International Datacasting Corporation Announces Record First Quarter Revenues

OTTAWA, ONTARIO--(Marketwire - June 29, 2011) - International Datacasting Corporation (TSX:IDC), a global leader in digital content distribution solutions for the world's premiere broadcasters, announced its financial results today for the first quarter of fiscal 2012, ended April 30, 2011. All figures are in Canadian dollars unless otherwise stated.

International Datacasting posted its best fiscal first quarter revenue figure ever, as it continued to deliver solid top-line growth coupled with lower year-over-year operating expenses. This resulted in a significant reduction in year-over-year losses as compared to the same quarter of fiscal 2011. Revenue increased by 55% in the period, versus the same quarter in the prior year, to $8.4 million, and EBITDA¹ increased by $1.4 million from a loss of $1.7 million to a loss of $243,494. Excluding the impact of changes in foreign exchange from the relative strengthening of the Canadian dollar, IDC's revenues grew by 63% in the first quarter vs. the same quarter in the prior year.

Financial Highlights: 1Q 2012 vs. 1Q 2011

• Revenue of $8.4 million, up 55% from $5.4 million in 1Q 2011, and up 63% excluding the changes in foreign exchange from the strengthening of the Canadian dollar. This is the highest revenue level for a fiscal first quarter in the Corporation's history.

• Gross margin decreased to 38% from 44%. Gross profit was $3.2 million. This is the highest gross profit level for a fiscal first quarter in the Corporation's history.

• Operating expenses declined by 16% from $4.3 million to $3.6 million, a decrease of $665,699.

• EBITDA¹ improved from a loss of $1.7 million to a loss of $243,494, or $0.0 per share, compared to a loss of $0.03 per share in 1Q 2011.

• Net earnings improved by $1.5 million to a loss of $510,512 or $0.01 per share, compared to a loss of $2.0 million or $0.03 per share in 1Q 2011.

IDC continues to invest in product innovation to maintain its global leadership position in digital content distribution for broadcasters. Research & Development spending increased by 9%, year-over-year due to various initiatives designed to improve the functionality and quality of our products and systems, even as total operating expenses as a whole declined by 16% year-over-year.

"While we saw some signs of an economic slowdown in the first quarter, our strong growth across the board is a testament to the quality and breadth of our global product offerings", stated Adam Adamou, IDC Executive Chairman. "We are cautiously optimistic and continue to monitor global economic developments. We expect to meet our profitability and growth expectations over the course of fiscal 2012, with the second half of the year expected to be stronger than the first half in terms of revenues and margins."

"IDC continues to focus on improvements to our core product and service offerings, as we maintain our leadership position in the key markets of audio, video and digital cinema worldwide," stated Frederick Godard, IDC President & CEO. "Through a culture of product innovation and operational efficiencies, IDC will actively seek out and exploit new business opportunities in the evolving landscape of digital content distribution."

Following finalization of the review to determine IDC's functional currency in accordance with IFRS, it was noted that there were conflicting results when looking at the primary and secondary indicators under International Accounting Standard (IAS) 21. In accordance with this Standard, management has determined that the Canadian dollar continues to be the appropriate functional currency for the Corporation.

Conference Call

A conference call will be held on Thursday, June 30, 2011 at 8:30a.m. ET to discuss this announcement. The call may be accessed by dialing 1-613-233-1979/1-866-696-5910 with the participant pass code 1220537. A taped replay will be available until July 1, 2011 at 10:00a.m. ET by dialing 1-800-408-3053 and reference pass code 2335840. To access the live webcast visit: http://www.gowebcasting.com/2487.

A complete set of Financial Statements and Management's Discussion and Analysis for the three-months ended April 30, 2011 of 1Q FY2012 will be available at www.sedar.com or on the Investor Information section of IDC's website at www.datacast.com.

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 of 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. The forward-looking statements are subject to change and IDC disclaims any intention and assumes no obligation to update or revise any forward-looking statement whether as a result of new information or events or otherwise unless required to do so by the applicable securities legislation.

