UBS reports third quarter 2010 results

TORONTO, July 28 /CNW/ - Unique Broadband Systems, Inc. ("UBS") (TSX Venture: UBS) today reported its operating and financial results for the third quarter of fiscal 2010, ended May 31, 2010.

Financial and operating highlights for the quarter included the following:

    
    -  During May 2010, debenture-holders of Look Communications Inc.
       ("Look") converted $916,000 of debentures into 6,106,661 Multiple
       Voting Shares and 6,106,661 Subordinate Voting Shares of Look and Look
       redeemed the remaining $3.2 million of debentures, including
       $3 million held by UBS, for cash. As a result, effective May 25, 2010,
       UBS now holds a 39.2 per cent economic interest and a 37.6 per cent
       voting interest in Look's issued and outstanding shares;

    -  As UBS no longer has a controlling interest in Look, UBS will, with
       effect from May 25, 2010, no longer be consolidating the results of
       Look but will be accounting for its investment in Look using the
       equity method;

    -  Cash and cash equivalents of UBS at May 31, 2010 totalled
       $5.5 million, which represents an increase of $2.4 million from
       August 31, 2009. This increase is due mainly to the redemption of
       Look's debenture of $3 million;

    -  Net loss for the quarter was $1.8 million, or a basic loss per share
       of $0.02 compared with net earnings of $39.1 million or basic income
       per share of $0.38 a year ago;

    -  UBS has three full-time equivalent employees.
    

Look continues to pursue opportunities with interested parties to maximize the value of its remaining non-cash assets consisting of approximately $360 million of tax attributes and the Milton facility and related infrastructure.

About Unique Broadband Systems, Inc.

------------------------------------

UBS is a publicly listed Canadian company that has a 39.2 per cent fully diluted economic interest in Look Communications Inc. and other assets. The Company's website may be found at www.uniquebroadband.com.

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.

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 July 20, 2010 announcing its results for the third quarter of fiscal 2010.

    
    Unique Broadband Systems, Inc.
    INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
    (in thousands of dollars)

    as at
    -------------------------------------------------------------------------
                                                          May 31,  August 31,
                                                            2010        2009
    -------------------------------------------------------------------------

    ASSETS
    Total current assets                                $  5,683    $ 68,091
    Restricted cash                                           50         430
    Property and equipment                                     -       1,995
    Investment in Look                                    13,107           -
    -------------------------------------------------------------------------
                                                        $ 18,840    $ 70,516
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Total current liabilities                           $  8,914    $ 32,805
    Liability component of convertible debentures              -         917
    -------------------------------------------------------------------------
    Total liabilities                                      8,914      33,722
    -------------------------------------------------------------------------

    Non-controlling interest                                   -      21,940

    Shareholders' equity
      Share capital                                       58,139      58,139
      Contributed surplus                                  3,237       3,459
      Deficit                                            (51,450)    (46,744)
    -------------------------------------------------------------------------
    Total shareholders' equity                             9,926      14,854
    -------------------------------------------------------------------------
                                                        $ 18,840    $ 70,516
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
    DEFICIT
    (in thousands, except per share amounts)

    Three and nine months ended May 31, 2010 and 2009
    -------------------------------------------------------------------------
                                  Three months ended       Nine months ended
                                         May 31,                 May 31,
                                    2010        2009        2010        2009
                                           (Restated)              (Restated)
    -------------------------------------------------------------------------
    Service and sales revenue   $     39    $  3,096    $    473    $ 10,011
    Carrier charges and cost
     of sales                          -       2,470         425       6,224
    -------------------------------------------------------------------------
    Gross margin from
     continuing operations            39         626          48       3,787
    Operating expenses             2,093       7,366       7,252      17,116
    -------------------------------------------------------------------------
    Loss from continuing
     operations before the
     under noted                  (2,054)     (6,740)     (7,204)    (13,329)

