International Datacasting Corporation Announces Fourth Quarter and Fiscal Year-End 2012 Results

OTTAWA, ONTARIO--(Marketwire - April 25, 2012) - International Datacasting Corporation (TSX:IDC), a global leader in digital content distribution for the world's premiere broadcasters, today announced results for the fourth quarter and fiscal year-end periods ended January 31, 2012.

Revenue decreased 44% in the fourth quarter versus the same quarter in 2011, to $6.4 million, and EBITDA¹ decreased to a loss of $1.5 million. Excluding the impact of changes in foreign exchange from the strengthening of the Canadian dollar, IDC's revenues decreased by 45% in fourth quarter fiscal 2012 versus the same fiscal quarter in 2011.

International Datacasting's fiscal year-end 2012 revenue was $29.4 million, down 15% from fiscal 2011, and down 12% excluding the impact of foreign exchange.

4Q Fiscal 2012 Financial Summary

• Revenue was $6.4 million, down 44%, compared to $11.5 million in 4Q fiscal 2011, and down 45% excluding the impact of changes in foreign exchange from the strengthening of the Canadian dollar.
• Normalized gross profit margin, excluding an inventory write-off of $700,000 in 4Q fiscal 2012, decreased to 36% from 42% in 4Q fiscal 2011 due to product mix in the IDC Systems Segment.
• EBITDA¹ decreased to a loss of $1.5 million or ($0.03) per share, compared to earnings of $1.3 million or $0.02 per share in 4Q fiscal 2011.
• Net earnings decreased by $3.3 million to a loss of $1.7 million, or ($0.03) per share, compared to net earnings of $1.6 million, or $0.03 per share, in 4Q fiscal 2011.

Fiscal Year-End 2012 Financial Summary

• Revenue was $29.4 million, down 15%, as compared to $34.4 million for fiscal 2011, and down 12% excluding changes in foreign exchange.
• Gross profit was $11.3 million, or 38% of revenues compared to 43% in fiscal 2011.
• EBITDA¹ decreased by $3.0 million to a loss of $1.4 million or ($0.02) per share, as compared to earnings of $1.6 million or $0.03 per share for fiscal 2011.
• Net earnings decreased by $3.3 million to a loss of $2.3 million, or ($0.04) per share, compared to net earnings of $1.0 million, or $0.02 per share, for fiscal 2011.

"IDC has been in a steady process of streamlining its operations over the past two years. More importantly, through the introduction of new products and technologies IDC has been seeking to expand its addressable markets from its current base to include markets with more breadth and scope. This is not to abandon historic markets and customer relationships, but to build upon our existing strengths to increase the addressable market reach of IDC. The introduction of two new major market thrusts launched at the recent National Association of Broadcasters' Convention marks the beginning of the next phase in this transformation of IDC. This long-term transformation is being executed with the objective of launching IDC into markets capable of driving sustained growth.

Fiscal 2012 was a disappointing year from a financial perspective. This was due in part to the effect of a significant write down in the value of inventory associated with legacy businesses of IDC, as well softening in our legacy markets. However, seeds were planted which we expect will germinate in fiscal 2013 and create a much more competitive and successful IDC," stated Frederick Godard, President and CEO, IDC. "Fortunately, IDC remains well capitalized with a solid working capital base as we continue to invest in new product introductions and enter into new markets. With a renewed culture of innovation, IDC is well positioned to take advantage of growth opportunities in emerging geographic markets, and we remain focused on innovation in global broadcast content distribution."

Conference Call

A conference call will be held on Thursday, April 26, 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 3893519. A taped replay will be available until April 27, 2012 at 10:00 a.m. ET by dialing 1-800-408-3053 and reference the pass code 5190705. A live audio webcast of the conference call will be available at http://www.gowebcasting.com/3260. The webcast will be archived here for 365 days.

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 29, 2011 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 year ended January 31, 2012, FY2012 will be available at http://www.sedar.com/ or on the Investor Information section of IDC's website at www.datacast.com.

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, distance learning, 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.

