OTTAWA, ONTARIO — (Marketwired) — 04/29/13 — 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 fourth quarter and fiscal year ended January 31, 2013. All amounts in this release are in Canadian dollars unless otherwise stated.
Financial Highlights:
(in millions, except for gross margin and net loss per share)
Fourth Quarter Results
Revenues totaled $6.2 million for the fourth quarter of Fiscal 2013, representing a 4% decline from the prior year-s fourth quarter. Product revenues grew by 46% as a result of an increase in the average dollar value per sales order compared to the same quarter in Fiscal 2012. Systems sales declined by 57%, due primarily to the completion of the Direct-to-Home Broadcasting project in Kenya during the first quarter of Fiscal 2013. IDC anticipates that revenue will be materially lower going forward in this segment as the company shifts its focus to the higher margin and more scalable products business. IDC has recently launched new products targeted at high growth areas including the LASER Targeted Ad Insertion Platform and the STAR Pro Audio solution and is expected to be the catalyst for improved margins and revenue growth.
During the fourth quarter of Fiscal 2013, gross margins improved to 39% from 25% in the same quarter in Fiscal 2012 mainly due to lower inventory impairment charges. Excluding inventory impairments, gross margins would have been 40% and 37%, respectively.
IDC generated a slight loss on an adjusted EBITDA basis for the quarter, a $0.2 million improvement over the comparable period. IDC-s balance sheet remains healthy with a working capital ratio of 3.2 to 1 and liquid assets of $7.0 million at January 31, 2013.
Del Lippert, Interim CEO and Chairman of the Board of IDC, stated, “During fourth quarter of Fiscal 2013, we made solid progress in building a stronger management team and expect to benefit from this over the course of Fiscal 2014 and beyond.” Lippert added, “We are confident that our next generation STAR and LASER solutions position us well to gain share in the global broadcast markets.”
Rick Clements, Chief Financial Officer of IDC, stated, “During the fourth quarter of Fiscal 2013, we continued to focus on delivering strong revenue growth at higher gross margin within the IDC Products segment, enabling IDC to incur only a small loss on an adjusted EBITDA basis despite the management shake-up during the quarter. For fiscal year 2013, we executed against our cost reduction goals with an operating loss improvement of $1.4 million primarily due to corporate restructuring.” Clements added, “We remain very focused on delivering a significant improvement in our operating margin in Fiscal 2014 and beyond, which we believe will drive increased shareholder value. In addition, the improvement in our pipeline as a result of a successful NAB event is a further step toward ultimately realizing revenue goals over the long-term.”
For further information on IDC-s fourth quarter and fiscal year-end 2013 results, refer to the audited consolidated financial statements and Management-s Discussion and Analysis that will be available on SEDAR () after the Toronto Stock Exchange closes on April 29, 2013.
Financial Summary & Conference Call
This announcement will be followed by a Management conference call at 8:30 a.m. ET on Tuesday, April 30, 2013, 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:
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. The company-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. Risk factors that might cause actual results to differ materially include, but are not limited to:
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 ,
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 income taxes, depreciation and amortization as well as unusual and/or non-recurring charges as noted in the above table. While inventory impairment charges are not unusual for our satellite communication industry due to the rapid technological change, we have excluded this item from EBITDA given the unusually large inventory write- off in the fourth quarter of Fiscal 2012.
Contacts:
Rick Clements
Chief Financial Officer
International Datacasting Corporation
613-596-4120
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