Look Communications reports first quarter 2010 results

TORONTO, Jan. 19 /CNW/ - Look Communications Inc. ("Look" or the "Corporation") (TSX Venture: LOK and LOK.A) today reported its operating and financial results for the first quarter of fiscal 2010, ended November 30, 2009.

Recent operating highlights include the following:

    
    -   On September 11, 2009, the Corporation received the final $50 million
        of consideration due from the Inukshuk Wireless Partnership
        ("Inukshuk") following the receipt of regulatory approval of the
        transaction from Industry Canada and the satisfaction of all
        remaining conditions precedent to the sale of Look's spectrum and
        broadcast licence;

    -   Following the sale of its web hosting, domain name, and Internet
        businesses during fiscal 2009, the Corporation successfully executed
        an agreement whereby its video subscribers were transitioned to Bell
        Canada;

    -   As of November 15, 2009 the Corporation was no longer offering
        service to any subscribers;

    -   As of December 31, 2009 the Corporation has decommissioned its
        wireless network across the provinces of Ontario and Quebec; and

    -   The Corporation has reduced its full-time equivalent staff from 63 at
        August 31, 2009 to six by December 31, 2009.
    

Financial highlights for the quarter ended November 30, 2009 included the following:

    
    -   Cash and cash equivalents and short-term investments at
        November 30, 2009 totalled $39.1 million which represents an increase
        of $24.8 million from August 31, 2009. This increase is due primarily
        to the receipt of the final $50 million of consideration due from
        Inukshuk partially offset by the payment of the Corporation's
        restructuring charges;

    -   Net loss for the quarter was $3.0 million, or a basic loss per share
        of $0.02; and

    -   Operating expenses for the quarter totalled $2.9 million, a decrease
        of $1.4 million or 31.1 per cent from the $4.3 million incurred
        during the quarter ended November 30, 2008.
    

The Corporation's remaining assets consist primarily of its present cash and short-term investment position of approximately $40 million, approximately $360 million of tax losses and the Milton facility and related infrastructure, which have been listed for sale.

The Corporation continues to pursue opportunities with interested parties, including income trusts, to maximize the value of its remaining tax assets. To facilitate achieving this objective, the Board of Directors has retained BMO Capital Markets to assist in this process.

As the Corporation finalizes its strategic direction, it will disclose this to shareholders at its next Annual and Special Meeting scheduled for February 23, 2010. The Corporation will continue to keep its shareholders apprised of any material developments as they occur.

The Board of Directors and Management would like to acknowledge the ongoing support of Look's parent company, Unique Broadband Systems, Inc., in helping Look to realize the maximum value for its remaining assets by, among other things, indicating that it will consider the sale of its controlling interest in Look to facilitate the full value of Look's tax losses.

About Look Communications Inc.

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 forecast.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    
    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS

    As at
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                                     November 30   August 31
                                                            2009        2009
    -------------------------------------------------------------------------

    ASSETS
    Total current assets                               $  42,836   $  67,288
    Restricted cash                                          350         380
    Property and equipment                                 1,901       1,995
    -------------------------------------------------------------------------
                                                       $  45,087   $  69,663
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Liabilities
    Total current liabilities                          $   4,552   $  26,144
    Long-term liability component of
     convertible debentures                                3,328       3,291
    -------------------------------------------------------------------------
    Total liabilities                                      7,880      29,435
    -------------------------------------------------------------------------

    Shareholders' equity
    Share capital                                         33,568      33,566
    Equity component of convertible debentures             1,478       1,479
    Contributed surplus                                   11,152      11,151
    Deficit                                               (8,991)     (5,968)
    -------------------------------------------------------------------------
    Total shareholders' equity                            37,207      40,228
    -------------------------------------------------------------------------
                                                       $  45,087   $  69,663
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
    DEFICIT

    Three months ended November 30, 2009 and 2008
    (In thousands, except per share amounts)
    -------------------------------------------------------------------------
                                                            2009        2008
    -------------------------------------------------------------------------

    Service and sales revenue                          $     434   $   3,588
    Carrier charges and cost of sales                        425       1,940
    -------------------------------------------------------------------------
    Gross margin from continuing operations                    9       1,648
    -------------------------------------------------------------------------
    Operating expenses                                     2,927       4,251
    -------------------------------------------------------------------------
    Loss from continuing operations before
     the undernoted                                       (2,918)     (2,603)
    Interest and finance charges, net                        (11)        (24)
    Accretion on liability component of
     convertible debentures                                 (111)       (107)
    Adjustment to gain on sale of spectrum and
     broadcast licence                                       (61)          -
    Gain on sale of other property and equipment               -           2
    -------------------------------------------------------------------------
    Loss for the period from continuing operations        (3,101)     (2,732)
    Income for the period from discontinued operations        78       4,531
    -------------------------------------------------------------------------
    Income (loss) and comprehensive income (loss)
     for the period                                       (3,023)      1,799
    Deficit, beginning of period                          (5,968)    (51,489)
    -------------------------------------------------------------------------
    Deficit, end of period                             $  (8,991)  $ (49,690)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Continuing operations
      Basic loss per share                             $   (0.02)  $   (0.02)
      Diluted loss per share                               (0.02)      (0.02)
    Discontinued operations
      Basic income per share                                   -        0.04
      Diluted income per share                                 -        0.04
    Income (loss) per share
      Basic                                                (0.02)       0.02
      Diluted                                              (0.02)       0.02
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number of shares outstanding
      Basic                                              127,484     125,946
      Diluted                                            127,484     125,946
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

    Three months ended November 30, 2009 and 2008
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                                            2009        2008
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
      Income (loss) for the period                     $  (3,023)  $   1,799
      Less: Income for the period from
       discontinued operations                               (78)     (4,531)
      Items not affecting cash                               291       1,322
      Changes in non-cash operating assets
       and liabilities                                   (22,292)        (96)
    -------------------------------------------------------------------------
    Cash used in continuing operations                   (25,102)     (1,506)
    Cash provided by discontinued operations                  78         507
    -------------------------------------------------------------------------
    Cash used in operating activities                    (25,024)       (999)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
    Cash provided by (used in) continuing
     operations                                           13,880          (7)
    Cash provided by discontinued operations                   -       1,957
    -------------------------------------------------------------------------
    Cash provided by investing activities                 13,880       1,950
    -------------------------------------------------------------------------

    Increase (decrease) in cash and cash equivalents     (11,144)        951
    Cash and cash equivalents, beginning of period        14,254       3,565
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of period           $   3,110   $   4,516
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

%SEDAR: 00013414E

SOURCE Look Communications Inc.

For further information: For further information: Peter Block, Investor and Media Relations, investorinfo@look.ca, (647) 259-3284

Organization Profile

Look Communications Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890