December 11, 2012 at 17:00 PM EST
International Datacasting Corporation Announces Third Quarter FY2013 Financial Results
Attn: Business/High-Tech Editors

OTTAWA, ONTARIO -- (Marketwire) -- 12/11/12 -- 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 three and nine month periods ended October 31, 2012. All figures are in Canadian dollars unless otherwise stated.


Financial Highlights:
(In millions except for Gross Margins, Net Earnings per share)

                                 Three Months Ended       Nine Months Ended
                                        October 31,             October 31,
                                   2012        2011        2012        2011
                            ------------------------------------------------
                            ------------------------------------------------
Revenue                       $     7.1   $     7.3   $    23.1   $    23.0
Gross Profit                  $     3.1   $     3.1   $     8.7   $     9.7
Gross Margins                        44%         43%         38%         42%
Operating Expenses            $     2.6   $     3.4   $     8.7   $    10.4
Adjusted EBITDA (1)           $     0.8   $     0.1   $     1.4   $     0.1
Net Earnings                  $     0.6   $    (0.2)  $       -   $    (0.6)
Net Earnings per share        $    0.01   $       -   $       -   $   (0.01)
                            ------------------------------------------------
                            ------------------------------------------------



(1) Adjusted earnings before income taxes, depreciation and amortization ("
Adjusted EBITDA") is a non-GAAP financial measure. The reconciliation of
Adjusted EBITDA to Net Income (Loss) is provided at the end of this release.

For the third quarter of fiscal 2013, total revenue was $7.1 million, down 2% from $7.3 million in the prior year. IDC Systems revenue declined 54%, while IDC Products revenue increased by 24%.

This increase in revenues from the IDC Products segment was driven by higher sales for our SuperFlex™ and STAR Pro Audio product lines resulting from large contracts in France and in Thailand. The decline in revenues from the IDC Systems segment was largely due to the completion of the first phase roll-out of the Direct-to-Home (DTH) Broadcasting project in Kenya in the first quarter of fiscal 2013.

IDC generated positive adjusted EBITDA of $782,000 during the current quarter, up from $59,000 from the comparable prior period. This improvement in EBITDA was largely due to lower operating expenses including a 19% reduction in Selling, General and Administration and a 32% decrease in Research and Development costs.

"IDC is actively reviewing and revising our global sales and distribution strategy," stated Del Lippert, Interim CEO and Chairman of the Board. "For example, our new Digital Tattoo™ offering is a prime DTH and IPTV product that is very relevant to emerging markets such as Asia and Africa. By reallocating and expanding key resources to meet the needs of Master Distributors and OEM customers in these target regions, we believe that we can directly enhance our market position and in turn stimulate the growth that our shareholders expect from IDC."

"We are pleased with the progress made in Q3 FY2013. Delivering solid revenue and margins combined with reduced operating costs translated to a net profit in the quarter and break-even for the first nine months of the fiscal year 2013," stated Rick Clements, Chief Financial Officer, IDC.

Financial Summary & Conference Call

This announcement will be followed by a Management conference call at 8:30 a.m. ET on Wednesday, December 12, 2012, to discuss the results, and to respond to questions from investors.

Del Lippert, IDC's Interim CEO, invites all interested parties to participate in the conference call.

CONFERENCE CALL DETAILS:


DATE:               Wednesday, December 12, 2012
TIME:               8:30 a.m. ET
DIAL-IN NUMBERS:    613-233-1979 / 1-866-696-5910

PARTICIPANT CODE:   1746780

INSTANT REPLAY:     1-800-408-3053
                    Passcode: 1689868
                    Available until December 13, 2012 10:00 a.m. ET

WEBCAST: A live audio webcast of the conference call will be available at the following link: http://www.gowebcasting.com/4021. This webcast will be archived here for 365 days. Please connect to the website at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to access the webcast.

