OTTAWA, ONTARIO--(Marketwired - Feb. 5, 2014) - International Datacasting Corporation (TSX:IDC) ("IDC" or the "Company") today announced that the Canadian Forces Radio & Television (CFRT) broadcast service will be discontinued at the start of April. The CFRT service has been delivered to deployed Canadian Armed Forces (CAF) members in Afghanistan and other missions since 1999. This service has been delivered by IDC working in close partnership with the Canadian Forces Morale and Welfare Services (CFMWS).
This decision reflects the reduction in the number of CAF members deployed, changing demands for morale and welfare services, and advances in technology that enable alternative means of content delivery for the smaller number of deployed personnel.
IDC hopes to continue working with CFMWS in the future to provide services relevant to the current reduced deployment, and to support resumption of full services in the future if circumstances require it. However, IDC anticipates that revenues from CFRT will be substantially lower in Fiscal 2015 than in Fiscal 2014. In the first three quarters of Fiscal 2014, the CFRT broadcast services represented approximately 17% of IDC's revenues for that period.
Peter Atkinson, Brigadier General (Retired) and Senior Vice-President of Personnel Support Programs, a division of CFMWS, stated, "This decision is in no way a reflection of the outstanding services provided by IDC to the CAF. Since 1999, IDC has provided a little piece of Canada to the CAF members by providing Canadian content programming such as Hockey Night in Canada, the Grey Cup and a variety of entertainment and sports shows. CFMWS will continue to look at other avenues to provide amenities to the Canadian Armed Forces members who continue to serve our country abroad."
Doug Lowther, President and CEO of IDC, commented, "IDC has been proud to support the Canadian Forces in providing Canadian radio and television content to deployed CAF personnel over the last fifteen years. We are working closely with the forces to define means of content delivery that are cost-effective given current deployment levels, while remaining prepared to provide the full CFRT service in the future should circumstances change."
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. IDC offers a broad portfolio of advanced solutions including the STAR Pro Audio™ Solution, LASER™ Targeted Ad Insertion Platform, and the Digital Tattoo™ DTH Over IP Gateway. 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. The company has installations in over 100 countries, a service office in Taiwan, and an international network of value-added partners and resellers. 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 the Company's expectations with respect to the reduction of revenues resulting from the discontinuance of the Canadian Forces Radio & Television (CFRT) broadcast service at the end of March 2014. 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 management's perceptions of current conditions and expected future developments, 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", "hope", "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, including the STAR Pro Audio™ Solution, LASER™ Targeted Ad Insertion Platform and Digital Tattoo™ DTH Over IP Gateway; IDC's dependence on the development and growth of the satellite services market; 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.