International Datacasting Corporation
TSX : IDC

International Datacasting Corporation

December 05, 2011 17:00 ET

International Datacasting Corporation Announces Third Quarter FY2012 Results

Attn: Business/High-Tech Editors

OTTAWA, ONTARIO--(Marketwire - Dec. 5, 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 nine and three month periods ended October 31, 2011. All figures are in Canadian dollars unless otherwise stated.

Financial Highlights

For the Nine Months Ending October 31 FY2012 vs. October 31 FY2011:

  • Revenue of $23.0 million vs. $22.9 million
  • Gross margins of 42% vs. 44%
  • Operating expenses of $10.4 million vs. $10.9 million
  • EBITDA1 of $81,427 vs. $370,823

For the Three Months Ending October 31 FY2012 vs. October 31 FY2011:

  • Revenue of $7.3 million vs. $8.9 million
  • Gross margins of 43% vs. 44%
  • Operating expenses of $3.4 million vs. $3.3 million
  • EBITDA1 of $12,061 versus $1.14 million

International Datacasting's revenues grew by 1% over the first nine months of the fiscal year vs. the same period in FY2011. Strong growth over the period and expansion into emerging markets in continental Africa, driven by the success of our end-to-end digital broadcast initiative offset the one-time impact of the digital cinema rollout related to the FIFA 2010 World Cup in the previous year.

"Our organic growth initiatives have been successful including recognizing revenue of over $7 million in the last twelve months from our work in Africa. Other initiatives are on the go with a heavy focus on the video space, video-on-demand, the over the top (OTT) video segment and in other global markets including ad insertion and targeted advertising," stated Adam E. Adamou, Executive Chairman. "Everyone at IDC is working hard to launch these products over the next several quarters."

"We believe there is considerable pent-up demand for the expansion of services in IDC's markets that is being frustrated by ongoing economic concerns and, as a result, very conservative business practices - including delays - among our customers. We have to be patient since the demand certainly appears to exist and the pressure to expand continues to build," said Frederick Godard, President and CEO. "Fortunately, IDC is well capitalized with a growing working capital base that is capable of weathering the present economic uncertainties until we can take advantage of these future growth possibilities."

Financial Summary & Conference Call

A summary presentation and financial analysis slideshow will be available on our website at www.datacast.com on Monday, December 5, 2011 after 5:00pm ET. A conference call will be held on Tuesday, December 6, 2011 at 8:30a.m. ET to discuss this announcement. The call may be accessed by dialing 1-613-788-3830/1-888-789-9572 with the participant pass code 4746246. A taped replay will be available until December 7, 2011 at 10:00a.m. ET by dialing 1-800-408-3053 and reference pass code 1651186. To access the live audio webcast visit: http://www.gowebcasting.com/2993. The webcast will be archived here for 365 days. Related slides and transcripts will be posted on the Investor section of the website at: www.datacast.com

