OTTAWA, ONTARIO--(Marketwire - June 5, 2012) - International Datacasting Corporation (TSX:IDC), a global leader in digital content distribution for the world's premiere broadcasters, today announced results for the first quarter fiscal 2013 period ended April 30, 2012.
The Corporation's consolidated revenue for first quarter fiscal 2013 was $9.7 million, an increase of 16% from $8.4 million in first quarter fiscal 2012. When excluding the impact of foreign exchange, revenue increased by 14% in first quarter fiscal 2013 compared to first quarter fiscal 2012. EBITDA1 improved to a loss of ($63,350) versus a loss of ($243,494) in the first quarter fiscal 2012.
Financial Highlights
For the Three Months Ended April 30 FY2013 vs. April 30 FY2012
- Revenue was $9.7 million, an increase of 16%, compared to $8.4 million in 1Q fiscal 2012, and up 14% excluding the impact of changes in foreign exchange from the weakening of the Canadian dollar.
- Gross margin, as a percentage of revenue, decreased from 38% in 1Q fiscal 2012 to 28% in 1Q fiscal 2013.
- Operating expenses decreased 23% to $2.9 million in 1Q fiscal 2013 from $3.7 million in 1Q fiscal 2012.
- EBITDA1 improved to a loss of ($63,350), or ($0.00) per share, compared to a loss of ($243,494), or ($0.00) per share in 1Q fiscal 2012.
- Net loss decreased by 59% to ($207,203), or ($0.00) per share, in 1Q fiscal 2013, compared to a net loss of ($510,512), or ($0.01) per share, in 1Q fiscal 2012.
For the Three Months Ended April 30 FY2013 vs. January 31 FY2012:
In first quarter fiscal 2013, the Corporation recorded a 66% increase in gross profit over fourth quarter fiscal 2012.
- Revenue increased by 51% to $9.7 million vs. $6.4 million in 4Q fiscal 2012.
- Gross profit increased by 66% to $2.7 million from $1.6 million in 4Q fiscal 2012.
- Operating expenses decreased 13% to $2.9 million from $3.3 million in 4Q fiscal 2012.
- EBITDA1 improved to a loss of ($63,350), or ($0.00) per share, compared to a loss of ($1.5 million), or ($0.03) per share, in 4Q fiscal 2012.
- Net loss decreased by 88% to a loss of ($207,203), or ($0.00) per share, compared to net loss of ($1.7 million), or ($0.03) per share, in 4Q fiscal 2012.
Revenues for the IDC Products segment decreased 40% from $5.1 million to $3.1 million from first quarter fiscal 2012 to first quarter fiscal 2013. The decrease in revenue is attributable to the fulfilment of a large radio order in first quarter fiscal 2012.
Revenues for the IDC Systems segment increased 104% from $3.2 million in first quarter fiscal 2012 to $6.6 million in first quarter fiscal 2013. The increase in IDC Systems revenue is attributable to the continued roll-out of the Direct-to-Home Broadcasting (DTH) project in Kenya announced in fiscal 2011.
"Whereas I am pleased with the renewal of the CFRT contract announced in March, 2012 and the orders from the Wananchi Group announced in February, 2012, our performance in the Products Group is a focus for improvement. IDC's management and Board have been working to improve this performance in an effort to make Fiscal 2013 a year of transition for IDC as the company works at realigning its cost structure and executing on a new market and product strategy. Numerous steps in this respect have been taken so far, the benefits of which we believe will start to be seen in the near future. Our goal for the Products Group is sustainable profitability," stated Frederick Godard, President and CEO, IDC.
"IDC's strategy will continue to focus on existing market niches at the same time as it works at developing new market opportunities. An embodiment of that strategy was the recent launches of both IDC LASER™ and Digital Tattoo™ which target significantly larger market niches than previously. We will continue to work towards expanding our geographic reach. For example, we have recently announced new leadership and focus on the Asian markets. Finally, we have recently undertaken a restructuring aimed at realigning our cost structure and resource requirements in light of our new market/product strategy and the current economic circumstances."
Conference Call
A conference call will be held on Wednesday, June 6, 2012 at 8:30 a.m. ET to discuss this announcement. The call may be accessed by dialing 1-613-788-3830 / 1-888-789-9572 with the pass code 1746780. A taped replay will be available until June 7, 2012 at 10:00 a.m. ET by dialing 1-800-408-3053 and reference the pass code 1689868. A live audio webcast of the conference call will be available at http://www.gowebcasting.com/3364. The webcast will be archived here for 365 days.