About International Datacasting Corporation

IDC is a global leader in digital content distribution for the world's premiere broadcasters in radio, television, data 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 products and solutions are in demand for radio and television networks, digital cinema, 3D live events, ad insertion, satellite news gathering, sport contribution, ad insertion, 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 Thailand and Singapore with an international network of value-added partners and distributors.

Forward-Looking Statements

This press release contains forward-looking statements reflecting the current Board and management's operating and strategic plans, next steps and vision for IDC; and IDC's objectives, estimates and expectations, including statements about expected revenue impacts. All of these forward-looking statements are subject to risks and uncertainties. IDC's actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Factors that might cause actual results to differ materially include, but are not limited to, IDC's ability to successfully recruit new Board members and identify, hire, integrate and/or retain senior personnel and other key employees, competitive developments; risks associated with IDC's growth and the development and implementation of the Company's strategies; any difficulties with integrating acquired product lines into IDC's business and/or manufacturing procedures; any difficulties or disputes with IDC's subcontractors, contract manufacturers and suppliers; IDC's dependence on the development and growth of the satellite datacasting market; a lengthy and variable sales cycle for IDC's products and services; IDC's reliance on a small number of customers for a large percentage of its revenue; regulatory risks and intellectual property infringement. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof, except as expressly required by applicable law. Forward-looking statements are provided to assist external stakeholders in understanding the current Board and management'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. 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 dated April 30, 2012.


                    International Datacasting Corporation
      Unaudited Condensed Consolidated Statements of Financial Position
                 As at October 31, 2012 and January 31, 2012
                             (Canadian dollars)

                                        October 31, 2012   January 31, 2012
                                      --------------------------------------
ASSETS
Current Assets
  Cash                                   $     5,167,748    $     4,914,766
  Short-term investments                          75,000          2,336,800
  Available-for-sale investments               1,996,170                  -
  Accounts receivable                          6,123,101          4,673,727
  Inventories                                  2,933,872          4,247,470
  Other assets                                   508,150            722,882
                                      --------------------------------------
Total Current Assets                          16,804,041         16,895,645
                                      --------------------------------------

Non-Current Assets
  Other assets                                    84,231            631,607
  Capital assets                               1,576,953          1,852,739
  Deferred taxes                               2,800,000          2,800,000
                                      --------------------------------------
Total Non-Current Assets                       4,461,184          5,284,346
                                      --------------------------------------

TOTAL ASSETS                             $    21,265,225    $    22,179,991
                                      --------------------------------------
                                      --------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
  Accounts payable and accrued
   liabilities                           $     3,515,581    $     3,128,708
  Customer deposits                              246,772            755,761
  Deferred revenue - current portion             743,062            882,827
  Provisions                                     423,855            660,474
  Obligations under capital leases -
   current portion                                11,887             36,714
  Current tax liability                           17,537                  -
                                      --------------------------------------
Total Current Liabilities                      4,958,694          5,464,484
                                      --------------------------------------

Non-Current Liabilities
  Deferred tax liability                          26,283                  -
  Deferred revenue                                61,661                  -
  Obligations under capital leases                     -              3,002
                                      --------------------------------------
Total Non-Current Liabilities                     87,944              3,002
                                      --------------------------------------

TOTAL LIABILITIES                              5,046,638          5,467,486
                                      --------------------------------------

Shareholders' Equity
  Capital stock                               23,406,260         23,977,481
  Contributed surplus                          3,263,245          3,212,923
  Accumulated other comprehensive loss          (233,549)          (229,729)
  Accumulated deficit                        (10,217,369)       (10,248,170)
                                      --------------------------------------
TOTAL SHAREHOLDERS' EQUITY                    16,218,587         16,712,505
                                      --------------------------------------

TOTAL LIABILITIES AND SHAREHOLDERS'
 EQUITY                                  $    21,265,225    $    22,179,991
                                      --------------------------------------
                                      --------------------------------------



