Mr. Randy Fowlie reports

RDM CORPORATION REPORTS FISCAL 2015 FIRST QUARTER FINANCIAL RESULTS

RDM Corp. today released its financial results for its fiscal 2015 first quarter ended Dec. 31, 2014. All figures are reported in thousands of United States dollars unless otherwise stated.

First-quarter fiscal 2015 highlights (unless otherwise noted, comparisons are made between first-quarter fiscal 2015 and first-quarter fiscal 2014 results):

• Total revenue increased 2 per cent to $5,846.
• Recurring payment processing services revenue increased 6 per cent to $3,243.
• Digital imaging revenue increased 10 per cent to $2,449 from $2,226.
• Gross profit increased 11 per cent to $3,433 (59 per cent of total revenue) from $3,087 (54 per cent of total revenue).
• Operating income increased 37 per cent to $1,017 from $741.
• Adjusted earnings before interest, taxes, depreciation and amortization improved 30 per cent to $1,376 from $1,061.
• Net income grew 44 per cent to $1,123 from $780.
• The company added 1,087 new end-user seats to bring its ITMS network to a total of 38,067 seats, an increase of 15 per cent from one year earlier and 3 per cent from the prior quarter.
• The company generated $852 in cash from operations during the quarter and ended first-quarter fiscal 2015 with cash and cash equivalents totalling $23,009.
• The board declared a quarterly cash dividend of 1.5 cents, a 50-per-cent increase from the quarterly dividend declared and paid over the last year.

"During the past quarter, we increased both our recurring revenue and digital imaging revenue over the prior year, resulting in strong margin improvement and adjusted EBITDA growing 30 per cent to $1,376," said Randy Fowlie, president and chief executive officer of RDM. "This translated into strong cash flow generation, allowing the board to increase our annual dividend by 50 per cent. We continue to see evidence of strong market acceptance, and our sales pipeline remains strong."

Dividend

As part of the company's quarterly dividend program, the board of directors declared a quarterly cash dividend of 1.5 cents per common share. The payment date will be March 5, 2015, to shareholders of record as of Feb. 19, 2015. This is a 50-per-cent increase from the one-cent-per-share quarterly dividend paid over the last year. Future declarations of dividends are subject to the final determination and discretion of the board of directors.

The dividends to be paid on March 5, 2015, are designated as eligible dividends for the purpose of Section 89 of the Income Tax Act (Canada).

Conference call

RDM will be hosting a conference call to discuss the company's 2015 first-quarter results on Thursday, Jan. 29, 2015, at 9 a.m. EDT. Dial-in numbers are 647-427-7450 or 1-888-231-8191. The call will be webcast live and archived at the company's website. Detailed financial results and management's discussion and analysis will be filed on SEDAR.

Non-IFRS (international financial reporting standards) measures

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted for foreign exchange gains and losses, stock-based compensation, and one-time charges) and operating income are 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 and operating income do not have any standardized meaning prescribed by IFRS and may not be comparable with 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 and operating income in making investment decisions about the company and measuring the operational results. A reconciliation of adjusted EBITDA to net income determined in accordance with IFRS is provided in the company's management's discussion and analysis.

         CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME
    (amounts in thousands of U.S. dollars, except per-share data)          

                                         Three months ended Dec. 31, 
                                              2014              2013
Revenue
Payment processing services                 $3,397            $3,525
Digital imaging products                     2,449             2,226
                                             5,846             5,751
Cost of revenue                              2,413             2,664
Gross profit                                 3,433             3,087
Operating expenses 
Sales and marketing                            750               766
Research and development                     1,163             1,056
General and administration                     503               524
                                             2,416             2,346
Income from operations                       1,017               741
Other items 
Foreign exchange gain                           16                54
Interest income                                 15                 9
Other income                                   120                 -
                                               151                63
Income before income taxes                   1,168               804
Current income tax expense                      45                24
Income for the period                        1,123               780
Income per share --
basic and diluted                             0.05              0.04

We seek Safe Harbor.