Posted on December 6, 2010
Ottawa, ON – December 6, 2010 – – International Datacasting Corporation, (TSX: IDC), a global leader in IP-based datacasting solutions for the distribution of broadband multimedia content, today announced its financial results for the three and nine-month FY2011 periods ended October 31, 2010. All figures are in Canadian dollars unless otherwise stated.
Financial Highlights: Q3 2011 vs. Q3 2010
- Revenue of $ 8.9 million, up 53% from $ 5.8 million. Excluding the impact of foreign exchange, sales increased by 67%
- Gross margin improved to 45% from 40%
- EBITDA1 increased to $ 1.1 million vs. a loss of $ 0.2 million making it the highest EBITDA quarter in the Company’s history
- GAAP net income increased from $ 0.1 million to $ 0.9 million
Financial Highlights: Q3 2011 vs. Q2 2011
- Sequential revenue up by 4% from $ 8.6 million to $ 8.9 million
- Gross margin remained consistent at 45%
- EBITDA1 increased by 29% to $ 1.14 million from $ 0.9 million
- GAAP net income increased by $ 0.6 million
Third Quarter Fiscal 2011 Financial Review
Consolidated FY2011 third quarter revenues were $ 8.9 million or 53% higher than in the same quarter in FY2010 and 4% higher than in the second quarter of FY2011. Excluding the impact of foreign exchange, sales increased by 67% over FY2010. These improvements in revenues were driven by increased sales in the Radio market, the roll out of Digital Cinema in European and North American markets, and greater demand for IPTV product lines. EBITDA, GAAP net income and gross margin realized significant improvements over FY2010. Cash levels continue to be strong with cash totaling $ 8.3 million at the end of the third quarter, up from $7.6 million in the second quarter, with net working capital at $ 11.5 million, up from $ 10.4 million at the end of the previous quarter.
Research and development expenses, net of investment tax credits (“R&D”), declined by 7% to $ 1.1 million from $ 1.2 million in the second quarter. Selling, general and administrative (“SG&A”) expenses increased slightly due to timing of customer tradeshows from $ 1.9 million in the second quarter to $ 2.0 million in third quarter. As a result of the implementation of cost control measures during the first quarter 2011, IDC realized a decrease in operating expenses relative to the same quarter in FY2010 with SG&A expenses decreasing from $ 2.3 million to $ 2.0 million in 2011, while R&D remained the same at $ 1.1 million for the same period in FY2010.
The results for the current period include a contribution for the Direct-to-Home Broadcasting service that was announced June 30, 2010 regarding The Wananchi Group. In the third quarter, revenues from this contract totaled $ 0.9 million, with the balance expected to be realized over the next four quarters.
“Our continued focus on delivering innovative broadband solutions for our global customer base resulted in significant orders in all of our product lines and territories,” said Fred Godard, IDC President & CEO. “I am pleased with our fiscal and operational accomplishments and maintain our optimistic outlook for the balance of the year and into fiscal 2012. Increased revenue combined with lower operating costs have generated the strongest EBITDA quarter in the Company’s history.”
“We are pleased to announce, year to date, the highest revenue in IDC’s history,” stated Adam Adamou, IDC Executive Chairman. “Management believes the Company is only beginning to realize the benefits of our operational enhancements made over the past three quarters. Our strategic planning process includes continuing operational improvements well into fiscal 2012, a full market based assessment of the present and future needs of our customers, and an on-going commitment to generating sustainable long term value for our shareholders.”
A conference call will be held on Tuesday, December 7, 2010 at 9:00 a.m. ET to discuss this announcement. The call may be accessed by dialing 1-613-233-1979 / 1-866-696-5910 with the pass code 8611450. A taped replay will be available until December 8, 2010 at 10:00 a.m. by dialing 1-800-408-3053 and reference the pass code 7810186. To access the live webcast, please visit http://www.gowebcasting.com/2102.
A complete set of Financial Statements and Management’s Discussion and Analysis for the three and nine months ended October 31, 2010 of FY2011 will be available at www.sedar.com or on the Investor Information section of IDC’s website at www.datacast.com.
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 Company’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 IP-based datacasting solutions for the distribution of broadband multimedia content. IDC has a broad portfolio of advanced technology products marketed under the names SuperFlex, Datacast XD, Tiernan, Logic Innovations and PROFline for implementing a wide range of broadband content contribution and distribution networks. IDC's products are in demand for radio and television broadcast networks, distance learning, digital satellite news gathering and sport contribution, digital signage, digital cinema, IPTV distribution and other applications. IDC is headquartered in Ottawa, Canada, with regional offices in Arnhem, the Netherlands and in San Diego, California. International in scope, IDC has installations in over 100 countries and service offices in Australia, Singapore and China and an international network of value-added partners and distributors.
International Datacasting Corporation
Director, Marketing and Communications
Tel. 613-596-4120 x 2215
(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.