International Datacasting Corporation

International Datacasting Corporation

December 05, 2007 17:00 ET

International Datacasting Corporation Announces Third Quarter Results: Continued Growth and Profitability Fueled by New Contracts

Attn: Business/High-Tech Editors

OTTAWA, ONTARIO--(Marketwire - Dec. 5, 2007) - International Datacasting Corporation, (TSX:IDC) announced its unaudited financial results for the third quarter of fiscal 2007/08. The results in CDN$ are as follows:

Three months ending October 31, 2007 October 31, 2006

Revenues: $5,828,485 $4,261,698
EBITDA: $328,324 $379,549
Net Earnings: $66,389 $69,537
Basic Earnings per share: $0.00 $0.00

Nine months ending October 31, 2007 October 31, 2006

Revenues: $17,180,343 $10,901,669
EBITDA: $1,462,628 $292,966
Net Earnings: $572,212 ($600,703)
Basic Earnings per share: $0.01 ($0.01)

Revenues for the third quarter grew from $4.3 million to $5.8 million representing an increase of $1.5 million or 37% growth compared to the same period last year. Net earnings for the second quarter are $66,389 representing a slight decrease from $69,537 last year. Earnings before interest, tax, depreciation, and amortization (EBITDA) also decreased by 13.5% from $379,549 to $328,324. In comparing year-to-date performance for the first nine months of fiscal 2007/08, revenues have grown to $17.2 million, an increase of 58% from $10.9 million for the first nine months of last year. EBITDA has also grown from $292,966 last year to $1,462,628. Net earnings for the nine months are $572,212, an increase of $1,172,916 for the same period last year

In the third quarter, the Company had a foreign exchange loss of ($477,395), bringing the total foreign exchange loss for the nine months year-to-date to ($719,084). As of October 31, 2007, the company had $1.0 million in cash compared to $1.1 million in the previous quarter and also had $1.0 million in unused credit facilities and working capital of $3,446,029.

"I am pleased to report another quarter of growth and profitability", said Ron Clifton, President and CEO of IDC. "Our year-to-date results show strong growth over last year in both top line and bottom line performance. The results were unfortunately impacted negatively by the rapid appreciation of the Canadian dollar which saw a 13% change in the quarter-something that has adversely affected many other Canadian companies recently."

Some key highlights for the third quarter include:

- A major order from CBS Westwood One - the largest radio network in the
US - to modernize its entire network with the Superflex Pro Audio suite
of products and Datacast XD Content Management and Distribution System.
The upgrade and expansion to more than 2,000 sites provides the ability
to regionalize content during national broadcasts. The upgrade provides
cost savings and improved audio quality for the listener and also
consolidates various services into a streamlined network delivering
content to 5,000 terrestrial sites.

- IDC's IPTV market penetration in North America continued to expand with
the launch of the EchoStar IPTV service in October at Telco TV conference
and trade show in Atlanta last month. Called "ViP-TV", the service from
EchoStar uses IDC's latest SuperFlex DVB receivers to deliver the service
to subscribers throughout the United States.

- SES Americom continues to expand its IP-PRIME IPTV service across the
United States. At TelcoTV, IDC receivers were showcased as SES-Americom
broadcast IP-PRIME channels throughout the event.

- IDC signed an agreement with Sensio Technologies of Montreal to develop
complete end-to-end broadcast solutions for the 3-D Digital and E-Cinema
markets. The agreement builds on the complementary leading-edge
technologies and products of the two companies.

- IDC, together with Sensio Technologies and AccessIT- the leader in
digital cinema deployments - announced the development of CineLive, an
integrated solution that delivers via satellite both 2-D and 3-D live
events to movie theatres equipped with digital cinema projectors.
CineLive was launched and demonstrated at Show East in Orlando, Florida
in October.

- At the International Broadcast Convention (IBC), held in September in
Amsterdam, IDC unveiled its new line of SuperFlex DVB-S/S2 DUO receivers.
Developed with the assistance of the European Space Agency, the DUO
features simultaneous dual carrier operation and provides enhanced
reliability and security as well as higher data throughputs. The new Duo
receiver received a TVB Europe Editor's Award for Best of IBC 2007 (TVB
Europe is a leading European magazine for the television and broadcast

- PROFline, IDC's wholly owned subsidiary in Arnhem, the Netherlands,
received new orders from TDF, the leading radio and television broadcast
company in France. PROFline also received additional orders from Radio
Maria for the continued expansion of their radio network in Latin

- IDC also successfully relocated its Ottawa-based headquarters-including
operations, manufacturing, and teleport--to a new location in the third
quarter. This move puts the company in the heart of Canada's high tech
sector and provides the IDC with better research and development and
systems integration facilities.

Ron Clifton concluded, "Overall, this was a strong quarter,. We continue to have a strong backlog-this, along with the new financing that we recently raised, positions us well moving forward"

About International Datacasting Corporation (IDC):

International Datacasting Corporation, (TSX:IDC) is a global leader in providing advanced solutions for the distribution of broadband content via satellite. IDC is at the forefront of delivering IP-based datacasting solutions via satellite and content distribution technologies with installations in more than 100 countries worldwide. IDC's products are in demand for radio and television broadcast networks, distance learning, digital signage, digital cinema, IPTV distribution and other content distribution applications. IDC is headquartered in Ottawa, Canada, operates in Europe through its wholly owned subsidiary PROFline B.V. in Arnhem, the Netherlands and has an established international network of value-added partners and distributors.

This press release contains forward-looking statements that may involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with IDC's growth, the development of the satellite datacasting market, regulatory risks, intellectual property infringement and other factors. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect IDC's financial and business results is included in the public documents IDC files from time to time with Canadian securities regulatory authorities.

Note: Use of non-GAAP Financial Information

Non-GAAP non-income is provided to enhance the overall understanding of our current financial performance and our prospects for the future. Specifically, we believe non-GAAP results provide useful information to both management and investors by excluding specific expenses we believe are not indicative of our core operating results. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles.

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