OTTAWA, ONTARIO--(Marketwire - July 20, 2012) - International Datacasting Corporation (TSX:IDC) is urging shareholders to reject a dissident's failed business strategy in favour of the clear and long-term vision proposed by management's slate of board nominees.
In a letter to shareholders ahead of the company's annual meeting on July 31, 2012, Frederick Godard, IDC's President and CEO, noted that the dissident, Adam Adamou, has based his campaign on a slew of inaccurate and misleading allegations.
Most recently, Mr. Adamou or someone acting on his behalf has manipulated links on IDC Twitter postings to misdirect shareholders to his dissident blog.
Mr. Adamou has also added Mr. Godard's name to the dissident slate of board nominees without Mr. Godard's knowledge or consent. "Let me be clear", Mr Godard said in his letter. "I have no wish to be associated with Mr. Adamou's slate or with his strategy for IDC."
IDC shareholders are urged to defeat the dissident and protect IDC by voting the WHITE proxy ahead of the annual meeting. The voting deadline is 5pm (EDT) on Friday, July 27, 2012.
Noting that Mr. Adamou wants IDC to focus on acquisitions, Mr. Godard said: "What Mr. Adamou fails to tell you is that the company pursued just such a strategy from late 2010, but abandoned it in June 2012 after it turned into a costly and time-consuming failure.
- The acquisition strategy pursued under Mr. Adamou's leadership cost IDC and its shareholders at least $873,000. Yet the initiative yielded not a single successful acquisition.
- Throughout the 18-month period, only one transaction was brought forward to the full board. The prospective seller ended up rejecting the deal, but not before it had fractured the board and cost IDC more than $240,000 in legal and other expenses.
- This business acquisition strategy pursued by Mr. Adamou, known as BAQ, was unfocused.
"What possible advantage can there be in returning so soon to such a costly and misguided strategy?" Mr. Godard said. "Why take the risk of once again spreading our limited resources so thinly?"
IDC's current management has a carefully-considered growth strategy that is set to deliver strong financial performance in both the short and long term.
- Management has turned around IDC's legacy products business, in spite of the distraction caused by Mr. Adamou's acquisitions strategy.
- This turnaround has been achieved by selectively reducing the product range, streamlining operations, cutting operating costs, forming technology partnerships with highly-regarded third parties, and integrating under-performing acquisitions made by IDC's previous management. Gross margins are now improving.
- IDC has also developed and launched new products with a focus on larger markets. Prime examples are our new IDC Laser™ and Digital Tattoo™ products launched in April 2012.
- IDC is in advanced (though still confidential) discussions with significant potential customers for both IDC Laser and Digital Tattoo.
"With shareholders' support, we are confident that IDC has a bright future", Mr. Godard said. "We will build on our proven expertise and products, leveraging our cutting-edge technology and global channel management."
Attention IDC Shareholders:
Protect your investment in IDC by voting only your WHITE proxy well in advance of the deadline of 5:00 p.m. (Eastern Time) on July 27, 2012.
If you have voted a blue proxy, you can still change your vote, simply by voting your WHITE proxy today. Your subsequent later dated WHITE proxy will replace any prior dated blue proxy you may have voted.
Shareholders who do not have a WHITE proxy or who have questions about voting their proxy for the upcoming meeting of shareholders should contact Kingsdale Shareholder Services Inc. toll-free at 1-866-581-1514, or (416) 867-2272 (collect calls accepted), or email@example.com.
Further information and updates on the annual meeting and electronic voting options can be found on IDC's website www.datacast.com.
About International Datacasting Corporation
International Datacasting Corporation (TSX:IDC) is a producer of digital content distribution for the world's premiere broadcasters in radio, television, data and digital cinema. IDC offers a broad portfolio of advanced solutions including Pro Audio, Pro Video, Pro Cinema, and Pro Data for implementing broadcast content contribution and distribution applications. IDC's products and solutions are in demand for radio and television networks, digital cinema, 3D live events, ad insertion, satellite news gathering, sport contribution, ad insertion, VOD, and IPTV among others. IDC is headquartered in Ottawa, Canada, with regional offices in Arnhem, the Netherlands and in San Diego, California. IDC has installations in over 100 countries and service offices in Australia, Singapore and China with an international network of value-added partners and distributors. www.datacast.com
This press release contains forward-looking statements reflecting IDC's objectives, estimates and expectations that may involve risks and uncertainties. IDC's actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Factors that might cause actual results to differ materially include, but are not limited to, competitive developments; risks associated with IDC's growth; any difficulties with integrating acquired product lines into IDC's business and/or manufacturing procedures; any difficulties or disputes with IDC's subcontractors, contract manufacturers and suppliers; IDC's dependence on the development and growth of the satellite datacasting market; a lengthy and variable sales cycle for IDC's products and services; IDC's reliance on a small number of customers for a large percentage of its revenue; regulatory risks and intellectual property infringement. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof, except as expressly required by applicable law. Forward-looking statements are provided to assist external stakeholders in understanding IDC's expectations as at the date of this release and may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on such statements. More detailed information about potential factors that could affect IDC's financial and business results is included in the public documents IDC files from time to time with Canadian securities regulatory authorities and which are available on SEDAR at www.sedar.com, including, without limitation, IDC's Annual Information Form dated April 30, 2012.