About International Datacasting Corporation (IDC):
International Datacasting Corporation (TSX:IDC) is a global leader in digital content distribution for the world's premiere broadcasters in radio, television and digital cinema. IDC offers a broad portfolio of advanced solutions including Pro Audio, Pro Video, Pro Cinema and Pro Data for implementing broadcast content contribution and distribution applications. IDC's solutions and IDC Systems are in demand for radio and television networks, digital cinema, 3D live events, ad insertion, satellite news gathering, sport contribution, digital signage, and IPTV among others. IDC is headquartered in Ottawa, Canada, with regional offices in Arnhem, the Netherlands and in San Diego, California. IDC has installations in over 100 countries and service offices in Australia, Singapore and China with an international network of value-added partners and distributors.
Forward-Looking Statements
This release may contain forward-looking statements reflecting IDC's objectives, estimates and expectations. Such statements may be marked by the use words such as "believe", "anticipate", "estimate", "looking ahead", "outlook" and "expect" as well as the conditional or future tense. Such statements involve risks and uncertainties and future results may differ materially from the Corporation's expectations. Factors that might cause a material difference include, but are not limited to, competitive developments, risks associated with IDC's growth, risks associated with any past or future acquisitions or divestitures, the development of the satellite datacasting market, regulatory risks, intellectual property infringement and other factors. Any forward-looking statements are provided to assist external shareholders in understanding IDC's expectations as at the date of this release and may not be suitable for other purposes. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof, except as expressly required by law. More detailed information about potential factors that could affect IDC's financial and business results is included in IDC's Annual Information Form dated April 30, 2012 and the other public documents IDC files from time to time with Canadian securities regulatory authorities.
A complete set of financial statements and management's discussion and analysis for the period ended April 30, 2012, FY2013 will be available at http://www.sedar.com/ or on the Investor Information section of IDC's website at www.datacast.com.
| (1) | Earnings before interest, taxes, depreciation and amortization ("EBITDA") are a non-IFRS financial measure. EBITDA is not an earnings measure recognized by IFRS and does not carry standard prescribed significance. Our method for calculating EBITDA may differ from that used by other companies that use the same designation and the reader is advised that EBITDA should not be substituted for determining net income as an indicator of operating results or as a substitute for cash flows from operating and investing activities. |
| International Datacasting Corporation | ||||||||
| Unaudited Consolidated Statements of Financial Position as at | ||||||||
| April 30, 2012 | January 31, 2012 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 4,828,327 | $ | 4,914,766 | ||||
| Short-term investments | 2,308,000 | 2,336,800 | ||||||
| Accounts receivable | 4,845,965 | 4,673,727 | ||||||
| Inventories | 3,647,821 | 4,247,470 | ||||||
| Prepaid expenses and other assets - current portion | 628,714 | 722,882 | ||||||
| Total Current Assets | 16,258,827 | 16,895,645 | ||||||
| Non-Current Assets | ||||||||
| Prepaid expenses and other assets - long-term portion | 616,236 | 631,607 | ||||||
| Equipment | 1,771,744 | 1,852,739 | ||||||
| Deferred taxes | 2,800,000 | 2,800,000 | ||||||
| Total Non-Current Assets | 5,187,980 | 5,284,346 | ||||||
| Total Assets | $ | 21,446,807 | $ | 22,179,991 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 3,066,115 | $ | 3,128,708 | ||||
| Provisions | 767,794 | 660,474 | ||||||
