RDM Corporation Reports Fiscal 2013 First Quarter Results

Growth in Payment Processing Drives Higher Margins 
Toronto Stock Exchange Symbol: RC 
WATERLOO, ON, Jan. 31, 2013 /CNW/ - RDM Corporation (TSX: RC), a leading 
provider of specialized software and hardware products for electronic payment 
processing, today reported its financial results for the three-month period 
ended December 31, 2012. All figures are reported in U.S. dollars unless 
otherwise stated. 
Q1 2013 Highlights 


    --  Total revenue was $4.8 million in the first quarter of fiscal
        2013, an increase of 5.8% from $4.5 million in Q1 2012.
    --  Payment Processing Services revenue was $3.1 million, up 14%
        from $2.7 million in Q1 2012.
    --  Revenue for Digital Imaging Products came in at $1.7 million,
        7% below Q1 of 2012.
    --  Gross profit was $2.7 million, or 58% of revenues in Q1 2013,
        compared to $2.2 million or 49% of revenues in Q1 2012.
    --  The Company added 1,147 new end user seats to bring its ITMS
        network to 29,658 seats, an increase of 19% from one year
        earlier.
    --  Adjusted EBITDA was $559,000 in the first quarter of 2013, up
        from $158,000 for the same period last year.
    --  Net income for the quarter came in at $192,000, or $0.01 per
        share, compared to $144,000, or $0.01 per share last year.
    --  The Company generated $642,000 in cash from operations during
        the quarter and ended the period with a cash balance of $19.4
        million.
    --  The Company added two new financial services customers during
        the quarter.

Randy Fowlie, President and CEO of RDM, stated: "We are pleased with the solid 
growth in Payment Processing Services revenue. However, the business climate 
in the U.S. continues to be difficult and revenues from Digital Imaging 
products were slightly behind expectations. That said, overall revenues were 
up compared to last year and we saw a significant improvement in the gross 
margin for both product lines, coming in at 67% and 40% respectively, as 
compared to 51% and 37% respectively for the same period last year."

"With well over a thousand end user seats added in the quarter to our ITMS 
network, the product mix continues to shift towards our higher margin business 
and is a strong driver of profitability. In addition, we added two new 
financial institutions this past quarter. Later in the year, we will launch an 
upgrade of our hardware, which should further strengthen RDM's position in the 
POS scanner field."

Conference Call
RDM will be hosting a conference call to discuss the Company's third quarter 
results on 31 January 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 on www.sedar.com.

Non-IFRS Measures
Adjusted EBITDA (earnings before interest, taxes, depreciation and 
amortization adjusted for foreign exchange gains and losses, stock-based 
compensation and one time charges) is provided to assist management and 
investors in determining the Company's approximate operating cash flows before 
interest, income taxes, and depreciation and amortization. Adjusted EBITDA 
does not have any standardized meaning prescribed by IFRS and may not be 
comparable to similar measures presented by other companies. Management 
believes that RDM shareholders and potential investors in RDM use non-IFRS 
financial measures such as adjusted 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.

This news release contains forward-looking statements. Forward-looking 
statements are based on estimates and assumptions made by RDM in light of its 
experience and its perception of historical trends, current conditions and 
expected future developments, as well as other factors that RDM believes are 
appropriate in the circumstances. Many factors could cause RDM's actual 
results, performance or achievements to differ materially from those expressed 
or implied by forward-looking statements. Risk factors relating to RDM are 
discussed in the Risks and Uncertainties section of RDM's Annual Information 
Form and year-end Management's Discussion and Analysis. These factors should 
be considered carefully, and readers should not place undue reliance on RDM's 
forward-looking statements. RDM has no intention and undertakes no obligation 
to update or revise any forward-looking statements, whether as a result of new 
information, future events or otherwise.

RDM CORPORATION
Condensed Consolidated Interim Balance Sheets
(Amounts in thousands of U.S. Dollars)

(Unaudited)
                                              
                           December 31, 2012         September 30, 2012

Assets:                                                                
                                                                       

Current assets:                                                        
       Cash and cash       $          19,366                  $  18,897
       equivalents
       Accounts receivable             2,812                      3,094
       Inventories                     2,930                      2,469
       Investment tax                    150                        336
       credit receivable
       Prepaid and other                 636                        569
       assets
       Derivative assets                  47                         63

Total current assets                  25,941                     25,428
                                                                       

Investment tax credits                   409                        453

Property and equipment                 2,030                      1,951

Intangible assets                        742                        860

Total assets               $          29,122                  $  28,692
                                                                       

Liabilities and                                                        
shareholders' equity:
                                                                       

Current liabilities:                                                   
       Accounts payable    $           2,816                      2,577
       and accrued                                            $
       liabilities
       Deferred revenue                  282                        275

Total current liabilities              3,098                      2,852
                                                                       

Shareholders' equity:                                                  
       Share capital                  19,979                     19,960
       Contributed surplus             2,365                      2,323
       Accumulated other                  47                        116
       comprehensive
       income
       Retained earnings               3,633                      3,441

