UBS Reports Second Quarter 2009 Results



    
    Comments on Industry Canada Consultation on Transition to Broadband Radio
    Service (BRS) in the Band 2500-2690 MHz
    

    TORONTO, April 29 /CNW/ - Unique Broadband Systems, Inc. (TSX Venture:
UBS) today reported its financial and operating results for the second quarter
of fiscal 2009.

    
    Highlights for the three months ended February 28, 2009 included the
    following:

    -   Service and sales revenue for the quarter ended February 28, 2009 was
        $3.3 million compared with $4.4 million for the quarter ended
        February 29, 2008;

    -   Operating expenses increased by $0.4 million or 8% to $5.2 million
        for the quarter ended February 28, 2009 (quarter ended February 29,
        2008 - $4.8 million);

    -   Loss from continuing operations for the quarter ended February 28,
        2009 was $3.6 million compared to $1.6 million a year ago;

    -   Loss and comprehensive loss for the quarter ended February 28, 2009
        was $3.6 million or $0.04 per share compared with the loss and
        comprehensive loss of $1.3 million or $0.01 per share for the quarter
        ended February 29, 2008; and

    -   Industry Canada released the long-anticipated Notice No. DGRB-005-09
        - Consultation on Transition to Broadband Radio Service (BRS) in the
        Band 2500-2690 MHz (see detail below).
    

    Subsequent to the second quarter ended February 28, 2009, and during
Look's Plan of Arrangement approved by the Ontario Superior Court of Justice
on January 21, 2009, on March 6, 2009, Industry Canada (the "Department")
released the long-anticipated Notice No. DGRB-005-09 - Consultation on
Transition to Broadband Radio Service (BRS) in the Band 2500-2690 MHz (the
"Spectrum Consultation"). The Spectrum Consultation is seeking, amongst other
things, consultation on the criteria to be used in the issuance of BRS
licences to operators of qualified Multipoint Communication System (MCS)
licences and Multipoint Distribution Service (MDS) authorizations. The
Spectrum Consultation also introduced the Stakeholder Proposal Development
(SPD) process which involves the facilitation of discussions with MCS and MDS
incumbents with the goal of developing proposals to align the spectrum that
would be retained by incumbents following the transition to BRS with a new
internationally compatible band plan applicable to BRS.

    
    In the Spectrum Consultation, the Department has stated the following:

        "At the World Radiocommunication Conference in 2000 (WRC-2000), the
        band 2500 to 2690 MHz was identified for IMT-2000 radio services
        (also known as third generation mobile or 3G services). The
        identification of this band by the (International Telecommunication
        Union) (the "ITU") has created significant interest, as it is the
        only band identified by the ITU for next generation mobile services
        on a global basis. High-capacity mobile services may be offered in
        this band because of good radio propagation characteristics, the
        prospect of relatively low-cost equipment and the large spectrum
        blocks that can accommodate the latest broadband technologies. These
        factors make this spectrum unique and valuable."

    In addition, the Department is seeking comments on, amongst other things:

    1.  Whether the Department adopt a firm transition date of March 31, 2011
        to BRS rather than renew MCS and MDS licences;
    2.  The options that should be applied to the Manitoba school boards and
        the commercial MCS licensee;
    3.  Which component(s) (i.e. CRTC Decision, Industry Canada broadcasting
        certificate, and CRTC licence) should be required for licensed MDS in
        order to qualify for conversion to BRS in a given area;
    4.  Whether CRTC licence-exempt systems that serve small, rural, and
        remote communities having small populations should be treated
        differently from the CRTC-licensed systems;
    5.  Whether Tier 3 or Tier 4 licence areas are the most appropriate for
        the conversion of site-specific MCS licences to BRS spectrum
        licences, where applicable, and for the conversion of MDS
        authorizations, including Industry Canada spectrum licences issued in
        the 2596-2690 MHz band; and
    6.  Licence conditions proposed for voluntarily converted BRS licences.

