PowerComm Inc. First Quarter Revenues Increase 46%



    EDMONTON, Aug. 14 /CNW/ - PowerComm Inc. (PCG:TSX) ("PowerComm" or the
"Company") today released its first quarter financial statements and MD&A.
Revenue for the quarter was $15,473,000 compared with $10,565,000 for the same
period in the previous year. The company showed a loss of $608,000 including a
non-recurring charge of $243,000, compared with a loss of $569,000 for the
comparable period in the previous year.
    All segments of the corporation showed increases in revenue and the two
areas that had been lagging, manufacturing and construction both showed
significant improvement. Increases in inventory are a direct result of the
increased activity and the ramping up of several projects that are just
commencing.
    "We are seeing the result of continued efforts to establish a sound base
for continued growth," said Wayne Rutherford, PowerComm's President and CEO,
"and backlog of approximately $12M continues to grow to record levels as we
are being successful in securing new business." he concluded.
    "The move to the new facility will show some short term additional
expenses but will allow the company to dramatically increase its valve
refurbishment volumes," said Joe Huising, CFO, "the ability to have all of us
under one roof will now enable the company to operate more efficiently,
producing positive results in the third and fourth quarters of this fiscal
year," he added.
    Additionally the corporation has determined that the acquisition of
Unified Systems Group Inc. does not meet its growth strategy at this time and
has made a corporate decision not to proceed with the previously announced
transaction.

    Reader Advisory

    The news release contains certain forward-looking statements, including
management's assessment of future plans and operations and capital
expenditures and the timing thereof, that involve substantial known and
unknown risks and uncertainties, certain of which are beyond PowerComm Inc.'s
control. Such risks and uncertainties include, without limitation, risks
associated with the Corporation's ability to market successfully to current
and new customers; supply and demand for PowerComm Inc.'s services and
products and industry activity levels; capital expenditure programs;
projections of commodity prices and costs; the Corporation's ability to obtain
material and equipment from suppliers; operating risk liability; expansion of
services and products by internal growth or acquisition; the Corporation's
ability to obtain additional financing on satisfactory terms; the impact of
general economic and industry conditions; changes in laws and regulations
(including the adoption of new environmental laws and regulations) and changes
in how they are interpreted and enforced; competitive conditions; the lack of
availability of qualified personnel or management; fluctuations in foreign
exchange or interest rates, stock market volatility; and obtaining required
approvals of regulatory authorities. PowerComm Inc.'s actual results,
performance or achievements could differ materially from those expressed in,
or implied by, these forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what benefits, including the amount of proceeds, that PowerComm Inc. will
derive therefrom. Readers are cautioned that the foregoing list of factors is
not exhaustive. All subsequent forward-looking statements, whether written or
oral, attributable to PowerComm Inc. or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements.
Furthermore, the forward-looking statements contained in this news release are
made as of the date of this news release and PowerComm Inc. does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable securities laws.




For further information:

For further information: Wayne R. Rutherford, President and Chief
Executive Officer or J.D. Snowdon, Executive Vice President Corporate Services
at (780) 465-7038 or at info@powercomm.ca

Organization Profile

POWERCOMM INC.

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