QuStream Corporation
TSX VENTURE : QVC

QuStream Corporation

January 05, 2007 16:05 ET

QuStream Provides Fiscal 2006 Update

TORONTO, ONTARIO--(CCNMatthews - Jan. 5, 2007) - QuStream Corporation ("QuStream") (TSX VENTURE:QVC) announced today that orders (note 1) in fiscal 2006 grow 31% while revenue grew 6%.

Fiscal 2006 orders totaled US$21.3 million, compared to US$16.3 million in fiscal 2005 an increase of 31%. This increase was achieved through significant growth with new and existing commercial customers. The growth was achieved despite a significant reduction in orders from the US Government due to delays in passing the fiscal 2006 US Government budget.

Fiscal 2006 revenues reached US$19.6 million up 6% from the US$18.5 million earned last year. Fourth quarter revenues were approximately US$6.0 million, compared to US$4.2 million recorded in the same period last year, however fell short of management expectation due to supply chain challenges with our subcontract manufacturers that occurred late in the fourth quarter. Remedial steps have been taken and none of our customers were impacted. Orders not shipped in the fourth quarter of 2006 are expected to ship early in the first quarter of 2007.

"While I am disappointed by the weakness from US Government orders in fiscal 2006 and the recent temporary supply chain management challenges, I am pleased with the overall growth in orders that we booked this year," said Frederick L. Godard, Chairman, President and CEO. "This growth reflects the success of our new products and strategies in penetrating commercial markets. I look forward to building on our success as we continue to launch new products and work with existing and new partners to provide effective solutions for their video processing requirements."

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.
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