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180 Connect Inc. announces first quarter 2008 results.

Article Excerpt
Revenue increases to $94 million, representing a 2.9% increase from the Prior Year

DIRECTV to Purchase 180 Connect Inc. to Gain Control of a Significant Portion of the DIRECTV Installation Network

Stock Symbols: OTCBB: CNCT.OB, CNCTU.OB, CNCTW.OB

TORONTO and ENGLEWOOD, CO, May 15 /PRNewswire-FirstCall/ -- 180 Connect Inc. ("180 Connect" or the "Company") (OTCBB: CNCT.OB, CNCTU.OB, CNCTW.OB), one of North America's largest providers of installation, integration and fulfillment services to the home entertainment, communication, and home integration service industries, today released its financial results for the first quarter ended March 31, 2008.

Certain information contained in this news release constitutes forward-looking information, including anticipated growth and financial performance. See "Forward-Looking Information".

Selected Financial Highlights - First Quarter Ended March 31, 2008 For the three months ended March 31, 2008 as compared to the three months ended March 31, 2007: First Quarter 2008 Highlights - Revenue grew to $94.2 million, an increase of $2.6 million, or 2.9%, compared to revenue of $91.6 million in 2007. - EBITDA from continuing operations(2) was $0.3 million, a decrease of $3.0 million or 91.5% compared to $3.3 million in 2007. - Total cash provided by operating activities was $2.5 million, an increase of $3.7 million from the cash used by operating activities of $1.2 million in 2007. - Loss from continuing operations was $6.0 million, an improvement of $0.2 million compared to a loss from continuing operations of $6.2 million in 2007. - Net loss was $6.0 million unchanged compared to 2007. - Net loss per share for the three months ended March 31, 2008 and March 31, 2007, respectively, is as follows: - Loss from continuing operations was $0.23 per share basic and diluted compared to a loss from continuing operations of $0.42 per share basic and diluted in 2007. - Net loss was $0.23 per share basic and diluted compared to net loss of $0.41 per share basic and diluted in 2007.

Revenue in the first quarter increased to $94 million, from $92 million in 2007. This 2.9% increase reflects continued growth resulting from higher DIRECTV volume partially offset by modest declines in the Company's Cable, 180 Home and Network Services businesses. DIRECTV volume increased 2.8% from the three months ended March 31, 2007 due to the effect of the DIRECTV rate increase implemented during the second quarter of 2007, which was partially offset by a less favourable mix and increase in chargebacks. The net impact of the volume, rate, mix effect, and chargebacks was an increase in revenue of $3.6 million for the three months ended March 31, 2008.

Cable revenues in the first quarter decreased by 6% from the three months ended March 31, 2007. A revenue increase of 28% in Rogers Communications Inc. was offset by decreases at certain other cable operations. Revenue in 180 Connect's Network Services business declined by 17% from the...

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