Uniserve Communications Corporation

Uniserve Communications Corporation

October 30, 2013 16:41 ET

Uniserve Communications Corporation: Financial Results for the Three Months Ended August 31, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 30, 2013) - Uniserve Communications Corporation (TSX VENTURE:USS) (the "Company") wishes to announce the results for the three months ended August 31, 2013, as follows:

Three Months Ended
Aug. 31, 2013 Aug. 31, 2012
Revenue $ 1,576,377 $ 1,821,399
Cost of revenues 890,544 900,613
Gross margin $ 685,833 $ 920,786
Operations and service delivery expenses $ 619,942 $ 751,055
Amortization of property and equipment 186,625 81,602
Amortization of intangible assets 3,693 3,025
Amortization of deferred finance costs - 3,873
Sales and marketing 207,054 101,506
$ 1,017,314 $ 941,061
Operating profit (loss) $ (331,481) $ (20,275)

During the three months ended August 31, 2013, the Company reported an operating loss of $331,481 compared to a loss of $20,275 in the same period last year. The Company's EBITDA for the quarter was $(141,000) compared to $(27,000) for the same quarter last year. The growth in revenue that the Company expects to occur as a result of its sales initiatives has begun but has not yet reached the level needed to overcome the natural churn in accounts. The decrease in gross margin was primarily a result of the additional upfront costs related to the new security division.

Uniserve Communications Corporation (TSX VENTURE:USS) is an industry leader in the integration and delivery of voice, data and cloud computing services to businesses and retail consumers throughout Canada. For more information about Uniserve, its products and services please visit www.uniserve.com.

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

Bruce Sanderson, President and CEO

For more information please contact Investor & Corporate Relations at 604-395-3922 or invest@uniserve.com, or visit www.uniserve.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this News Release. Management has prepared this release and no regulatory authority has approved or disapproved the information contained herein. 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.

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