(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
Consolidated Statements of Financial Position as at
		January 31, 2012				January 31, 2011			February 1, 2010
ASSETS
Current Assets
	Cash	$	4,914,766		$	6,702,624		$	4,675,868
	Short-term investments		2,336,800			-			-
	Accounts receivable		4,673,727			10,616,428			6,171,603
	Inventories		4,247,470			3,774,384			4,754,764
	Prepaid expenses and other assets - current portion		722,882			962,544			527,228
Total Current Assets			16,895,645			22,055,980			16,129,463
Non-Current Assets
	Prepaid expenses and other assets - long-term portion		631,607			105,090			142,102
	Equipment		1,852,739			2,140,448			2,724,108
	Deferred taxes		2,800,000			2,800,000			2,100,000
	Intangible assets		-			232,625			542,792
Goodwill			-			-			399,925
Total Non-Current Assets			5,284,346			5,278,163			5,908,927
Total Assets		$	22,179,991		$	27,334,143		$	22,038,390
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
	Accounts payable and accrued liabilities	$	3,128,708		$	5,401,092		$	3,541,920
	Provisions		660,474			658,206			639,422
	Customer deposits		755,761			2,308,114			78,745
	Other liabilities		-			-			1,814
	Obligations under capital leases - current portion		36,714			53,215			83,542
	Deferred revenue		882,827			594,412			514,096
Total Current Liabilities			5,464,484			9,015,039			4,859,539
Non-Current Liabilities
	Obligations under capital leases		3,002			39,716			92,930
	Deferred tax liability		-			46,525			108,558
Total Non-Current Liabilities			3,002			86,241			201,488
Total Liabilities			5,467,486			9,101,280			5,061,027
Shareholders' Equity
	Capital stock		23,977,481			23,229,720			22,982,727
	Contributed surplus		3,212,923			3,166,982			2,954,614
	Accumulated other comprehensive loss		(229,729	)		(229,729	)		-
	Accumulated deficit		(10,248,170	)		(7,934,110	)		(8,959,978	)
Total Shareholders' Equity			16,712,505			18,232,863			16,977,363
Total Liabilities and Shareholders' Equity		$	22,179,991		$	27,334,143		$	22,038,390

International Datacasting Corporation
Consolidated Statements of (Loss) Earnings
			Twelve months ended						Three months ended
		January 31, 2012			January 31, 2011			January 31, 2012			January 31, 2011
Revenue		$	29,406,231		$	34,410,711		$	6,416,655		$	11,541,912
Cost of revenue			18,092,651			19,547,031			4,795,082			6,691,930
Gross profit			11,313,580			14,863,680			1,621,573			4,849,982
Operating expenses
Selling, general and administrative			8,244,360			9,461,012			2,215,155			2,454,290
Research and development, net of investment tax credits			5,547,888			5,277,034			1,206,800			1,421,580
Foreign exchange gain			(106,882	)		(313,332	)		(118,187	)		(51,824	)
Goodwill impairment			-			102,925			-			102,925
			13,685,366			14,527,639			3,303,768			3,926,971
Operating (loss) income			(2,371,786	)		336,041			(1,682,195	)		923,011
Interest (expense) income
	Long-term		(7,722	)		(12,835	)		(1,923	)		(2,749	)
	Short-term		45,941			32,513			20,443			9,371
(Loss) earnings before income taxes			(2,333,567	)		355,719			(1,663,675	)		929,633
Income tax recovery			19,507			670,149			(27,187	)		695,575
Net (loss) earnings		$	(2,314,060	)	$	1,025,868		$	(1,690,862	)	$	1,625,208

International Datacasting Corporation
Consolidated Statements of Cash Flows
				Twelve months ended						Three months ended
			January 31, 2012			January 31, 2011				January 31, 2012		January 31, 2011
Operating Activities
	Net (loss) earnings		$	(2,314,060	)	$	1,025,868		$	(1,690,862	)	$	1,625,208
	Add items not requiring an outlay of cash:
		Goodwill impairment		-			102,925			-			102,925
		Intangible assets impairment		-			203,375			-			203,375
		Amortization		956,469			1,289,176			185,451			331,383
		Deferred taxes		(46,525	)		(762,033	)		-			(715,506	)
		Stock-based compensation		93,933			290,762			(33,265	)		59,842
Cash (applied to) provided by operations before changes in working capital				(1,310,183	)		2,150,073			(1,538,676	)		1,607,227
Net change in operating components of working capital				2,267,326			113,243			1,605,984			(3,140,293	)
Cash provided by operating activities				957,143			2,263,316			67,308			(1,533,066	)
Investing activities
Short-term investments				(2,336,800	)		-			(2,336,800	)		-
Additions to equipment				(502,755	)		(321,618	)		(48,092	)		(119,860	)
Cash applied to investing activities				(2,839,555	)		(321,618	)		(2,384,892	)		(119,860	)
Financing activities
Repayments of obligations under capital leases				(53,215	)		(83,541	)		(11,136	)		(19,728	)
Issue of common shares, net of issue costs				158,913			168,599			7,776			71,562
Shares purchased under normal course issuer bid				(11,144	)		-			(11,144	)		-
Cash provided by financing activities				94,554			85,058			(14,504	)		51,834
(Decrease) increase in cash during the period				(1,787,858	)		2,026,756			(2,332,088	)		(1,601,092	)
Cash - Beginning of period				6,702,624			4,675,868			7,246,854			8,303,716
Cash - End of period			$	4,914,766		$	6,702,624		$	4,914,766		$	6,702,624
Interest paid				7,722			12,835			1,923			2,749
Income taxes paid				14,785			139,010			-			-