Look Communications reports first quarter 2008 results



    Updates on 2008 AWS spectrum auction

    TORONTO and MONTREAL, Jan. 29 /CNW/ - Look Communications Inc. ("Look" or
the "Corporation") (TSX Venture: LOK and LOK.A) today reported its financial
and operating results for the first quarter of fiscal 2008, ended November 30,
2007.

    
    Financial highlights for the first quarter ended November 30, 2007
    included the following:

    -  Gross revenues for the quarter ended November 30, 2007 were
       $5.4 million compared to $6.6 million for the quarter ended
       November 30, 2006;
    -  Operating expenses decreased $0.3 million or 6.5% to $4.5 million for
       the quarter ended November 30, 2007 (quarter ended November 30,
       2006 - $4.8 million);
    -  EBITDA(*) (earnings before interest, financing charges, income taxes,
       depreciation, and amortization) for the quarter ended November 30,
       2007 was negative $0.5 million compared to EBITDA of positive
       $0.1 million for the quarter ended November 30, 2006;
    -  The net loss for the quarters ended November 30, 2007 and November 30,
       2006 was $1.8 million or $0.01 per share and $1.4 million or $0.01 per
       share respectively;
    -  Unrestricted cash and cash equivalents decreased by $2.7 million or
       34.5% during the quarter ended November 30, 2007 from $7.8 million at
       August 31, 2007 to $5.1 million at November 30, 2007 (quarter ended
       November 30, 2006 - cash increased by $1.7 million from $5.1 million
       to $6.8 million).
    

    During the first quarter of fiscal 2008, on November 28, 2007, the
Minister of Industry, the Honourable Jim Prentice, announced the final policy
decisions for the 2008 AWS spectrum auction of 105 MHz, to commence on May 27,
2008, in a policy document entitled "Policy Framework for the Auction for
Spectrum Licences for Advanced Wireless Services and other Spectrum in the
2 GHz Range". The announcement by the Minister of Industry included, amongst
other things, the following significant policy decisions:

    
    1.  Mandatory roaming provisions;
    2.  Mandatory antenna tower and site sharing;
    3.  Binding arbitration for commercial negotiations;
    4.  A set aside of 40 MHz of AWS spectrum for new entrants;
    5.  50 MHz of AWS spectrum, 10 MHz of spectrum as an extension to the
        existing PCS band and 5 MHz of spectrum as one way broadcast spectrum
        is available to all bidders; and
    6.  Minimum opening bids of over $500 million for all geographic areas.
    

    The Corporation believes the new policy decisions will foster better and
more diverse services for consumers. In particular, the spectrum set aside,
mandated roaming and antenna tower and site sharing, coupled with binding
arbitration to conclude commercial agreements, are likely to encourage
increased competition and lower prices in Canada's wireless industry.
    On December 22, 2007, Industry Canada released Notice No.
DGRB-011-07 - Licensing Framework for the Auction for Spectrum Licenses for
Advanced Wireless Services and other Spectrum in the 2 GHz Range. This notice
outlines, amongst other things, the rules and requirements for the competitive
bidding process established by the Minister of Industry, and the financial
deposits that are required on application by bidders. Questions may be
submitted to Industry Canada in respect of the auction and the policy
decisions contained in the Minister's announcement on November 28, 2007, and
comments may be submitted to Industry Canada in respect of the policy
decisions on mandatory roaming and tower and site sharing by January 22, 2008.
Industry Canada has indicated that it will post answers to these questions and
finalize license conditions on roaming and tower and site sharing by February
27, 2008. Other key events and dates in respect of the auction are as follows:

    
    1.  The deadline for bid applications is March 10, 2008;
    2.  Industry Canada will publish the list of applicants on March 14,
        2008;
    3.  Industry Canada will publish the list of qualified bidders on
        March 31, 2008;
    4.  Industry Canada will hold a mock auction for qualified bidders on
        May 21-23, 2008; and
    5.  The AWS auction will commence on May 27, 2008.
    

    In addition, on January 24, 2008, the Federal Communications Commission
("FCC") in the United States commenced the 700 MHz auction offering an
additional 62 MHz of spectrum which is expected to raise in excess of $10
billion.
    New entrants such as Google Airwaves Inc., Vulcan Spectrum LLC (founded
and chaired by Microsoft co-founder Paul Allen) and Chevron are participating
in the 700 MHz auction and the Corporation believes that this new influx of
bidders signals a new era in the mobile information, communications, and
entertainment services in North America. The Corporation believes that in
general, new services, lower prices, and greater choices will soon be the norm
for North American consumers. In addition, Canadian service providers are
behind the service offerings in Korea, China, and Japan and will continue to
lag until such time that the Canadian service providers utilize global
technologies and equipment rather than those developed solely for the North
American market.