Total shareholders' equity            26,024                     25,840

Contingencies                                                          

Total liabilities and      $          29,122                  $  28,692
shareholders' equity

RDM CORPORATION
Condensed Consolidated Interim Statements of Income 
(Amounts in thousands of U.S. Dollars, except per share data)

(Unaudited)
                                                    

Three months ended December 31                2012                 2011
                                                                       

Revenue:                                                               
             Payment Processing   $          3,108       $        2,723
             Services
             Digital Imaging                 1,659                1,783
             Products
                                             4,767                4,506

Cost of revenue                              2,018                2,293

Gross profit                                 2,749                2,213
                                                                       

Operating expenses:                                                    
             Sales and marketing               841                  898
             Research and                    1,095                  964
             development
             General and                       555                  526
             administration
                                             2,491                2,388
                                                                       

Results from operating activities              258                (175)
                                                                       

Other items:                                                           
             Foreign exchange                 (40)                  355
             gain (loss)
             Interest                           12                   28
                                              (28)                  383
                                                                       

Income before income taxes                     230                  208

Current income tax expense                      38                   64

Income for the period             $            192       $          144
                                                                       

Income per share  - basic and     $           0.01       $         0.01
diluted

RDM CORPORATION
Condensed Consolidated Interim Statements of Comprehensive Income 
(Amounts in thousands of U.S. Dollars)

(Unaudited)
                                                         

Three months ended December 31                     2012           2011
                                                                      

Income for the period                        $      192       $    144
                                                                      

Other comprehensive income:                                           
       Effective portion of changes in             (69)             87
       fair value of cash flow hedges

Comprehensive income                         $      123       $    231



RDM CORPORATION
Condensed Consolidated Interim Statements of Changes in Shareholder's Equity
(Amounts in thousands of U.S. Dollars)

(Unaudited)
                                                                                       
                                                      Accumulated
                                                         other
                         Share         Contributed   comprehensive        Retained
                        capital          surplus         income           earnings             Total

Balance as at   $           19,960 $           2,115 $            - $           1,650 $           23,725
October 1, 2011

  Total                                                                                                 
  comprehensive
  income for
  the period: 
    Income for                   -                 -              -               144                144
    the period
    Effective                    -                 -             87                 -                 87
    portion of
    changes in
    fair value
    of cash
    flow hedges
                                 -                 -             87               144                231

  Stock-based                    -                59              -                 -                 59
  compensation 

Balance as at   $           19,960 $           2,174 $           87 $           1,794 $           24,015
December 31,
2011

Balance as at   $           19,960 $           2,323 $          116 $           3,441 $           25,840
September 30,
2012

  Total                                                                                                 
  comprehensive
  income for
  the period:
    Income for                   -                 -              -               192                192
    the period
    Issuance of                 19               (4)              -                 -                 15
    share
    capital
    Effective                    -                 -                                -               (69)
    portion of                                                 (69)
    changes in
    fair value
    of cash
    flow hedges
                            19,979             2,319             47             3,633             25,978

  Stock-based                    -                46              -                 -                 46
  compensation

Balance as at   $           19,979 $           2,365 $           47 $           3,633 $           26,024
December 31,
2012

RDM CORPORATION
Condensed Consolidated Interim Statements of Cash Flows
(Amounts in thousands of U.S. Dollars)

(Unaudited)
                                                      

Three months ended December 31                  2012               2011
                                                                       

Cash provided by (used in):                                            
                                                                       

Operations:                                                            

Income for the period                $           192 $              144

  Items not involving cash:                                            
    Depreciation of property and                 137                186
    equipment
    Amortization of intangible                   118                 88
    assets
    Stock-based compensation                      46                 59
    Interest earned                             (12)               (25)
    Exchange gains on cash held                (100)              (389)
    in foreign currency

Change in non-cash operating                     246              (252)
working capital

Cash provided by operations                      627              (189)

Interest received                                 15                 11

Net cash provided by (used in)                   642              (178)
operations

Financing:                                                             

  Issuance of share capital                       15                  -

  Repurchase of share capital                      -                  -

Cash provided by financing                        15                  -
activities
                                                                       

Investing:                                                             

  Purchase of property and                     (216)               (21)
  equipment

  Additions to intangible assets                   -                  -

Cash used in investing activities              (216)               (21)
                                                                       

Exchange gains on cash held in                    28                476
foreign currency

Increase in cash and cash                        469                277
equivalents

Cash and cash equivalents,                    18,897             14,815
beginning of period

Cash and cash equivalents, end of    $        19,366 $           15,092
period





Randy Fowlie CEO & President RDM Corporation (519) 746-8483 x340 
rfowlie@rdmcorp.com

Rui Malhinha Chief Financial Officer RDM Corporation (519) 746-8483 x284 
rmalhinha@rdmcorp.com

SOURCE: RDM Corporation

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CO: RDM Corporation
ST: Ontario
NI: FIN ECOM CPR ELE ERN CONF 

-0- Jan/31/2013 12:00 GMT