January 31, 2007 12:29 ET

Uniserve Communications Corporation Releases 2nd Quarter Statements Showing Year Over Year Revenue Growth of 43%, Net Income of $117,716 and EBITDA of $538,245

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 31, 2007) - Uniserve Communications Corporation ("Uniserve") (TSX VENTURE:USS) has released its financial statements for the quarter ended November 30, 2006 showing significantly higher revenues.

Revenues for the quarter, grew by 43% overall, to $5.72 million from $4.00 million for the same period last year. Most of the year's growth can be attributed to the successful acquisition and integration in 2006 of Inter.Net Canada Ltd., with operations in Ontario and Quebec.

Net income before tax improved to $117,716, or $0.01 per share, from ($45,703), or ($0.00) per share, for the same period the previous year. The improvement is due primarily to the reduction in amortization expenses to $313,841 for the quarter, down from $668,219 for the same quarter last year.

Gross Margin of 55% decreased from 59% for the same period the previous year, and the margin contribution grew to $3,152,345, an increase of 32% over the same period the previous year. The higher margin for the previous year's period was attributable to the recovery of overpayments made for network access to a major supplier resulting in a reduction in cost of goods. The higher dollar contribution resulted from the increase in the business base after the acquisition of Inter.net.

EBITDA for the quarter reduced to $538,245 from $703,138 for the same period the previous year. The difference is attributable to the increases in costs associated with new product development during the current quarter and the increased EBITDA that resulted from the lower cost of goods in the year ago quarter.

"Uniserve has invested in the development of innovative new products over the past quarters and we are excited by the impending launch of our new social networking software for families" says Wil Spratt, President and CEO of Uniserve. "The Company's financial performance has facilitated investment in this application and others that we will be introducing in the coming months, all of which underline our core values of delivering useful and convenient services that empower people and communities."

About Uniserve Communications Corporation:

Uniserve Communications delivers voice and data communications services to businesses and consumers in urban and rural markets across Canada. Uniserve is an industry leader in the integration of voice and data services over multiple IP networks including Cable, ADSL and Wireless Broadband. To service these networks, Uniserve has developed a proprietary ordering and provisioning system that allows customers to dynamically customize their own services, test new technologies and receive support through web portals and an award winning call centre. Uniserve is publicly traded company listed on the Canadian TSX.V exchange under the trading symbol "USS".

For more information about Uniserve, its products and services please visit www.uniserve.com.

Additional corporate and financial information may be found at www.sedar.com.

This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.

On Behalf of the Board, William Spratt, President and CEO

The statements contained in this news release that are not historical facts are forward looking statements. Such statements are based on management's estimates, assumptions and projections using available information. Uniserve cautions that actual financial results could differ materially from the current expectations due to a number of factors.

The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this release.

Contact Information

  • Uniserve Communications Corporation
    John Vickerstaff
    Vice President of Sales & Marketing
    (604) 647-0620
    Website: www.uniserve.com