    Further to the above, the Department has confirmed, amongst other things,
the following in the Spectrum Consultation:

    1.  Eligible MCS and MDS incumbents will be issued BRS licences for
        approximately two thirds of their current spectrum holdings;
    2.  The bands 2535-2568 MHz and 2657-2690 MHz, and all other available
        spectrum, would be made available through an auction;
    3.  Effective immediately, the Department has placed a moratorium on new
        applications for broadcasting certificates in the band 2500-2690 MHz;
    4.  The BRS licences issued through a conversion process will expire on
        March 31, 2021; and
    5.  A licensee may apply in writing to transfer its licence in whole or
        in part (divisibility), in both the bandwidth and geographic
        dimensions.
    

    The Department has requested that all parties submit their comments to
the Spectrum Consultation by June 15, 2009, with interested parties then
having until July 17, 2009 to submit a reply to comments posted by other
parties.
    The Department has recognized that in order to give effect to the mobile
allocation and 'flexible-use' licences (mobile, fixed and broadcasting) in
this band, that several additional issues need to be addressed in future
consultations. These consultations will involve three major elements:

    
    1.  The policy framework;
    2.  The licensing framework; and
    3.  The band plan and relevant technical issues.
    

    Look intends to participate fully in each of the SPD process, the current
consultation, and all future consultations.
    The Company is very pleased that the Department has outlined a position
with respect to the 2500-2690 MHz band plan. Look's 92 MHz of MDS spectrum,
equivalent to 61 MHz of BRS spectrum, represents BRS coverage of approximately
1.2 billion MHz/Pops across Ontario and Quebec and is the largest contiguous
block of mobile spectrum owned by any individual operator in Canada. The
identification of this band by the ITU as the only band designated for next
generation mobile services on a global basis reaffirms Look's belief that its
spectrum is a unique and valuable asset.

    
    About Unique Broadband Systems, Inc.
    ------------------------------------
    
    UBS is a publicly listed Canadian company that has a 51.8% fully diluted
economic interest in Look Communications Inc. and other assets. With its
licensed spectrum through its subsidiary, Look, UBS is a Canadian digital
television broadcaster and broadband wireless service provider. The Company's
website may be found at www.uniquebroadband.com.

    
    About Look Communications Inc.
    ------------------------------
    
    Look's mission has been to be an M3 - Mobile Multi Media -
communications, 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, digital television
distribution, and superior customer service to both the business and
residential markets. The Corporation provides its digital television
distribution and wireless Internet services using its approximately 100 MHz of
Multipoint Distribution System spectrum in the 2.5 to 2.7 GHz frequency band
covering approximately 18 million people (1.8 billion MHz/Pops) in the
provinces of Ontario and Québec. 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.

    
    Forward looking statements
    --------------------------
    
    The corporate information contained in this release includes
forward-looking statements regarding future events and the future performance
of the Company 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 the Company 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 the Company that actual results
achieved will be the same in whole or in part as those forecasts.

    
    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.

    This press release should be read in conjunction with Look's press
    release of April 29, 2009 announcing its second quarter results for
    fiscal 2009.


    UNIQUE BROADBAND SYSTEMS, INC.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS

    (in thousands of Canadian dollars)

    As at
    -------------------------------------------------------------------------
                                                    February 28    August 31
                                                           2009         2008
    -------------------------------------------------------------------------

    ASSETS
    Total current assets                              $   5,529    $   6,057
    Restricted cash                                         511          490
    Property and equipment                                5,486        7,503
    Deferred charges                                         45           63
    -------------------------------------------------------------------------
                                                      $  11,571    $  14,113
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' DEFICIENCY
    Total current liabilities                         $  18,754    $  19,486
    Liability component of convertible debentures           913          903
    -------------------------------------------------------------------------
    Total liabilities                                    19,667       20,389
    -------------------------------------------------------------------------

    Non controlling interest                                414          422

    Shareholders' deficiency
    Share capital                                        58,139       58,139
    Contributed surplus                                   2,917        2,643
    Deficit                                             (69,566)     (67,480)
    -------------------------------------------------------------------------
    Total shareholders' deficiency                       (8,510)      (6,698)
    -------------------------------------------------------------------------
                                                      $  11,571    $  14,113
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    UNIQUE BROADBAND SYSTEMS, INC.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
    DEFICIT

    (in thousands of Canadian dollars, except per share amounts)

