October 31, 2006 18:44 ET

Uniserve Communications Corporation Releases First Quarter Statements Showing Year Over Year Revenue Growth of 46%, Net Income of $234,738 and EBITDA of $663,847

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 31, 2006) - Uniserve Communications Corporation (TSX VENTURE:USS) ("Uniserve") has released its financial statements for quarter ended August 31, 2006 showing significantly higher revenues and gross margins.

Revenues for the quarter, grew by 46% overall, to $5.87 million from $4.20 million for the same period last year. Most of the year's growth can be attributed to the successful acquisition and integration in 2006 of Inter.Net Canada Ltd., with operations in Ontario and Quebec.

Net income before tax improved to $234,738, or $0.01 per share, from ($331,472), or ($0.02) per share, for the same period the previous year. The improvement is due primarily to the reduction in amortization expenses to $315,464 for the quarter, down from $637,876 for the same quarter last year.

Gross Margin of 54% improved from 49% for the same period the previous year, and the margin contribution grew to $3,158,069, an increase of 61% over the same period the previous year. The improvement is the result of increased revenue from acquisitions, the higher margin product profile of the acquired companies and greater operating efficiencies being achieved with the larger business base.

EBITDA for the quarter improved to $663,847 from $423,483 for the same period the previous year, an overall increase of 57%. Reductions in operating costs (resulting from further efficiencies achieved from the Inter.Net acquisition) are expected to be realized over the coming months, and should contribute to improvements in EBITDA.

"Uniserve is continuing to execute on its strategy of building a national IP based services business in Canada", says Wil Spratt, President and CEO of Uniserve. "The Company's financial performance has facilitated investment in the development of innovative new services that we believe will enhance our market position over the coming year and that underline our core values of delivering useful and convenient services that empower people and communities."

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

For more information or to coordinate an interview with representatives of Uniserve Communications Corporation or Inter.net Canada, please see contact below.

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
    John Vickerstaff
    Vice President of Sales & Marketing
    (604) 647-0620