                    International Datacasting Corporation
 Unaudited Condensed Consolidated Statements of Operations and Comprehensive
                                Income (Loss)
               For the periods ended October 31, 2012 and 2011
                  (Canadian dollars, except for share data)



                             Three months ended           Nine months ended
                       October 31,  October 31,   October 31,   October 31,
                              2012         2011          2012          2011
                      ------------------------------------------------------

REVENUE                $ 7,111,096  $ 7,254,171  $ 23,086,247  $ 22,989,576

COST OF REVENUE          4,006,235    4,113,037    14,359,724    13,297,569
                      ------------------------------------------------------

GROSS PROFIT             3,104,861    3,141,134     8,726,523     9,692,007
                      ------------------------------------------------------

OPERATING EXPENSES
Selling, general and
 administrative          1,628,968    2,003,991     5,595,347     6,029,205
Research and
 development, net of
 investment tax
 credits                   914,360    1,346,790     3,062,304     4,341,088
Foreign exchange loss        8,967       17,428         2,273        11,305
                      ------------------------------------------------------
  Total operating
   expenses              2,552,295    3,368,209     8,659,924    10,381,598
                      ------------------------------------------------------

OPERATING INCOME
 (LOSS) BEFORE OTHER
 ITEMS                     552,566     (227,075)       66,599      (689,591)

Realized gain (loss)
 on sale of short-term
 investments                     -            -       (27,220)            -

Net interest income:
  Interest income            2,614       12,222        47,589        25,498
  Interest expense          (1,827)      (1,474)      (11,149)       (5,799)
                      ------------------------------------------------------

INCOME (LOSS) BEFORE
 INCOME TAXES              553,353     (216,327)       75,819      (669,892)
Income tax recovery
 (expense):
  Current                  (10,782)      15,692       (18,735)       46,694
  Deferred                       -            -       (26,283)            -
                      ------------------------------------------------------

NET INCOME (LOSS)      $   542,571  $  (200,635) $     30,801  $   (623,198)
                      ------------------------------------------------------
                      ------------------------------------------------------

OTHER COMPREHENSIVE
 LOSS, NET OF TAXES
Change in fair value
 of available-for-sale
 investments                (3,820)           -        (3,820)            -
                      ------------------------------------------------------

  Total other
   comprehensive loss,
   net of taxes             (3,820)           -        (3,820)            -
                      ------------------------------------------------------

COMPREHENSIVE INCOME
 (LOSS)                $   538,751  $  (200,635) $     26,981  $   (623,198)
                      ------------------------------------------------------
                      ------------------------------------------------------


NET EARNINGS (LOSS)
 PER SHARE
  Basic                $      0.01  $     (0.00) $       0.00  $      (0.01)
  Diluted              $      0.01  $     (0.00) $       0.00  $      (0.01)

  Weighted average
   number of shares
   outstanding - basic  57,502,268   58,410,946    58,082,876    57,018,768
  Weighted average
   number of shares
   outstanding -
   diluted              57,506,101   58,410,946    58,089,327    57,018,768



                    International Datacasting Corporation
          Unaudited Condensed Consolidated Statements of Cash Flows
               For the periods ended October 31, 2012 and 2011
                             (Canadian dollars)

                               Three months ended         Nine months ended
                         October 31,  October 31,  October 31,      October
                                2012         2011         2012     31, 2011
                        ----------------------------------------------------

