October 22, 2007 21:00 ET

Uniserve Communications Corporation Releases First Quarter 2008 Financial Statements Showing Year Over Year Growth of 51% and EBITDA of $1 Million for the Quarter

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2007) - Uniserve Communications Corporation ("Uniserve") (TSX VENTURE:USS) has released its financial statements for the quarter ended August 31, 2007, showing the consolidated financial effects of their recently acquired software and services businesses.

Revenues for the first quarter of fiscal 2008, grew by 51.3% to $8,880,973, as a result of the consolidation of revenues from acquisitions at the end of Q4, 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, operating primarily in the US.

Net Loss for the quarter was ($1,103,453) compared to a gain of $234,738 the previous year. The loss is attributable to an increase in the amortization of assets related to the recent transactions of $823,401, over the same quarter the previous year, and an increase in interest expenses of $763,626 over the same period, which include one-time and ongoing transaction costs associated with financing the recent acquisitions.

Gross Margin contribution increased by $2,044,429 to $5,202,498, for the quarter, or 64.7%. Margin as a percentage of revenue increased to 58.6% from 53.8% the previous year.

EBITDA for the year was $1,007,899, an increase of $338,836 (50.6%) from the previous year.

Total Assets at quarter-end increased by $22,561,129 to $$33,310,869. Total Liabilities increased by $20,577,387 to $28,001,396. The increases are attributable to the acquisitions of Parasun and KBT in the last quarter of fiscal year 2007.

"The Company's first quarter after the recent acquisitions was a period of integration", says William Spratt, President and CEO of Uniserve. "We are very excited about our prospects for future organic growth enabled by the technologies acquired in the recent transactions."

The Company would also like to announce changes to certain executive officers. Steven MacDonald, President of Parasun, has been appointed Chief Operating Officer of Uniserve. "Steven's success building Parasun into a world class software and services business, demonstrated an exceptional organizational capacity and customer orientation." said Wil Spratt, President and CEO of Uniserve. "We believe Steven's assistance across all of our operating platforms will greatly benefit the Business". Steven will bring Paul Needham, formerly Vice President of Operations at Parasun, and Mike Schmidt, formerly VP of Sales and Marketing at Parasun, into expanded roles at Uniserve as VP Operations and VP Sales, respectively.

In addition, the Company is announcing the departure of Sophie Leger, COO, Clarence Orleski, VP Operations and Darcy Kindred, CFO. "On behalf of the Board of Directors, we thank Sophie, Darcy and Clarence for their many contributions over the years and wish them the very best in their future endeavors", says Wil Spratt, President and CEO. A search for a replacement CFO is currently underway.

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

  • For more information or to coordinate an interview with
    representatives of Uniserve Communications Corporation
    please contact: Uniserve Communications
    William Spratt, President and CEO
    (604) 633-1348
    Website: www.uniserve.com