are not limited to: competitive developments; expectations regarding new product initiatives and timing; a lengthy and variable sales cycle for IDC's products and services; IDC's reliance on a small number of customers for a large percentage of its revenue; and expectations with respect to the sufficiency of its financial resources and liquidity. Further, any incorrect identification of, or failure or delay in identifying, areas that require attention in IDC's business as part of the Company's strategic review, or inability to successfully address areas requiring increased focus in accordance with IDC's action plan, could materially adversely affect the Company's business, financial conditions, and results of operations as well as other key indicators.
More detailed information about potential factors that could affect IDC's financial and business results and the material assumptions upon which the forward-looking statements are based is included in the public documents IDC files from time to time with Canadian securities regulatory authorities (including, without limitation, IDC's Fiscal 2013 MD&A dated April 29, 2013 and Q3 Fiscal 2014 MD&A dated December 10, 2013) and which are available on SEDAR at www.sedar.com.
Except as expressly required by applicable law, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are provided to assist external stakeholders in understanding IDC's expectations as at the date of this release and may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on such statements.