October 03, 2007 15:28 ET

Uniserve Communications Corporation Releases Annual Statements Showing Annual Growth of 28%

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2007) - Uniserve Communications Corporation (TSX VENTURE:USS) ("Uniserve") has released its financial statements for the year ended May 31, 2007 showing significantly higher revenues and detailing the acquisitions completed in the final quarter of the year ending May 31, 2007.

Revenues for the Fiscal 2007 grew by 28% to $23,297,449, resulting primarily from the acquisition in January 2006 of Inter.net. At the end of Q4, the Company completed acquisitions of digital phone network provider, Knowledge Based Telephony Systems Corp. ("KBT"), and Parasun Technologies Inc. ("Parasun"), a software and services provider to the cable industry. Beginning in Q1 of fiscal 08, these companies will accelerate Uniserve's revenue growth, add significant new proprietary product capability and expand the Company's trading area.

Annual Net Loss for the year was ($1,436,328) compared to a loss of ($748,138) the previous year. The increase is attributable to the amortization of stock option expenses and increased costs associated with the business acquisitions in the fourth quarter.

Gross Margin contribution increased by $2,424,294 to $12,007,675 or 25.3%. Margin as a percentage of revenue dropped slightly to 51.5% from 52.6% the previous year.

EBITDA for the year was $1,663,688 a decrease of $493,080 (22.9%) from the previous year. The decrease was primarily the result of an increase in expenses associated with the severance and related costs from the wind-down of a network operations centre in Virginia, after the Inter.net acquisition ($311,728) and the start-up costs associated with the creation of the new Professional Services division ($369,028).

Total Assets at year-end increased by $27,608,715 to $$38,733,029. Total Liabilities increased by $24,439,491 to $32,472,812. The increases are attributable to the acquisitions of Parasun and KBT in the last quarter of the fiscal year.

"The Company continues to grow strongly and is positioned to accelerate growth in the coming year ", says William Spratt, President and CEO of Uniserve. "The new product capabilities acquired in our recent transactions will enhance our traditional business and make strong contributions to organic growth for years to come."

For a detailed description and discussion of the financial results, please check the Company's public filings at Sedar.com.

About Uniserve Communications Corporation:

Uniserve Communications is an industry leader in the integration and delivery of voice and data services over multiple IP networks including Cable, ADSL, BPL and Wireless Broadband. Uniserve, using its proprietary software, delivers digital voice and data services directly or through wholesale partnerships to over 250,000 small business and retail consumers throughout the United States and Canada. Uniserve is a 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 or www.parasun.com or www.kinzin.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
    William Spratt
    President and CEO
    (604) 633-1348
    Website: www.uniserve.com