    Accretion on liability
     component of convertible
     debentures                      (90)        (29)       (232)        (87)
    Net interest expense              47         (50)         32         (87)
    Gain on sale of other
     property and equipment            5           -          10           2
    Gain on settlement of
     Inukshuk litigation               -       4,000           -       4,000
    Gain (loss) on sale of
     spectrum and broadcast
     licence                           -      78,243         (61)     78,243
    Loss on settlement of Bell
     litigation                        -      (5,817)          -      (5,817)
    Equity interest in Look's
     losses                          (39)          -         (39)          -
    Dilution loss due to change
     in shareholding in Look        (677)          -        (677)          -
    -------------------------------------------------------------------------
    Income (loss) for the period
     from continuing operations
     before income taxes          (2,808)     69,607      (8,171)     62,925
    Income taxes                       -           -           -           -
    -------------------------------------------------------------------------
    Income (loss) for the period
     from continuing operations
     before non-controlling
     interest                     (2,808)     69,607      (8,171)     62,925
    Non-controlling interest         975     (30,466)      3,425     (30,401)
    -------------------------------------------------------------------------
    Income (loss) for the period
     from continuing operations   (1,833)     39,141      (4,746)     32,524
    Income for the period from
     discontinued operations           -           -          40       4,531
    -------------------------------------------------------------------------
    Income (loss) and
     comprehensive income (loss)
     for the period               (1,833)     39,141      (4,706)     37,055
    Deficit, beginning of
     period                      (49,617)    (69,566)    (46,744)    (67,480)
    -------------------------------------------------------------------------
    Deficit, end of period      $(51,450)   $(30,425)   $(51,450)   $(30,425)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Continuing operations:
      Basic income (loss)
       per share                $  (0.02)   $   0.38    $  (0.05)   $   0.32
      Diluted income (loss)
       per share                   (0.02)       0.36       (0.05)       0.31

    Discontinued operations:
      Basic income per share        0.00        0.00        0.00        0.04
      Diluted income per share      0.00        0.00        0.00        0.04

    Income (loss) per share:
      Basic                     $  (0.02)   $   0.38    $  (0.05)   $   0.36
      Diluted                   $  (0.02)   $   0.36    $  (0.05)   $   0.35

    Weighted average of number
     of shares outstanding:
      Basic                      102,748     102,748     102,748     102,748
      Diluted                    102,748     108,172     102,748     104,556



    Unique Broadband Systems, Inc.
    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
    (in thousands of dollars)

    Three and nine months ended May 31, 2010 and 2009
    -------------------------------------------------------------------------
                                  Three months ended       Nine months ended
                                         May 31,                 May 31,
                                    2010        2009        2010        2009
                                           (Restated)              (Restated)
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
      Income (loss) for the
       period                   $ (1,833)   $ 39,141    $ (4,706)   $ 37,055
      Less: Income from
       discontinued operations
       for the period                  -           -         (40)     (4,531)
      Items not affecting cash      (141)    (38,062)     (2,248)    (35,745)
      Change in non-cash
       operating assets and
       liabilities                  (170)      3,116     (23,170)      3,245
      -----------------------------------------------------------------------
      -----------------------------------------------------------------------
      Cash provided by (used
       in) continuing operations  (2,144)      4,195     (30,164)         24
      Cash provided by
       discontinued operations         -          12          78         507
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash provided by (used in)
     operating activities         (2,144)      4,207     (30,086)        531
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    -------------------------------------------------------------------------
    Cash used in financing
     activities                     (274)          -      (2,115)          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
      Cash provided by
       continuing operations       3,351      12,273      20,308      12,261
      Cash provided by (used
       in) discontinued
       operations                      -         (12)          -       3,381
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash provided by investing
     activities                    3,351      12,261      20,308      15,642
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net cash provided by
     (used in) continuing
     operations                      933      16,468     (11,971)     12,285
    Net cash provided by
     discontinued operations           -           -          78       3,888
    -------------------------------------------------------------------------
    Increase (decrease) in cash
     and cash equivalents            933      16,468     (11,893)     16,173
    Cash and cash equivalents,
     beginning of period           4,563       4,873      17,389       5,168
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period              $  5,496    $ 21,341    $  5,496    $ 21,341
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

%SEDAR: 00010550E

SOURCE Unique Broadband Systems, Inc.

For further information: For further information: Robert Ulicki, Chairman of the Board, irinfo@uniquebroadband.com, 416-642-5703

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