WATERLOO, ON, July 29, 2011 /CNW/ - RDM Corporation (TSX:RC), a leading developer of specialized software and hardware products for electronic payment processing, today reported its financial results for the three month period ended June 30, 2011. All figures are reported in Canadian dollars unless otherwise stated.
Q3 2011 Highlights
- Total revenue was $4.6 million in the third quarter of fiscal 2011, compared to $4.8 million in the third quarter of 2010. Excluding the effect of exchange, revenue would have increased 4% over the prior year quarter.
- Payment Processing Services revenue of $2.5 million was up $0.1 million over Q3 2010.
- Digital Imaging Products revenue of $2.1 million was down $0.2 million from Q3 2010.
- Gross profit was $1.9 million or 41% of revenues in the third quarter of 2011, compared to $1.8 million or 37% of revenues in the third quarter of 2010.
- End user locations of our Payment Processing Services increased from 19,891 to 20,776 seats during the third quarter, and compares to 18,500 in the third quarter of the prior year.
- Net income was $26,000 or $0.00 per share, compared to a net loss of $1,049,000 or $(0.05) per share in Q3 2010.
- Cash and equivalents were $14.7 million at June 30, 2011.
"We continued to make progress towards our priority of returning the company to profitability," said Randy Fowlie, President and Chief Executive Officer of RDM Corporation. "Our gross profit percentage has improved and we have reduced our operating expenses compared to last year, resulting in a bottom line improvement in excess of $1 million for the quarter. We also expanded our recurring revenue base this quarter with the addition of 885 end users to our payment processing network, a growth rate of 7% over the previous quarter."
Conference Call
RDM will be hosting a conference call to discuss the Company's third quarter results on July 29, 2011 at 9:00 a.m. EDT. Dial-in numbers are 647-427-7450 or 1-888-231-8191. The call will be webcast live and archived at www.rdmcorp.com. Detailed financial results and Management's Discussion and Analysis will be filed onwww.sedar.com.
Normal Course Issuer Bid
The Company's current Normal Course Issuer Bid expires on August 8, 2011. RDM's Board of Directors has approved a new Normal Course Issuer Bid. The Bid is subject to regulatory approval.
Non-GAAP Measures
EBITDA (earnings before interest, taxes, depreciation and amortization) is provided to assist management and investors in determining the Corporation's approximate operating cash flows before interest, income taxes, and depreciation and amortization. EBITDA does not have any standardized meaning prescribed by Canadian GAAP and may not be comparable to similar measures presented by other companies. Management believes that RDM shareholders and potential investors in RDM use non-GAAP financial measures such as EBITDA in making investment decisions about the Company and measuring the operational results.
About RDM Corporation
RDM Corporation is headquartered in Waterloo, Ontario and trades on the Toronto Stock Exchange under the symbol RC. RDM is a leading provider of specialized software and hardware products for electronic payment processing. RDM has pioneered electronic check conversion systems and web based image and transaction management services for banks, retailers, payment processors and government agencies as well as print quality control and image quality systems for a variety of global customers. For more information, visit RDM's website at www.RDMCorp.com.