IDC Continue to Post Losses in 2nd Quarter Fiscal 2015
Ottawa, Canada, September 4, 2014-- International Datacasting Corporation (IDC) (TSX:IDC), announced its financial results today for the first half and second quarter ended July 31, 2014. Total revenues and financial results decreased from the same period in Fiscal 2014, however compared with the previous quarter both product revenues and margins improved.
Revenues totaled CDN$ 2.6 million for the second quarter of Fiscal 2015, 46% lower than the prior year's second quarter. The decrease was primarily due to the non-renewal of the Canadian Forces Radio and Television service, as well to the deferral of certain orders for data and digital cinema products to future quarters. The total gross margin for the quarter improved to 47% from 45% for the comparable prior period, primarily due to a more favorable mix of products sold as well as reduced overheads. IDC incurred a net loss of CDN$ 1.3 million in the second quarter, compared to a loss of CDN$ 0.4 million in Fiscal 2014.
When comparing IDC's second quarter product sales with the first quarter of Fiscal 2015, revenues increased by 14% and gross margins improved from 34% to 50% in the quarter. These results reflect more favorable margins from sales of newer products as well as reductions in overhead costs.
While total revenues in the first half of Fiscal 2015 decreased by 47% from the previous year, deferred revenues doubled to CDN$ 1.0 million at July 31st, 2014 as compared to January 31, 2014. These deferred revenues will be recognized in future quarters.
At July 31, 2014, IDC's working capital was CDN$ 5.0 million, including CDN$ 1.8 million in cash. In addition, on September 3rd IDC received a commitment from a major financial institution for a new financing facility that will provide up to CDN$ 1 million of additional liquidity.
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