OPERATING ACTIVITIES
Net income (loss)        $   542,571  $  (200,635) $    30,801  $  (623,198)
Add items not requiring
 an outlay of cash:
  Depreciation and
   amortization              122,739      239,136      401,229      771,018
  Deferred and current
   taxes                      17,537      (15,508)      43,820      (46,525)
  Realized loss on sale
   of short-term
   investment                      -            -       27,220            -
  Realized and
   unrealized losses on
   derivatives               111,727       30,299      125,296      181,562
  Stock-based
   compensation               21,452       20,705       42,744      127,198
                        ----------------------------------------------------
                             816,026       73,997      671,110      410,055
Net change in non-cash
 working capital:
  Accounts receivable       (250,873)   1,483,787   (1,449,374)   4,259,490
  Inventories                547,296     (458,735)   1,313,598   (1,081,114)
  Other assets                31,894     (102,873)     116,428     (185,048)
  Accounts payable and
   accrued liabilities         3,790      112,940      355,257   (1,578,166)
  Customer deposits         (782,773)    (245,760)    (508,989)  (1,094,020)
  Deferred revenue           252,902     (200,077)     (78,104)     231,658
  Provisions                 (50,937)      26,370     (236,619)     (73,020)
                        ----------------------------------------------------
Net cash provided by
 operating activities        567,325      689,649      183,307      889,835
                        ----------------------------------------------------

INVESTING ACTIVITIES
Purchase of capital
 assets                      (13,291)    (121,448)    (125,443)    (454,663)
Proceeds from redemption
 of short-term
 investment                2,309,580            -    2,309,580            -
Purchase of short-term
 investment                        -            -      (75,000)           -
Purchase of available-
 for-sale investments     (1,999,990)           -   (1,999,990)           -
                        ----------------------------------------------------
Net cash provided by
 (applied to) investing
 activities                  296,299     (121,448)     109,147     (454,663)
                        ----------------------------------------------------

FINANCING ACTIVITIES
Repayments of
 obligations under
 capital leases               (9,036)     (13,780)     (27,829)     (42,079)
Issue of common shares,
 net of issue costs                -        1,375        4,481      151,137
Repurchase of common
 shares, net of costs              -            -      (16,124)           -
                        ----------------------------------------------------
Net cash provided by
 (applied to) financing
 activities                   (9,036)     (12,405)     (39,472)     109,058
                        ----------------------------------------------------

Net increase in cash
 during the period           854,588      555,796      252,982      544,230

CASH - Beginning of
 period                    4,313,160    6,691,058    4,914,766    6,702,624
                        ----------------------------------------------------

CASH - End of period     $ 5,167,748  $ 7,246,854  $ 5,167,748  $ 7,246,854
                        ----------------------------------------------------
                        ----------------------------------------------------



                    International Datacasting Corporation
                  Non-GAAP Financial Measure Reconciliation
    Adjusted Earnings Before Income Taxes, Depreciation, and Amortization
                                  (EBITDA)
               For the periods ended October 31, 2012 and 2011
                             (Canadian dollars)

                                Three months ended       Nine months ended
                           October 31, October 31,  October 31, October 31,
                                  2012        2011         2012        2011
                          --------------------------------------------------

Net income (loss)          $   542,571 $  (200,635) $    30,801 $  (623,198)
Add back:
  Shareholder dissent
   expense                      10,000           -      413,439           -
  Incremental external
   business acquisition
   expense                           -           -      213,940           -
  Depreciation and
   amortization expense        122,739     239,136      401,229     771,018
  Restructuring expense         96,377      35,851      287,665      35,851
  Income tax expense
   (recovery)                   10,782     (15,692)      45,018     (46,694)
                          --------------------------------------------------

Adjusted EBITDA            $   782,469 $    58,660  $ 1,392,092 $   136,977
                          --------------------------------------------------
                          --------------------------------------------------

In this release, IDC has presented Adjusted EBITDA, which is a "non-GAAP financial measure" and accordingly it is not an earnings measure recognized by IFRS and does not carry standard prescribed significance. Moreover, IDC's method for calculating Adjusted EBITDA may differ from that used by other companies using the same designation. Accordingly, we caution readers that Adjusted EBITDA should not be substituted for determining net income (loss) as an indicator of operating results or as a substitution for cash flows from operating and investing activities.

We believe Adjusted EBITDA is a meaningful and useful financial metric to investors and analysts for measuring and predicting its operating performance by excluding income taxes, depreciation and amortization as well as unusual charges (shareholder dissent, and incremental external business acquisition costs), and restructuring.

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

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