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-GAAP financial measure. EBITDA is not an earnings measure recognized by GAAP 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, 2011			January 31, 2011			February 1, 2010
ASSETS
Current Assets
	Cash	$	6,840,675		$	6,702,624		$	4,675,868
	Accounts receivable		8,280,145			10,616,428			6,171,603
	Inventories		3,978,493			3,774,384			4,754,764
	Prepaid expenses and other assets - current portion		978,984			962,544			527,228
Total Current Assets			20,078,297			22,055,980			16,129,463
Prepaid expenses - long term portion			104,320			105,090			142,102
Equipment			2,086,089			2,140,448			2,724,108
Deferred taxes			2,800,000			2,800,000			2,100,000
Intangible assets			155,082			232,625			542,792
Goodwill			-			-			399,925
Total Non-Current Assets			5,145,491			5,278,163			5,908,927
Total Assets		$	25,223,788		$	27,334,143		$	22,038,390
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
	Accounts payable and accrued liabilities	$	4,989,839		$	5,401,092		$	3,541,920
	Provisions		558,699			658,206			639,422
	Customer deposits		1,175,833			2,308,114			78,745
	Other liabilities		-			-			1,814
	Obligations under capital leases - current portion		47,700			53,215			83,542
	Deferred revenue		572,063			594,412			514,096
Total Current Liabilities			7,344,134			9,015,039			4,859,539
Long Term Liabilities
	Obligations under capital leases		30,417			39,716			92,930
	Deferred tax liability		31,017			46,525			108,558
Total Non-Current Liabilities			61,434			86,241			201,488
Total Liabilities			7,405,568			9,101,280			5,061,027
Shareholders' Equity
	Capital stock		23,282,047			23,229,720			22,982,727
	Contributed surplus		3,210,524			3,166,982			2,954,614
	Accumulated other comprehensive loss		(229,729	)		(229,729	)		-
	Accumulated deficit		(8,444,622	)		(7,934,110	)		(8,959,978	)
Total Shareholders' Equity			17,818,220			18,232,863			16,977,363
Total Liabilities and Shareholders' Equity		$	25,223,788		$	27,334,143		$	22,038,390

International Datacasting Corporation
Unaudited Consolidated Statements of Loss and Comprehensive Loss
for the three months ended
			April 30, 2011			April 30, 2010
Revenue		$	8,384,946		$	5,396,056
Cost of revenue			5,188,100			3,032,070
Gross profit			3,196,846			2,363,986
Operating expenses
Selling, general and administrative			2,012,762			2,808,607
Research and development, net of investment tax credits			1,588,260			1,458,114
			3,601,022			4,266,721
Operating loss			(404,176	)		(1,902,735	)
Interest income (expense)
	Long-term		(2,694	)		(3,776	)
	Short-term		5,788			7,228
Foreign exchange loss			(124,923	)		(65,497	)
Loss before income taxes			(526,005	)		(1,964,780	)
Income tax recovery (expense)			15,493			(9,062	)
Net loss		$	(510,512	)	$	(1,973,842	)
Other comprehensive loss
Unrealized loss on translation of self sustaining
foreign operations			-			(214,344	)
Other comprehensive loss			-			(214,344	)
Comprehensive loss		$	(510,512	)	$	(2,188,186	)
Net loss per share
Basic		$	(0.01	)	$	(0.03	)
Diluted		$	(0.01	)	$	(0.03	)
Weighted average number of shares outstanding
	Basic		57,913,649			56,994,913
	Diluted		57,913,649			56,994,913

International Datacasting Corporation
Unaudited Consolidated Statements of Cash Flows
for the three months ended
				April 30, 2011			April 30, 2010
Operating Activities
	Net loss		$	(510,512	)	$	(1,973,842	)
	Add items not requiring an outlay of cash:
		Amortization		285,605			303,979
		Deferred taxes		(15,508	)		(15,508	)
		Stock-based compensation		62,369			93,508
Cash consumed by operations before changes in working capital				(178,046	)		(1,591,863	)
Net change in operating components of working capital				433,575			1,870,400
Cash provided by operating activities				255,529			278,537
Investing activities
Additions to equipment				(136,164	)		(175,480	)
Cash applied to investing activities				(136,164	)		(175,480	)
Financing activities
Repayments of obligations under capital leases				(14,814	)		(20,939	)
Issue of common shares, net of issue costs				33,500			5,500
Cash provided by (applied to) financing activities				18,686			(15,439	)
Increase in cash during the period				138,051			87,618
Cash - Beginning of period				6,702,624			4,675,868
Cash - End of period			$	6,840,675		$	4,763,486
Interest paid				2,694			3,776
Income taxes paid				14,785			139,010