QuStream Corporation

QuStream Corporation

October 16, 2006 16:05 ET

QuStream Posts Record Third Quarter

TORONTO, ONTARIO--(CCNMatthews - Oct. 16, 2006) - QuStream Corporation ("QuStream") (TSX VENTURE:QVC) announced today that it has posted record bookings (note 1) for the third quarter of fiscal 2006. Significant results for the quarter include:

1. Record bookings of US$8.9 million,

2. Revenues for the third quarter of US$5.8 million, and

3. Backlog at the end of the third quarter of US$5.6 million.

Through three quarters of our fiscal year we have recorded revenues of US$13.6 million and go into the last quarter with a backlog of US$5.6 million of orders (note 2) that are expected to ship in the fourth quarter. Accordingly, on the strength of our third quarter booking performance, we are already poised to surpass our fiscal 2005 revenue of US$18.5 million.

"Given issues surrounding US Government business at the beginning of the year and the timing of other opportunities, we believed that the second half of the year would be much stronger than the first half. I am pleased to see an acceleration of strength in the commercial markets and a resurgence of US government booking activity in the third quarter," said Frederick L. Godard, Chairman, President and CEO.

Note 1:

The Company uses terms such as bookings, shipments and backlog. These terms are not defined by generally accepted accounting principles (GAAP). Our usage of these terms may vary from the usage adopted by other companies. We believe that the combination of bookings (purchase orders received by the company), shipments (orders shipped by the company and invoiced) and closing backlog (opening backlog, plus bookings less shipments) provides a useful indictor for determining how our products are being received by the market and the economic health of the market as it relates to demand for our products. Closing backlog is not a guarantee of future revenues and provides no information about the timing on which future revenue may be recorded. We report our bookings, shipments and backlog in US dollars to reflect the underlying currency of the majority of such contracts and, therefore, reduce the volatility that would result from converting the measure to Canadian dollars.

Note 2:

The Company has received notice that a previously announced order (see March 28, 2006 press release) has been scaled back as a result of current year budget reductions resulting in a smaller amount of equipment to be shipped in fiscal 2006. The Company has been advised that additional funds may become available in fiscal 2007 for additional equipment, however there is no certainty that this will occur. Accordingly, the Company has adjusted its carried backlog to reflect this information.

Learn more about QuStream's complete line of products at www.pesa.com and www.forteldtv.com

About QuStream

QuStream, through its wholly owned subsidiaries PESA and Fortel DTV™, is a global provider of integrated solutions to the creators and distributors of professional video content including the high-definition television and professional audio/video market segments. QuStream is headquartered in Toronto, Canada with offices in New York, Georgia, and Alabama. For more information, visit QuStream at www.qustream.com, www.pesa.com, and www.forteldtv.com.

All products mentioned herein are trademarked property of their respective owners.

Forward-Looking Statements

The statements made in this press release that are not historical facts contain forward-looking information that involves risk and uncertainties. All statements, other than statements of historical facts, which address QuStream's expectations, should be considered forward-looking statements. Such statements are based on management's exercise of business judgment as well as assumptions made by and information currently available to management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend" and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as contained in the Company's filings with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation, and do not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize.

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

Contact Information

  • QuStream Investor Contact:
    Paul Haber
    Chief Financial Officer
    (416) 385-2323 x 201
    Email: phaber@qustream.com