Shoulda took my own advice I guess I should have sold some on the recent tick up. Tomorrow will likely be unpleasant.
Ottawa, ON – April 25, 2012 – International Datacasting Corporation (TSX: IDC), a global leader in digital content distribution for the world’s premiere broadcasters, today announced results for the fourth quarter and fiscal year-end periods ended January 31, 2012.
Revenue decreased 44% in the fourth quarter versus the same quarter in 2011, to $6.4 million, and EBITDA1 decreased to a loss of $1.5 million. Excluding the impact of changes in foreign exchange from the strengthening of the Canadian dollar, IDC’s revenues decreased by 45% in fourth quarter fiscal 2012 versus the same fiscal quarter in 2011.
International Datacasting’s fiscal year-end 2012 revenue was $29.4 million, down 15% from fiscal 2011, and down 12% excluding the impact of foreign exchange.
4Q Fiscal 2012 Financial Summary
- Revenue was $6.4 million, down 44%, compared to $11.5 million in 4Q fiscal 2011, and down 45% excluding the impact of changes in foreign exchange from the strengthening of the Canadian dollar.
- Normalized gross profit margin, excluding an inventory write-off of $700,000 in 4Q fiscal 2012, decreased to 36% from 42% in 4Q fiscal 2011 due to product mix in the IDC Systems Segment.
- EBITDA1 decreased to a loss of $1.5 million or (
.03) per share, compared to earnings of $1.3 million or
.02 per share in 4Q fiscal 2011.
- Net earnings decreased by $3.3 million to a loss of $1.7 million, or (
.03) per share, compared to net earnings of $1.6 million, or
.03 per share, in 4Q fiscal 2011.
Fiscal Year-End 2012 Financial Summary
- Revenue was $29.4 million, down 15%, as compared to $34.4 million for fiscal 2011, and down 12% excluding changes in foreign exchange.
- Gross profit was $11.3 million, or 38% of revenues compared to 43% in fiscal 2011.
- EBITDA1 decreased by $3.0 million to a loss of $1.4 million or (
.02) per share, as compared to earnings of $1.6 million or
.03 per share for fiscal 2011.
- Net earnings decreased by $3.3 million to a loss of $2.3 million, or (
.04) per share, compared to net earnings of $1.0 million, or
.02 per share, for fiscal 2011.
“IDC has been in a steady process of streamlining its operations over the past two years. More importantly, through the introduction of new products and technologies IDC has been seeking to expand its addressable markets from its current base to include markets with more breadth and scope. This is not to abandon historic markets and customer relationships, but to build upon our existing strengths to increase the addressable market reach of IDC. The introduction of two new major market thrusts launched at the recent National Association of Broadcasters’ Convention marks the beginning of the next phase in this transformation of IDC. This long-term transformation is being executed with the objective of launching IDC into markets capable of driving sustained growth.
Fiscal 2012 was a disappointing year from a financial perspective. This was due in part to the effect of a significant write down in the value of inventory associated with legacy businesses of IDC, as well softening in our legacy markets. However, seeds were planted which we expect will germinate in fiscal 2013 and create a much more competitive and successful IDC,” stated Frederick Godard, President and CEO, IDC. “Fortunately, IDC remains well capitalized with a solid working capital base as we continue to invest in new product introductions and enter into new markets. With a renewed culture of innovation, IDC is well positioned to take advantage of growth opportunities in emerging geographic markets, and we remain focused on innovation in global broadcast content distribution.”
Conference Call
A conference call will be held on Thursday, April 26, 2012 at 8:30 a.m. ET to discuss this announcement. The call may be accessed by dialing 1-613-788-3830 / 1-888-789-9572 with the pass code 3893519. A taped replay will be available until April 27, 2012 at 10:00 a.m. ET by dialing 1-800-408-3053 and reference the pass code 5190705. A live audio webcast of the conference call will be available at https://www.gowebcasting.com/3260. The webcast will be archived here for 365 days.
Forward-Looking Statements
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 Corporation’s expectations. Factors that might cause a material difference include, but are not limited to, competitive developments, risks associated with IDC's growth, risks associated with any past or future acquisitions or divestitures, the development of the satellite datacasting market, regulatory risks, intellectual property infringement and other factors. Any forward-looking statements are provided to assist external shareholders in understanding IDC's expectations as at the date of this release and may not be suitable for other purposes. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof, except as expressly required by law. More detailed information about potential factors that could affect IDC's financial and business results is included in IDC's Annual Information Form dated April 29, 2011 and the other public documents IDC files from time to time with Canadian securities regulatory authorities.
A complete set of financial statements and management’s discussion and analysis for the year ended January 31, 2012, FY2012 will be available at https://www.sedar.com/ or on the Investor Information section of IDC’s website at www.datacast.com.
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