| Customer deposits | 271,336 | 755,761 | ||||||
| Obligations under capital leases - current portion | 30,416 | 36,714 | ||||||
| Deferred revenue | 809,985 | 882,827 | ||||||
| Total Current Liabilities | 4,945,646 | 5,464,484 | ||||||
| Non-Current Liabilities | ||||||||
| Obligations under capital leases | - | 3,002 | ||||||
| Total Non-Current Liabilities | - | 3,002 | ||||||
| Total Liabilities | 4,945,646 | 5,467,486 | ||||||
| Shareholders' Equity | ||||||||
| Capital stock | 23,968,522 | 23,977,481 | ||||||
| Contributed surplus | 3,217,741 | 3,212,923 | ||||||
| Accumulated other comprehensive loss | (229,729 | ) | (229,729 | ) | ||||
| Accumulated deficit | (10,455,373 | ) | (10,248,170 | ) | ||||
| Total Shareholders' Equity | 16,501,161 | 16,712,505 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 21,446,807 | $ | 22,179,991 | ||||
| International Datacasting Corporation | ||||||||
| Unaudited Consolidated Statements of (Loss) and Comprehensive (Loss) For the three months ended | ||||||||
| April 30, 2012 | April 30, 2011 | |||||||
| Revenue | $ | 9,691,101 | $ | 8,384,946 | ||||
| Cost of revenue | 7,007,168 | 5,188,100 | ||||||
| Gross profit | 2,683,933 | 3,196,846 | ||||||
| Operating expenses | ||||||||
| Selling, general and administrative | 1,717,082 | 2,012,762 | ||||||
| Research and development, net of investment tax credits | 1,251,424 | 1,588,260 | ||||||
| Foreign exchange (gain) loss | (83,525 | ) | 124,923 | |||||
| Total operating expenses | 2,884,981 | 3,725,945 | ||||||
| Operating (loss) | (201,048 | ) | (529,099 | ) | ||||
| Interest (expense) income | ||||||||
| Long-term | (1,102 | ) | (2,694 | ) | ||||
| Short-term | (4,284 | ) | 5,788 | |||||
| (Loss) before income taxes | (206,434 | ) | (526,005 | ) | ||||
| Income tax (expense) recovery | (769 | ) | 15,493 | |||||
| Net (loss) | $ | (207,203 | ) | $ | (510,512 | ) | ||
| Other comprehensive (loss) | - | - | ||||||
| Comprehensive (loss) | $ | (207,203 | ) | $ | (510,512 | ) | ||
| Net (loss) per share | ||||||||
| Basic | $ | (0.00 | ) | $ | (0.01 | ) | ||
| Diluted | $ | (0.00 | ) | $ | (0.01 | ) | ||
| Weighted average number of | ||||||||
| shares outstanding | ||||||||
| Basic | 58,384,490 | 57,913,649 | ||||||
| Diluted | 58,384,490 | 57,913,649 | ||||||
| International Datacasting Corporation | |||||||||
| Unaudited Consolidated Statements of Cash Flows | |||||||||
| For the three months ended | |||||||||
| April 30, 2012 | April 30, 2011 | ||||||||
| Operating Activities | |||||||||
| Net (loss) | $ | (207,203 | ) | $ | (510,512 | ) | |||
| Add items not requiring an outlay of cash: | |||||||||
| Amortization | 137,698 | 285,605 | |||||||
| Deferred taxes | - | (15,508 | ) | ||||||
| Fair value losses on financial assets at fair value through profit and loss | 28,800 | - | |||||||
| Stock-based compensation | 7,396 | 62,369 | |||||||
| Cash applied to operations before changes in working capital | (33,309 | ) | (178,046 | ) | |||||
| Net change in operating components of working capital | 35,601 | 433,575 | |||||||
| Cash provided by operating activities | 2,292 | 255,529 | |||||||
| Investing activities | |||||||||
| Additions to equipment | (67,894 | ) | (136,164 | ) | |||||
| Cash applied to investing activities | (67,894 | ) | (136,164 | ) | |||||
| Financing activities | |||||||||
| Repayments of obligations under capital leases | (9,300 | ) | (14,814 | ) | |||||
| Issue of common shares, net of issue costs | 4,480 | 33,500 | |||||||
| Shares purchased under normal course issuer bid | (16,017 | ) | - | ||||||
| Cash (applied to) provided by financing activities | (20,837 | ) | 18,686 | ||||||
| (Decrease) increase in cash during the period | (86,439 | ) | 138,051 | ||||||
| Cash - Beginning of period | 4,914,766 | 6,702,624 | |||||||
| Cash - End of period | $ | 4,828,327 | $ | 6,840,675 | |||||
| Interest paid | 1,102 | 2,694 | |||||||
| Income taxes paid | 39,287 | 14,785 | |||||||
Contact Information:
Christine Rozak
Director of Marketing and Communications
613-596-4120 x 2215
crozak@datacast.com