OTTAWA, Canada, April 6, 2007 - Satnews Daily - International Datacasting Corporation (IDC) saw a surge in fourth quarter 2006 earnings and full year revenues. Net income, however, was lower than 2005.
Fourth quarter net earnings almost tripled to $905,714 from the added business of its new subsidiary and stronger European sales. Revenues grew 59.1 per cent to $6.9 million, while earnings before interest, taxes, depreciation and amortization (Ebitda) rose to over $1 million from $640,989 year-on-year.
IDC chief executive Ron Clifton said he was very pleased to report a strong fourth-quarter finish leading to another year of profitability, "our third in a row following the high-tech downturn that had such a profound impact on IDC and many other companies in the industry." Revenues have more than doubled from four years ago, he added.
"This growth can be attributed to the added business of our new PROFLine subsidiary and the subsequent strengthening of our European business, as well as the launch of a number of critical new products and applications last year," he said. "Combined with our strong working capital and backlog, these results position us well moving forward."
Full year net earnings, however, dropped 54.1 per cent to $305 million despite a 31.5-per-cent jump in revenues to $17.8 million. Ebitda also fell to $1.32 million from $1.34 million.
The company has won a number of important contracts, especially through PROFLine, which launched new products to meet Restrictions on Hazardous Substances (RoHS) standards in Europe. PROFLine brought in new business for next-generation networks in the Netherlands, Belgium and Sweden, and for the expansion of the international broadcast network in Italy.
Services provided through IDC’s DVB-S2 satellite saw additional customers in Canada abroad, including another extension of its multi-year contract with the Canadian Forces Radio & Television network and a new network provision for Reuters in Europe and Africa.
"We plan to maintain our strong research and development focus and broaden the DVB-S2 line to include new low-cost receivers as well as more high-end models that will expand the performance range," Clifton said. "I'm confident this strategy will continue to pay off for IDC both in terms of overall growth and increased shareholder value."
Immediately following IDC’s fiscal year-end board meeting, the company elected director Dr. Peter Scovell chairman of the board of directors, effective immediately. Longtime chairman Denzil Doyle resigned the post and will continue as an active director.
Dr. Scovell, a member of IDC's board of directors for the last four years, has more than 25 years’ experience managing technology enterprises, including senior positions heading up Nortel's fixed wireless business and later Nortel's global strategy in satellite wireless access. Today, he is head of Newlyn Technologies, an international technology consultancy he founded in 1999. In that capacity, he works closely with the New York-based private equity company, Warburg Pincus LLC, advising on all aspects of the communications and information technology sectors-from broad strategy to investment advice.
He also serves on several boards including ComDev, is a Chartered Physicist and a Fellow of the Institute of Physics. He has a PhD in theoretical physics from the University of Leeds and more than 30 semiconductor, photonics and wireless patents to his name.
IDC (TSX: IDC) provides products, systems and services for the implementation of broadband wireless infrastructure networks used to distribute multimedia data. IDC delivers IP-based datacasting solutions via satellite and content distribution technologies.
