SOURCE: International Datacasting Corporation

International Datacasting Corporation

February 22, 2016 17:00 ET

International Datacasting Corporation Announces Update on Execution of Business Plan

OTTAWA, ON--(Marketwired - February 22, 2016) - International Datacasting Corporation ("IDC") (TSX VENTURE: IDC), a technology provider for the world's premiere broadcasters, today announces an update in connection with the execution of its business strategy.

As previously announced, management expected to close certain medium and large-sized LASER MPS deals by the end of Q4 of Fiscal 2016. While further progress has been made, IDC did not succeed in closing a LASER MPS deal during the fourth quarter due to delays caused by prospective customers. Timing for closing these deals remains uncertain. Consequently, the Q4 Fiscal 2016 revenue will be significantly below management expectations and as a result IDC anticipates reporting a much higher than anticipated net loss for the last quarter of Fiscal 2016.

In light of the poor Q4 results, the Board has commenced a formal process to explore strategic alternatives with a view to enhancing shareholder value. Such strategic alternatives may include, but are not limited to, a corporate sale, merger or other business combinations, a sale of a material portion of IDC's assets or other transaction. There can be no assurance that the Board's process will result in any specific action. The Strategy Committee of the Board, which is comprised entirely of independent directors, will consider the relative merits of the strategic alternatives and provide advice and make recommendations to the Board regarding any potential transaction. During this period, IDC will also initiate further cost reductions to reduce the monthly cash burn rate. 

IDC remains committed to servicing its loyal customers and to pursuing existing sales opportunities, including LASER MPS.

About International Datacasting Corporation:

International Datacasting Corporation (TSX VENTURE: IDC) is a global technology provider for the world's premiere broadcasters in radio, television, data and digital cinema. IDC's products and solutions are in demand for radio and television networks, targeted ad insertion, digital cinema, 3D live events, VOD, and IPTV. IDC is headquartered in Ottawa, Canada. For more information visit: www.datacast.com.

Forward-Looking Statements:

This press release contains certain information that may constitute "forward-looking information" and/or "forward-looking statements" within the meaning of applicable Canadian securities laws including, without limitation, statements with respect to management's expectations regarding its results of operations, performance (both operational and financial) and business prospects and opportunities, as well as IDC's strategic review process and its plans to reduce monthly cash burn rate. All forward looking information and forward-looking statements are necessarily based on a number of estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material assumptions used to develop the forward looking-statements made in this release include assumptions related to the ability of IDC to identify timely and reasonable strategic alternatives, as well as the ability to close certain medium and large-sized LASER MPS deals. As noted above, there can be no assurance that the strategic review process will result in any transaction. Except as required by applicable securities law, IDC does not currently intend to disclose further developments with respect to this process, unless and until its Board approves a specific transaction or otherwise concludes the review of strategic alternatives.

All statements other than statements which are reporting results as well as statements of historical fact are forward-looking statements that may involve a number of known and unknown risks, uncertainties and other factors; many of which are beyond the ability of IDC to control or predict.

Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "design", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that might cause actual results to differ materially include, but are not limited to: certain assumptions with respect to the preliminary Q4 financial results could prove to be inaccurate, IDC's may be unable to successfully implement its cost reductions, cost reductions may not reduce the monthly cash burn rate to the extent anticipated, the outcome of the Company's ongoing strategic review process is uncertain and IDC's may be unsuccessful in pursuing sales opportunities.

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 and which are available on SEDAR at www.sedar.com, including, without limitation, IDC's Annual Information Form and MD&A for the year ended January 31, 2015, each dated April 29, 2015.

Except as expressly required by applicable law, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are provided to assist external stakeholders in understanding IDC's expectations as at the date of this release and may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on such statements. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • CONTACT:
    Steve Archambault
    Executive VP & CFO
    International Datacasting Corporation
    +1 613 596 4120 Ext. 2296
    sarchambault@datacast.com