International Datacasting Corporation Announces First Quarter Fiscal 2013 Results

June 5, 2012

International Datacasting Corporation (TSX:IDC), a global leader in digital content distribution for the world's premiere broadcasters, today announced results for the first quarter fiscal 2013 period ended April 30, 2012.

The Corporation's consolidated revenue for first quarter fiscal 2013 was $9.7 million, an increase of 16% from $8.4 million in first quarter fiscal 2012. When excluding the impact of foreign exchange, revenue increased by 14% in first quarter fiscal 2013 compared to first quarter fiscal 2012. EBITDA(1) improved to a loss of ($63,350) versus a loss of ($243,494) in the first quarter fiscal 2012.

Revenues for the IDC Products segment decreased 40% from $5.1 million to $3.1 million from first quarter fiscal 2012 to first quarter fiscal 2013. The decrease in revenue is attributable to the fulfilment of a large radio order in first quarter fiscal 2012.

Revenues for the IDC Systems segment increased 104% from $3.2 million in first quarter fiscal 2012 to $6.6 million in first quarter fiscal 2013. The increase in IDC Systems revenue is attributable to the continued roll-out of the Direct-to-Home Broadcasting (DTH) project in Kenya announced in fiscal 2011.

"Whereas I am pleased with the renewal of the CFRT contract announced in March, 2012 and the orders from the Wananchi Group announced in February, 2012, our performance in the Products Group is a focus for improvement. IDC's management and Board have been working to improve this performance in an effort to make Fiscal 2013 a year of transition for IDC as the company works at realigning its cost structure and executing on a new market and product strategy. Numerous steps in this respect have been taken so far, the benefits of which we believe will start to be seen in the near future. Our goal for the Products Group is sustainable profitability," stated Frederick Godard, President and CEO, IDC.

"IDC's strategy will continue to focus on existing market niches at the same time as it works at developing new market opportunities. An embodiment of that strategy was the recent launches of both IDC LASER(TM) and Digital Tattoo(TM) which target significantly larger market niches than previously. We will continue to work towards expanding our geographic reach. For example, we have recently announced new leadership and focus on the Asian markets. Finally, we have recently undertaken a restructuring aimed at realigning our cost structure and resource requirements in light of our new market/product strategy and the current economic circumstances."