A revenue decline of almost 50 per cent pushed losses up almost five-fold at Ottawa’s International Datacasting Corporation (TSX:IDC) during its fiscal year, according to preliminary results released last week.
The digital content distributor reported revenue of $16.3 million during the year that ended on Jan. 31, 2014. That’s down from $29.2 million during the same period a year earlier.
The company blamed the decline on the completion of a direct-to-home television system rollout in Africa and “a 38 per cent decrease in product revenues.”
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That decline pushed the company’s before-tax losses up from $1 million in fiscal 2013 to $4.8 million in fiscal 2014.
For the fourth quarter, the three-month period that ended on Jan. 31, IDC reported revenue of $3.6 million. While that’s up from the previous quarter, when the company had revenue of $2.5 million, it’s a 42-per cent decline from the same period last year, when the company had revenue of $6.2 million.
The company said it does expect an improvement in the coming year but added that “those improvements are expected to be partially offset by the reduction in revenues from the Canadian Forces Radio and Television broadcast services contract.”
That contract, which accounted for 17 per cent of revenue during the most recent quarter for which full financial information is available, was terminated in early February.
The troubled company has struggled to return to profitability in recent months, announcing multiple cost-cutting measures, a sales-force restructuring and the replacement of its CFO.
“In the past six months, IDC has developed a new business strategy and put in place a new leadership team. We restructured our sales force, initiated a refresh of our product portfolio, and significantly reduced our cost structure,” said Doug Lowther, IDC’s president and CEO, in a press release.
“These changes provide IDC with a stronger foundation and we are moving forward with confidence and determination. I would like to thank our shareholders for your ongoing patience and support.”
The company says it will release full financials for its 2014 fiscal year and the fourth quarter before the end of April. The company says it will also provide management discussion and analysis and hold a conference call to answer questions from investors about the results at that time.
