Amid executive restructuring, International Datacasting Corp. (TSX:IDC) reported this week that despite revenues from one of its business streams dropping by 54 per cent, it still managed to eke out a third-quarter profit.
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International Datacasting Corp.'s Kanata headquarters.
The sharp decline in IDC’s system segment was largely due to the completion of the first phase roll-out of a direct-to-home broadcasting project in Kenya, according to a company release.
Products line sales, however, increased by 24 per cent, resulting in total revenues of $7.1 million – down two per cent from the $7.3 million during the same period last year.
Those revenues helped IDC produce a net income of $542,571, up from a net loss of $200,635 during the third quarter of its fiscal 2012.
The increase in revenues from its product line came from large contracts in France and Thailand, the company said.
IDC improved its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to $782,000 from $59,000 from the comparable prior period. The improvement was largely due to lower operating expenses, including a 19 per cent reduction in “selling, general and administration” costs and a 32-per-cent-decrease in research and development costs.
“IDC is actively reviewing and revising our global sales and distribution strategy,” stated Del Lippert, interim CEO and chairman of the board, adding that the company is focusing on emerging markets such as Asia and Africa.
“By reallocating and expanding key resources to meet the needs of master distributors and OEM customers in these target regions, we believe that we can directly enhance our market position and in turn stimulate the growth that our shareholders expect from IDC,” he stated.
The company reported holding $5.2 million in cash.
The digital content distributor for broadcasters was embroiled in a dispute this summer as a dissident former chair, Adam Adamou, advocated a management shakeup.
Last quarter, IDC posted a $305,000 net loss and announced it had spent $604,000 on the proxy battle and a now-discontinued strategy to grow by acquisition.