QuStream reports record revenues

QuStream Corporation reported a record $7.8 million (Canadian) revenues for the third quarter of fiscal 2007, compared to $6.4 million in the same period in fiscal 2006, an increase of 22%. Revenues for the nine months ended September 30, 2007 were $19.1 million, up 26% from the $15.2 million during the same period last year.

“I am very pleased with the continued strength in the Commercial segment as revenue from this market increased 48% in the third quarter of 2007 compared to the same period last year. I am also pleased with the level of bookings that were generated this quarter, particularly the continued strength from the US Government segment,” said Frederick L. Godard, Chairman, President and Chief Executive Officer of QuStream. “We continue to make significant investments in Research & Development and in Selling & Marketing as we execute on our growth plans.”

Excluding the exchange rate effect, revenues for the third quarter of fiscal 2007 were USD $7.5 million, up 32% from the USD $5.7 million in the same period last year. Revenues for the nine months ended September 30, 2007 were USD $17.6 million, up 30% from the USD $13.5 million in the same period last year.

Gross margin for the third quarter of fiscal 2007 was 55% compared to 56% in the same period last year. Gross margin for the nine months ended September 30, 2007 was 56% compared to 55% for the same period last year.

Net earnings for the third quarter of fiscal 2007 were $0.4 million or $0.02 per share compared with net earnings of $0.3 million or $0.02 per share for the same period last year. Net earnings for the nine months ended September 30, 2007 were $0.1 million or $0.01 per share compared to a net loss of $( 0.9) million or $(0.04) per share for the same period last year.

In the third quarter total bookings were US$7.7 million, the second highest in the Company’s history.

Backlog at the end of the third quarter of fiscal 2007 was US$3.8 million.