TORONTO and MONTREAL – Revenue for the three and nine months at fixed wireless company Look Communications was $7.1 million and $ 23.3 million respectively, compared with the corresponding periods in 2005 of $9.2 million and $28.9 million.
Gross margin was $3.7 million and $12.8 million for the three and nine month periods ended May 31, 2006 respectively, compared with gross margins of $4.6 million and $14.2 million in the corresponding periods in 2005. "The decline in revenue and gross margin was the result of a lower subscriber base in the current periods compared to the corresponding periods in 2005, however, the gross margin on service revenues improved to 54.6% from 51% for the quarter ended May 31, 2006 compared to 2005 and to 56.4% from 50% for the nine months ended May 31, 2006 compared to 2005 as a result of improved product mix sold and continuing reductions to Look’s telecommunications costs and programming fees," says the press release
EBITDA for the three months ended May 31, 2006 was negative $290,000 compared to a negative EBITDA of $153,000 for the previous year’s quarter ended May 31, 2005. For the nine months ended May 31, 2006, EBITDA was $262,000 compared with a negative EBITDA in 2005 of $1.4 million, a $1.6 million improvement. The positive improvement in fiscal 2006 is primarily attributable to lower operating expenses, adds the company.
The net loss for the quarter ended May 31, 2006 was $1.8 million, compared to a net loss of $2.2 million for Q3 ’05. Net loss for the nine months ended May 31, 2006 was $4.6 million, compared $7.7 million last year
"The company continues to service its fixed subscriber base while developing its M3 network," said company CEO Gerry McGoey, in a release. "Our existing and future subscriber base will truly benefit from the mobile technology and services being developed and just starting to be provided around the globe. Mobile Multi Media (M3) developments around the world and in particular, Mobile TV, continue to gain momentum. During the quarter, Look launched its new M3 demonstration network for mobile TV in Milton Ontario. With the recent wireless financing in the U.S. and the upcoming U.S. Government’s FCC auctions in August for spectrum, the wireless entertainment information and wireless service companies continue development of Mobile Multi Media. The company continues to focus on its new strategic direction of M3 by continuing discussions with financial, technological and content partners for our M3 network."
