International Datacasting Corporation

International Datacasting Corporation

April 04, 2007 16:35 ET

International Datacasting Announces Results for Fourth Quarter and Fiscal Year: Record Fourth Quarter, Continued Profitability and 32% Growth In Revenues

OTTAWA, ONTARIO--(CCNMatthews - April 4, 2007) - International Datacasting Corporation (TSX:IDC) announced its operating results for the fourth quarter and fiscal year ending January 31, 2007, showing another year of profitability and growth.

The fourth quarter consolidated results in CDN$ are:

three months ending: January 31, 2007 January 31, 2006
Revenue $6,892,011 $4,331,663
EBITDA 1,027,115 640,989
Net earnings 905,714 325,366
Basic earnings per share 0.02 0.01

The total year consolidated results for the fiscal year in CDN$ are:

twelve months ending: January 31, 2007 January 31, 2006
Revenue $17,793,710 $13,526,774
EBITDA 1,320,080 1,336,720
Net earnings 305,010 664,215
Basic earnings per share 0.01 0.02

Revenues for the fourth quarter of fiscal 2006/2007 grew from $4.3 million to $6.9 million, representing an increase of $2.6 million or 59% growth compared to the previous year's fourth quarter results. Net Earnings for the fourth quarter remained positive at $905,714, representing an increase of over 178% compared to the net earnings of $325,366 posted for the same period last year. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) also increased from $640,989 to $1,027,115 over the same period.

For the year, the company's revenues increased on a consolidated basis from $13.5 million the previous year to $17.8 million this year, representing an annual growth of approximately 32%. The company recorded net earnings for the full year of $305,010 or $0.01 per common share. EBITDA decreased slightly from $1,336,720 to $1,320,080.

As of January 31, 2007, the company had $3.2 million in cash and short term investments, compared to $3.0 million in the previous year and also had $500,000 in unused credit facilities. By the end of the year, the company had $3.9 million in working capital, down slightly from the $4.0 million reported at the end of the previous year.

Ron Clifton, President and CEO of IDC commented, "I am very pleased to report a strong fourth quarter finish leading to another year of profitability-our third in a row following the high-tech downturn that had such a profound impact on IDC and many other companies in the industry. We had excellent revenue growth with an increase of more than 30% over last year and more than double our revenues of just four years ago. This growth can be attributed to the added business of our new PROFLine subsidiary and the subsequent strengthening of our European business as well as the launch of a number of critical new products and applications last year. Combined with our strong working capital and backlog, these results position us well moving forward."

Highlights of the quarter and the year included:

- Launching of DVB-S2 products: DVB-S2 is the next-generation open standard that offers increased performance and cost savings enabling cutting-edge applications such as IPTV, HDTV, and digital cinema. In 2006 IDC won important new business and also converted existing customer networks to DVB-S2. The vast majority of product shipped in the second half of the year was DVB-S2 enabled. In addition, IDC was awarded a new R&D project funded by the European Space Agency (ESA) to develop next-generation ultra high-performance DVB-S2 technology.

- Launching RoHS-compliant products: In 2006, the new Restrictions on Hazardous Substances (RoHS)-with implications for the entire electronics equipment industry-came into effect in Europe. All of IDC's main product lines are now RoHS compliant. This investment in research and development positions IDC well going forward as the rest of the world follows Europe's lead on this important environmental initiative.

- Major new business and repeat orders: with customers such as the Canadian Forces Radio & Television network's multiyear broadcast services contract (currently entering its eighth year); Westwood One's new IP-based radio network; and Instituto Mexicano de Radio (IMER) the national radio network in Mexico. IDC provided head-end uplink equipment, engineering services, and the first DVB-S2 receivers for SES Americom's IP Prime IPTV service; and for Reuters provided a new DVB-S2 network across Europe as well as another new network across Africa. Access IT-IDC's premiere digital cinema customer-upgraded its network to DVB-S2 and expanded to hundreds of sites across the US. New orders for IDC's Datacast XD Content Management and Distribution system came from SHIN Broadband for a video-on-demand (VOD) consumer set-top-box application in Asia, and for a new digital signage network in Mexico.

- PROFline: launched new products to meet the RoHS requirements and provide the latest in next-generation audio decoding for professional radio networks - winning new business for next-generation networks with TALPA Radio in the Netherlands, Radio Contact in Belgium and Terracom in Sweden. PROFline also brought in important new business expanding the international broadcast network of a major customer Radio Maria in Italy.

Ron Clifton concluded, "Going forward, we will continue the momentum with the new DVB-S2 line as well as our ongoing products and projects. We plan to maintain our strong R&D focus and broaden the DVB-S2 line to include new low-cost receivers as well as more high-end models that will expand the performance range. I'm confident this strategy will continue to pay off for IDC both in terms of overall growth and increased shareholder value."

About International Datacasting Corp.:

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 100 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.

(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.

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