A complete set of Financial Statements and Management's Discussion and Analysis for the nine and three months ended October 31, 2011 will be available at www.sedar.com and 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 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-Canadian GAAP, non-IFRS financial measure. EBITDA is not an earnings measure recognized by Canadian GAAP and 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
October 31, 2011 January 31, 2011
ASSETS
Current Assets
Cash$7,246,854 $6,702,624
Accounts receivable 6,356,938 10,616,428
Inventories 4,855,498 3,774,384
Prepaid expenses and other assets - current portion 982,071 962,544
Total Current Assets 19,441,361 22,055,980
Non-Current Assets
Prepaid expenses and other assets - long term portion 641,049 105,090
Equipment 1,974,430 2,140,448
Deferred taxes 2,800,000 2,800,000
Intangible assets - 232,625
Total Non-Current Assets 5,415,479 5,278,163
Total Assets$24,856,840 $27,334,143
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities$3,762,715 $5,401,092
Provisions 563,109 658,206
Customer deposits 1,214,094 2,308,114
Obligations under capital leases - current portion 38,963 53,215
Deferred revenue 826,070 594,412
Total Current Liabilities 6,404,951 9,015,039
Non-Current Liabilities
Obligations under capital leases 11,889 39,716
Deferred tax liability - 46,525
Total Non-Current Liabilities 11,889 86,241
Total Liabilities 6,416,840 9,101,280
Shareholders' Equity
Capital stock 24,014,114 23,229,720
Contributed surplus 3,212,923 3,166,982
Accumulated other comprehensive loss (229,729) (229,729)
Accumulated deficit (8,557,308) (7,934,110)
Total Shareholders' Equity 18,440,000 18,232,863
Total Liabilities and Shareholders' Equity$24,856,840 $27,334,143
International Datacasting Corporation
Unaudited Consolidated Statements of (Loss) Earnings and Comprehensive (Loss) Income
For the Nine Months Ended For the Three Months Ended
October 31, 2011 October 31, 2010 October 31, 2011 October 31, 2010
Revenue$22,989,576 $22,868,799 $7,254,171 $8,901,659
Cost of revenue 13,297,569 12,855,101 4,113,037 4,995,470
Gross profit 9,692,007 10,013,698 3,141,134 3,906,189
Operating expenses
Selling, general and administrative 6,029,205 7,006,722 2,003,991 2,138,872
Research and development, net of investment tax credits 4,341,088 3,855,454 1,346,790 1,154,647
10,370,293 10,862,176 3,350,781 3,293,519
Operating (loss) income (678,286) (848,478) (209,647) 612,670
Interest (expense) income
Long-term (5,799) (10,086) (1,474) (4,226)
Short-term 25,498 23,142 12,222 13,244
Foreign exchange (loss) gain (11,305) 261,508 (17,428) 220,399
(Loss) earnings before income taxes (669,892) (573,914) (216,327) 842,087
Income tax recovery (expense) 46,694 (25,426) 15,692 15,276
Net (loss) earnings$(623,198)$(599,340)$(200,635)$857,363
Other comprehensive loss
Unrealized loss on translation of self sustaining foreign operations - (229,729) - -
Other comprehensive loss - (229,729) - -
Comprehensive (loss) income$(623,198)$(829,069)$(200,635)$857,363
Net (loss) earnings per share
Basic$(0.01)$(0.01)$(0.00)$0.01
Diluted$(0.01)$(0.01)$(0.00)$0.01
Weighted average number of shares outstanding
Basic 59,018,768 57,393,701 60,410,946 57,241,823
Diluted 59,018,768 57,393,701 60,410,946 57,241,823
International Datacasting Corporation
Unaudited Consolidated Statements of Cash Flows
For the Nine Months Ended For the Three Months Ended
October 31, 2011 October 31, 2010 October 31, 2011 October 31, 2010
Operating Activities
Net (loss) earnings$(623,198)$(599,340)$(200,635)$857,363
Add items not requiring an outlay of cash:
Amortization 771,018 957,793 239,136 304,640
Deferred taxes (46,525) (46,527) (15,508) (15,510)
Stock-based compensation 127,198 230,920 20,705 48,210
Cash provided by operations before changes in working capital 228,493 542,846 43,698 1,194,703
Net change in operating components of working capital 661,342 3,253,536 645,951 (542,465)
Cash provided by operating activities 889,835 3,796,382 689,649 652,238
Investing activities
Additions to equipment (454,663) (201,758) (121,448) 6,513
Cash applied to investing activities (454,663) (201,758) (121,448) 6,513
Financing activities
Repayments of obligations under capital leases (42,079) (63,813) (13,780) (21,605)
Issue of common shares, net of issue costs 151,137 97,037 1,375 61,239
Cash provided by (applied to) financing activities 109,058 33,224 (12,405) 39,634
Increase in cash during the period 544,230 3,627,848 555,796 698,385
Cash - Beginning of period 6,702,624 4,675,868 6,691,058 7,605,331
Cash - End of period$7,246,854 $8,303,716 $7,246,854 $8,303,716
Interest paid 5,799 10,086 1,474 4,226
Income taxes paid 14,785 139,010 - -

Contact Information

  • International Datacasting Corporation
    Christine Rozak
    Director, Marketing and Communications
    613-596-4120
    crozak@datacast.com