    Three and six months ended February 28, 2009 and February 29, 2008
    -------------------------------------------------------------------------
                                Three months ended          Six months ended
                          February 28  February 29  February 28  February 29
                                 2009         2008         2009         2008
    -------------------------------------------------------------------------
    Service and sales
     revenue                $   3,327    $   4,357    $   6,915    $   8,884
    Carrier charges and
     cost of sales              1,814        2,349        3,754        4,715
    -------------------------------------------------------------------------

    Gross margin                1,513        2,008        3,161        4,169
    Operating expenses          5,163        4,782        9,750        9,703
    -------------------------------------------------------------------------
                               (3,650)      (2,774)      (6,589)      (5,534)
    Accretion on liability
     component of
     convertible debentures       (28)         (39)         (58)         (78)
    Net interest income
     (expense)                    (22)          26          (37)          74
    Gain on disposal of
     capital assets                 -            8            2            8
    -------------------------------------------------------------------------

    Loss from continuing
     operations before
     non-controlling interest  (3,700)      (2,779)      (6,682)      (5,530)
    Non-controlling interest
     in continuing operations      65        1,212           65        2,379
    -------------------------------------------------------------------------
    Loss from continuing
     operations                (3,635)      (1,567)      (6,617)      (3,151)
    Income from discontinued
     operations before
     non-controlling interest       -          575        4,531        1,142
    Non-controlling interest
     in discontinued
     operations                     -         (282)           -         (560)
    -------------------------------------------------------------------------
    Income from discontinued
     operations                     -          293        4,531          582
    Loss and comprehensive
     loss for the period       (3,635)      (1,274)      (2,086)      (2,569)
    Deficit, beginning
     of period                (65,931)     (61,179)     (67,480)     (59,884)
    -------------------------------------------------------------------------
    Deficit, end of period  $ (69,566)   $ (62,453)   $ (69,566)   $ (62,453)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and diluted loss
     per share - continuing
     operations:            $   (0.04)   $   (0.02)   $   (0.06)   $   (0.03)
    Basic and diluted loss
     per share -
     discontinued
     operations:            $    0.00    $    0.00         0.04         0.01
    Basic and diluted loss
     per share - total      $   (0.04)   $   (0.02)       (0.02)       (0.02)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    UNIQUE BROADBAND SYSTEMS, INC.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

    (in thousands of Canadian dollars)

    Three and six months ended February 28, 2009 and February 29, 2008
    -------------------------------------------------------------------------
                                Three months ended          Six months ended
                          February 28  February 29  February 28  February 29
                                 2009         2008         2009         2008
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
      Loss from continuing
       operations           $  (3,635)   $  (1,567)   $  (6,617)   $  (3,151)
      Items not affecting
       cash                     1,007          231        2,317          638
      Changes in non-cash
       working capital            504         (349)         100         (189)
    -------------------------------------------------------------------------
      Cash flows used in
       continuing operations   (2,124)      (1,685)      (4,200)      (2,702)
      Cash flows from (used
       in) discontinued
       operations                 (12)         569          495         (588)
    -------------------------------------------------------------------------
    Cash flows used in
     operating activities      (2,136)      (1,116)      (3,705)      (3,290)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Cash flows from (used in)
     financing activities           1           (6)           1          (14)
    -------------------------------------------------------------------------
    Cash flows from
     investing activities
      Cash from (used in)
       continuing operations       15          (25)          16          (25)
      Cash from (used in)
       discontinued operations  1,436            -        3,393            -
    -------------------------------------------------------------------------
    Cash flows from (used in)
     financing activities       1,451          (25)       3,409          (25)
    -------------------------------------------------------------------------
    Decrease in cash and
     cash equivalents            (684)      (1,147)        (295)      (3,329)
    Deficit, beginning
     of period                  5,557        7,468        5,168        9,650
    -------------------------------------------------------------------------
    Cash and cash
     equivalents, end
     of period              $   4,873    $   6,321    $   4,873    $   6,321
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00010550E




For further information:

For further information: Peter Block, E-mail:
irinfo@uniquebroadband.com, (647) 259-3284

Organization Profile

Unique Broadband Systems, 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