    The following table reconciles net loss to earnings before interest,
financing charges, income taxes, depreciation, and amortization:

    
    Three months ended November 30, 2007 and 2006
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                                         2007           2006
    -------------------------------------------------------------------------
    Net loss for the period                      $     (1,815)  $     (1,380)
    Interest and finance charges, net                     (26)            (4)
    Amortization of capital assets and deferred
     charges                                            1,275          1,383
    Accretion on liability component of
     convertible debentures                                92             92
    -------------------------------------------------------------------------
    EBITDA                                       $       (474)  $         91
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    Management views EBITDA as an important measure of operating performance
    of the Corporation; however, since EBITDA does not have any standardized
    meaning prescribed by Canadian GAAP, it may not be considered in
    isolation of GAAP measures such as (1) net loss, as an indicator of
    operating performance or (2) cash flows from operating, investing, and
    financing activities, as a measure of liquidity. We believe, however,
    that it is an important measure as it allows us to assess our ongoing
    business without the impact of depreciation or amortization expenses as
    well as non-operating factors. It is intended to indicate our ability to
    incur or service debt and invest in capital assets while allowing us to
    compare our business to our peers and competitors. This measure is not a
    defined term under Canadian GAAP and might not be comparable to similar
    measures presented by other issuers.

    About Look Communications Inc.

    Look's mission is to be an M(3) - Mobile Multi Media - entertainment and
information service provider in Ontario and Québec. The Corporation currently
delivers a full range of communications services, including high-speed and
dial-up Internet access, Web applications, digital television distribution,
and superior customer service to both the business and residential markets.
Look's shares are listed on the TSX Venture Exchange under the symbols "LOK"
for Multiple Voting Shares and "LOK.A" for Subordinate Voting Shares. Look's
website may be found at www.look.ca.

    The corporate information contained in this release includes
forward-looking statements regarding future events and the future performance
of Look that involve risks and uncertainties that could cause actual results
to differ materially. Assumptions used in the preparation of such information,
although considered reasonable by Look at the time of preparation, may prove
to be incorrect. The actual results achieved may vary from the information
provided herein and the variations may be material. Consequently, there is no
representation by Look that actual results achieved will be the same in whole
or in part as those forecasts.

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

    For further information, please review the Corporation's annual audited
consolidated financial statements and management's discussion and analysis of
financial condition and results of operations for the years ended August 31,
2007 and 2006.



    
    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS

    As at
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                                  November 30      August 31
                                                         2007           2007
    -------------------------------------------------------------------------

    ASSETS
    Total current assets                         $      9,065   $      9,398
    Capital assets, net                                11,254         12,508
    Deferred charges, net                                  92            129
    -------------------------------------------------------------------------
                                                 $     20,411   $     22,035
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
    Liabilities
    Total current liabilities                    $     16,274   $     16,094
    Long-term debt                                      1,776          1,800
    Liability component of convertible debentures       2,700          2,702
    -------------------------------------------------------------------------
    Total liabilities                                  20,750         20,596
    -------------------------------------------------------------------------

    Shareholders' equity/(deficit)
    Share capital                                      32,949         32,946
    Equity component of convertible debentures          1,489          1,490
    Contributed surplus                                10,868         10,833
    Deficit                                           (45,645)       (43,830)
    -------------------------------------------------------------------------
    Total shareholders' equity/(deficit)                 (339)         1,439
    -------------------------------------------------------------------------
                                                 $     20,411   $     22,035
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED
    STATEMENTS OF OPERATIONS AND DEFICIT

    Three months ended November 30, 2007 and 2006
    (In thousands of dollars, except shares and per share amounts)
    -------------------------------------------------------------------------

                                                         2007           2006
    -------------------------------------------------------------------------

    Service and sales revenue                    $      5,419   $      6,636
    Carrier charges and cost of sales                   2,691          3,142
    -------------------------------------------------------------------------
    Gross margin                                        2,728          3,494
    -------------------------------------------------------------------------
    Operating expenses                                  4,477          4,786
    -------------------------------------------------------------------------
    Loss from operations                               (1,749)        (1,292)
    Interest and finance charges, net                      26              4
    Accretion on liability component of
     convertible debentures                               (92)           (92)
    -------------------------------------------------------------------------
    Loss and comprehensive loss                        (1,815)        (1,380)
    Deficit, beginning of period                      (43,830)       (31,890)
    -------------------------------------------------------------------------
    Deficit, end of period                       $    (45,645)  $    (33,270)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted loss per share             $      (0.01)  $      (0.01)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number of shares
     outstanding                                  125,211,607    123,938,976
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED
    STATEMENTS OF CASH FLOWS

    Three months ended November 30, 2007 and 2006
    (In thousands of dollars)
    -------------------------------------------------------------------------

                                                         2007           2006
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    Loss for the period                          $     (1,815)  $     (1,380)
    Add items not affecting cash:
      Amortization of capital assets and deferred
       charges                                          1,275          1,383
      Amortization of stock-based compensation             35             20
      Accretion on liability component of
       convertible debentures                              92             92
    -------------------------------------------------------------------------
                                                         (413)           115
    Changes in non-cash operating working capital      (2,280)         1,682
    -------------------------------------------------------------------------
    Cash provided by/(used in) operating activities    (2,693)         1,797
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Repayment of obligations under capital leases          (8)           (15)
    -------------------------------------------------------------------------
    Cash used in financing activities                      (8)           (15)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Purchase of capital assets                             (8)          (125)
    Decrease in restricted cash                             8             13
    -------------------------------------------------------------------------
    Cash used in investing activities                       -           (112)
    -------------------------------------------------------------------------

    Increase/(decrease) in cash and cash
     equivalents                                       (2,701)         1,670
    Cash and cash equivalents, beginning of period      7,828          5,102
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of period     $      5,127   $      6,772
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00013414E




For further information:

For further information: Peter Block, Investor and Media Relations,
investorinfo@look.ca, (403) 531-0331, (416) 586-0180

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