Look Communications reports second quarter 2010 results

Not recommencing Management Services Agreement with UBS

TORONTO, April 22 /CNW/ - Look Communications Inc. ("Look" or the "Corporation") (TSX Venture: LOK and LOK.A) today reported its financial and operating results for the second quarter of fiscal 2010, ended February 28, 2010.

As part of its ongoing restructuring plan, Look also announced that its Board of Directors has notified its parent company, Unique Broadband Systems ("UBS"), that it will not be recommencing the Management Services Agreement ("MSA") on its May 19, 2010 anniversary date. The decision not to recommence the MSA means that it will expire on the completion of the existing term, being May 19, 2012, or such earlier date that is mutually agreed to by the Corporation and UBS. Since the Corporation has maintained an annual pre-paid fee of $2.4 million, the cash impact to Look for annual fees over the remaining term of the MSA will be $2.4 million.

Operating highlights for the quarter include the following:

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

        -  The Corporation has reduced its full-time equivalent staff from 21
           at November 30, 2009 to six by February 28, 2010.
    

Financial highlights for the quarter included the following:

    
        -  Cash and cash equivalents and short-term investments at February
           28, 2010 totalled $35.1 million, which represents an increase of
           $20.8 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;

        -  Operating expenses for the quarter totalled $1.8 million, a
           decrease of $3.0 million or 62.9 per cent from the $4.8 million
           incurred during the quarter a year ago; and

        -  Net loss for the quarter was $1.9 million, or a basic loss per
           share of $0.02.
    

The Corporation continues to pursue opportunities with interested parties to maximize the value of its remaining assets consisting primarily of its cash and short-term investment position of approximately $35 million, approximately $360 million of tax attributes and the Milton facility and related infrastructure.

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)
    -------------------------------------------------------------------------
                                                     February 28   August 31
                                                            2010        2009
    -------------------------------------------------------------------------
    ASSETS
    Total current assets                               $  38,608   $  67,288
    Restricted cash                                          316         380
    Property and equipment                                 1,831       1,995
    -------------------------------------------------------------------------
                                                       $  40,755   $  69,663
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Liabilities
    Total current liabilities                          $   2,081   $  26,144
    Liability component of convertible debentures          3,367       3,291
    -------------------------------------------------------------------------
    Total liabilities                                      5,448      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                                              (10,891)     (5,968)
    -------------------------------------------------------------------------
    Total shareholders' equity                            35,307      40,228
    -------------------------------------------------------------------------
                                                       $  40,755   $  69,663
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED
    STATEMENTS OF OPERATIONS AND DEFICIT

    Three and six months ended February 28, 2010 and 2009
    (In thousands, except per share amounts)
    -------------------------------------------------------------------------
                                  Three months ended        Six months ended
                                     February 28              February 28
                                    2010        2009        2010        2009
    -------------------------------------------------------------------------
    Service and sales revenue  $       -   $   3,327   $     434   $   6,915
    Carrier charges and cost
     of sales                          -       1,814         425       3,754
    -------------------------------------------------------------------------
    Gross margin from
     continuing operations             -       1,513           9       3,161
    -------------------------------------------------------------------------
    Expenses                       1,788       4,822       4,715       9,073
    -------------------------------------------------------------------------
    Loss from continuing
     operations before
     the undernoted               (1,788)     (3,309)     (4,706)     (5,912)
    Interest and finance
     charges, net                     (6)        (24)        (17)        (48)
    Accretion on liability
     component of convertible
     debentures                     (111)       (107)       (222)       (214)
    Adjustment to gain on sale
     of spectrum and
     broadcast licence                 -           -         (61)          -
    Gain on sale of other
     property and equipment            5           -           5           2
    -------------------------------------------------------------------------
    Loss for the period from
     continuing operations        (1,900)     (3,440)     (5,001)     (6,172)
    Income for the period from
     discontinued operations           -           -          78       4,531
    -------------------------------------------------------------------------
    Loss and comprehensive
     loss for the period          (1,900)     (3,440)     (4,923)     (1,641)
    Deficit, beginning
     of period                    (8,991)    (49,690)     (5,968)    (51,489)
    -------------------------------------------------------------------------
    Deficit, end of period     $ (10,891)  $ (53,130)  $ (10,891)  $ (53,130)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Continuing operations
      Basic loss per share     $   (0.02)  $   (0.03)  $   (0.04)  $   (0.05)
      Diluted loss per share       (0.02)      (0.03)      (0.04)      (0.05)
    Discontinued operations
      Basic income per share           -           -           -        0.04
      Diluted income per share         -           -           -        0.04
    Loss per share
      Basic                        (0.02)      (0.03)      (0.04)      (0.01)
      Diluted                      (0.02)      (0.03)      (0.04)      (0.01)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number of shares outstanding
      Basic                      127,488     126,494     127,486     126,220
      Diluted                    127,488     126,494     127,486     126,220
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Look Communications Inc.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

    Three and six months ended February 28, 2010 and 2009
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                  Three months ended        Six months ended
                                     February 28              February 28
                                    2010        2009        2010        2009
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
      Loss for the period      $  (1,900)  $  (3,440)  $  (4,923)  $  (1,641)
      Less: Income for
       the period from
       discontinued operations         -           -         (78)     (4,531)
      Items not affecting cash       117       1,087         370       2,409
      Changes in non-cash
       operating assets and
       liabilities                  (407)        535     (22,699)        439
    -------------------------------------------------------------------------
    Cash used in continuing
     operations                   (2,190)     (1,818)    (27,330)     (3,324)
    Cash provided by (used in)
     discontinued operations           -         (12)         78         495
    -------------------------------------------------------------------------
    Cash used in operating
     activities                   (2,190)     (1,830)    (27,252)     (2,829)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
    Cash provided by (used in)
     financing activities         (1,946)          1      (1,946)          1
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
    Cash provided by (used in)
     continuing operations         3,033          (5)     16,951         (12)
    Cash provided by
     discontinued operations           -       1,436           -       3,393
    -------------------------------------------------------------------------
    Cash provided by
     investing activities          3,033       1,431      16,951       3,381
    -------------------------------------------------------------------------

    Increase (decrease) in cash
     and cash equivalents         (1,103)       (398)    (12,247)        553
      Cash and cash equivalents,
       beginning of period         3,110       4,516      14,254       3,565
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period             $   2,007   $   4,118   $   2,007   $   4,118
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

%SEDAR: 00013414E

SOURCE Look Communications Inc.

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

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