April 30, 2007 21:18 ET

Uniserve Communications Corporation Releases 3rd Quarter Statements Showing Year Over Year Revenue Growth of 37% and EBITDA of $458,467

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 30, 2007) - Uniserve Communications Corporation (TSX VENTURE:USS) ("Uniserve") has released its financial statements for the quarter ended February 28, 2007, showing continued strong growth in revenues.

Revenues for the quarter, grew by 37% overall, to $5.82 million from $4.23 million over the same period last year. Year to date revenue for the 9-month period increased to $17.4 million from $12.26 million the previous year, an increase of 42%. Most of the year's growth can be attributed to the successful acquisition in January 2006 of Inter.Net Canada Ltd., with operations in Ontario and Quebec.

Net income before tax improved to $38,597, or $0.01 per share, from ($329,039), or ($0.02) per share, for the same period the previous year. The improvement is due primarily to the increased margin contribution resulting from the Inter.net acquisition.

Gross Margin of 51% decreased from 55% for the same period the previous year, but the margin contribution grew by 58% to $2,986,100 from the previous year's $1,894,481. The higher margin for the previous year's period was partially attributable to a higher proportion of that year's revenue being generated by higher margin dial-up access accounts relative to the lower margin high-speed access accounts. The higher contribution was primarily the result of an increase in the business base resulting from the acquisition of Inter.net. The Company now generates the majority of its access revenue from High-speed accounts and will continue to proactively convert customers to High-speed accounts to facilitate the sale of complimentary products requiring high-speed connectivity, like local and long distance digital voice services. Higher margin contribution from these complementary services will result in the bundled service maintaining similar overall margins and the bundled service will assist in stabilizing the recurring revenue stream.

EBITDA for the quarter increased to $458,647 from $146,683 over the same period the previous year. The improvement is attributable to the improvement in the overall margin contribution resulting from the Inter.net acquisition.

"Uniserve continues to execute on its growth strategy and we are pleased with the financial performance to date", says Wil Spratt, President and CEO of Uniserve. "With the addition of Parasun, their management team, strong organic growth and great customer relationships, we believe our growth will accelerate as we expand into new markets with complimentary products."

About Uniserve Communications Corporation:

Uniserve Communications delivers voice and data communications services to businesses and consumers in urban and rural markets across Canada. Uniserve is an industry leader in the integration of voice and data services over multiple IP networks including Cable, ADSL and Wireless Broadband. To service these networks, Uniserve has developed a proprietary ordering and provisioning system that allows customers to dynamically customize their own services, test new technologies and receive support through web portals and an award winning call centre. Uniserve is 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.

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

  • Uniserve Communications Corporation
    John Vickerstaff
    Vice President of Sales & Marketing
    (604) 647-0620
    Website: www.uniserve.com