Uniserve Communications Corporation

May 16, 2012 09:01 ET

Uniserve Communications Corporation: Positive Third Quarter Results Reverse Trend of the Previous Seven Quarters. Restructuring, New Products Signal Turnaround for ISP/Telecom Innovator

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 16, 2012) - Uniserve Communications Corporation (the "Company") (TSX VENTURE:USS) is pleased to announce that it has achieved positive earnings and EBITDA for the first time since Q3 2010. The company achieved an EBITDA for the quarter of $76,000 and net income of $236,000 on gross revenues of $1,921,000, a 5.5% increase over the previous quarter.

Uniserve continued to increase sales to its core business clients, which resulted in $145,000 of new business revenues over last quarter. Additionally, gross margin as a percentage of sales increased to 49.5% from 45.4%, which is 4.1% higher than the same period last year. Also of particular note is the decrease of service and delivery costs by 20.1% over the same period of the previous year and a decrease of 15.5% from the last quarter. Overall, since the first quarter of the current fiscal year, the Company has reduced its operations and service delivery costs by 36.1%

According to Uniserve Chief Financial Officer Chris Convey, "The improved financial performance of the Company is extremely positive given the difficult economic challenges we've been faced with. Through a targeted set of business initiatives, we've been able to increase sales and revenues in the right areas while reducing costs at the same time. Having restructured the inefficient parts of the business so that they function more optimally, we are definitely on the right track and anticipate our operational improvements continuing into next quarter and beyond."

One area that represents a significant growth opportunity is the Uniserve Cloud, a partnership between Uniserve, Joyent and Dell that provides a variety of Saas, Iaas, and Paas service offerings. During the quarter, the Company signed up its first customers and is achieving monthly recurring revenue while honing a concentrated marketing effort through partnership initiatives. The first initiative was signed in April with Wavefront™, an internationally known wireless technology incubator.

Uniserve Communications Corporation (TSX VENTURE:USS) is an industry leader in the integration and delivery of voice and data services over multiple IP networks directly or through wholesale partnerships to businesses and retail consumers throughout Canada.

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

Michael Schmidt, CEO

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this News Release.

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