Troubled digital content distributor International Datacasting Corp. took the somewhat unusual step of issuing a mid-quarter update on Thursday that promises an improvement in fourth-quarter results.
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International Datacasting Corp.'s Kanata headquarters.
While the update doesn’t contain any specific numbers on the company’s financial performance, it claims that the company expects its next quarterly results to be “improved relative to the third quarter” even as “revenues remain soft relative to historical levels.”
During a conference call in December to discuss results for the company’s third quarter, executives faced tough questions from investors and calls for board members to resign as a result of the company’s struggle to return to profitability.
According to the release, the company is starting to see results from a restructuring announced in early December.
The company said that its new sales process is improving its ability to track the progress of deals while new products begin to ship.
It also said that work on the company’s new product architecture, designed to create a simplified, single platform for all its products, is moving forward “with the potential for volume shipments before the end of fiscal 2015.”
The company said it’s also taking steps to reduce expenses by cutting “product costs, discretionary expenses, and overheads, as opposed to cutting needed investments in R&D and sales.”
IDC is also offering its staff the ability to take a percentage of their salary in company stock rather than cash. The move is designed to reduce costs and increase the “alignment of employee and shareholder interests.”
"The actions we're taking are intended to not only improve IDC's short-term results, but also to put in place solid foundations for more robust and predictable performance in the future,” said Doug Lowther, the company’s president and CEO in the release.
“We believe that IDC has the technology, the people, and the customers to achieve progressive improvement in results over fiscal 2015.”