OTTAWA, ONTARIO — (Marketwired) — 09/05/13 — International Datacasting Corporation (“IDC”) (TSX: IDC), a global leader in digital content distribution solutions for the world-s premiere broadcasters, announced its financial results today for the first half and second quarter ended July 31, 2013. All amounts in this release are in Canadian dollars unless otherwise stated.
Financial Highlights:
(in thousands, except for gross margin (GM) and loss per share)
(1) The breakdown of revenues is based on revised operating segments.
(2) Adjusted EBITDA is a non-GAAP financial measure. The reconciliation of Adjusted EBITDA to Net Loss is provided at the end of this release.
For the second quarter of Fiscal 2014, total revenues were $4.9 million, a decrease of 23% or $1.4 million from the prior period. The total gross margin for the quarter declined to 45% from 47% for the comparable prior period, primarily due to lower volume of sales to cover current manufacturing-related overhead costs.
For the first half of Fiscal 2014, total revenues were $10.2 million, compared to $16.0 million for the same period in Fiscal 2013. The decrease of $4.8 million or 36% was driven substantially by lower sales within the Systems Project segment as a result of the completion of the Direct-to-Home Broadcasting project in Kenya. The total gross margin improvement was largely due to change in business mix with higher margins earned from Products and Services segments.
“The impact of reduced revenues on profitability was mitigated by strength in our Digital Cinema business, as well as by effective cost controls,” said Doug Lowther, CEO of International Datacasting. “IDC remains the market leader in satellite delivery of Cinema content and we estimate that we support 70% of the sites that are deployed worldwide.”
Operating Expenses decreased by $0.6 million or 20% to $2.6 million in the current quarter and decreased by $0.7 million or 17% to $5.4 million for the first half of Fiscal 2014 compared to prior periods. The significant cost savings were largely due to unusual charges incurred in the second quarter of Fiscal 2013 with respect to the dissident shareholder proxy contest and the failed acquisition transaction.
IDC incurred an Adjusted EBITDA loss of $0.2 million for both the second quarter and first half of Fiscal 2014, compared to income of $0.4 million and $0.6 million for the same prior periods, respectively. At July 31, 2013, IDC-s working capital ratio improved to 3.7 to 1 and had liquid assets of $5.6 million. “Cash management continues to be a focus for the Company and our balance sheet remains solid,” said Rick Clements, CFO of International Datacasting.
For further information on IDC-s first quarter results, refer to the unaudited interim condensed consolidated financial statements and Management-s Discussion and Analysis that will be available on SEDAR () after the Toronto Stock Exchange closes on September 5, 2013.
Financial Summary and Conference Call
This announcement will be followed by a Management conference call at 8:30 a.m. ET on Friday, September 6, 2013, to discuss the results, and to respond to questions from investors.
Mr. Doug Lowther, President and CEO of IDC, cordially invites all interested parties to participate in the conference call.
CONFERENCE CALL DETAILS:
CONFERENCE DATE: Friday September 6, 2013
CONFERENCE TIME: 8:30 a.m. ET
DIAL-IN NUMBERS: 613-233-1979 / 866-696-5910
PARTICIPANT CODE: 1045890
WEBCAST: A live audio webcast of the conference call will be available at the following link: . 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:
International Datacasting Corporation (TSX: 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 the STAR Pro Audio Solution, LASER Targeted Ad Insertion Platform, and the Digital Tattoo DTH Over IP Gateway. IDC-s products and solutions are in demand for radio and television networks, targeted ad insertion, digital cinema, 3D live events, satellite news gathering, sports contribution, VOD, and IPTV. IDC is headquartered in Ottawa, Canada, with regional offices in Arnhem, the Netherlands and in San Diego, California. The company has installations in over 100 countries and service offices in Thailand and Singapore, and an international network of value-added partners and resellers.
For more information visit: .
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. 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. 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”, “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: competitive developments; risks associated with IDC-s growth; expectations regarding new product initiatives and timing, including the STAR Pro Audio Solution, LASER Targeted Ad Insertion Platform and Digital Tattoo DTH Over IP Gateway; 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 services 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; expectations with respect to the sufficiency of its financial resources and liquidity; regulatory risks and intellectual property infringement.
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 , including, without limitation, IDC-s MD&A for the year ended January 31, 2013, dated April 29, 2013.
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.
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 interest expense and income, income taxes, depreciation and amortization as well as unusual and/or non-recurring charges as noted in the above table.
Contacts:
International Datacasting Corporation
Rick Clements
Chief Financial Officer
613-596-4120
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