RDM : reports fiscal 2017 first quarter financial results

February 8, 2017

WATERLOO, ON, January 26, 2017 - RDM Corporation ('RDM' or the 'Company') (TSX: RC), a leading provider of specialized software and hardware products for electronic payment processing, today reported its financial results for the first quarter of the year ending September 30, 2017. All financial results are reported in thousands of U.S. dollars unless otherwise stated.

'The payment processing portion of our business continues to build with an increase this quarter to 76% of total revenue,' said Randy Fowlie, President and CEO of RDM Corporation. 'The strength of our partnerships continues to drive organic growth with end user seats up 11% over the prior year. In addition, we won a couple non-bank opportunities during the quarter. Cash generation continues to be strong and the Board of Directors declared a quarterly dividend of $0.025, which is a 25% increase over the current dividend.'

Q1-2017 Press Release

Q1 Fiscal 2017 Highlights(Unless otherwise noted, comparisons are made between fiscal 2017 and fiscal 2016)

• Total revenue was $5,346 compared to $5,429
• Recurring Payment Processing revenue was $3,884, up 4% from $3,740
• Total Payment Processing revenue was $4,037, an increase of 5% from $3,840
• Digital Imaging revenue was $1,309 in Q1 2017 compared to $1,589
• Gross margin increased to 69% compared to 67%
• Adjusted EBITDA was $1,771 compared to $1,761, an increase of 1%.
• The Company added 1,578 end user seats and ended the quarter with 50,284 end user seats, an increase of 11%
• The Company generated $786 in cash from operations and ended the quarter with $31,252 in cash and cash equivalents
• The Board of Directors declared a quarterly cash dividend of CDN $0.025 per common share, a 25% increase over the quarterly dividend last year

Dividend

A quarterly dividend of CDN $0.025 per share will be paid on March 15, 2017 to shareholders of record on February 28, 2017. This represents a $0.005, or 25%, increase over the $0.02 dividend the Company previously paid per quarter. The dividends to be paid on March 15, 2017 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 fiscal 2017 first quarter and results on Thursday, January 26, 2017 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 ('MD&A') 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) and operating income do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Adjusted EBITDA is provided to assist management and investors in determining the Company's approximate operating cash flow before interest, income taxes, and depreciation and amortization, foreign exchange, stock-based compensation and one-time charges. 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.

About RDM Corporation

RDM Corporation provides large financial institutions with Remote Deposit Capture (RDC) solutions designed to help their clients simplify the way they do business. RDM processes over $600 billion in payments annually and helps financial institutions increase revenue, expand market share and improve customer service for over 80,000 end users.

Four of the top ten financial institutions in the United States use RDM's payment processing solutions. RDM serves 31 percent of the top 100 Fortune 500 companies including brokerage firms, big-box retailers, healthcare and insurance providers, and government entities. Working with clients for 30 years, RDM provides both software and hardware solutions including web-based and mobile RDC, and manufactures a wide range of digital imaging scanners. For more information, visit www.rdmcorp.com/.

Forward-looking statements

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.

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