Glentel Inc. 3rd quarter earnings increase by 125% to $0.42 per share

TSX Stock Symbol: GLN

BURNABY, BC, Oct. 25 /CNW/ - Glentel Inc. today reported its results for the 3rd quarter ended September 30, 2007.

Sales for the 3rd quarter grew 32%, to $61,336,000 compared to $46,386,000 in the same period of 2006. Operating income before interest and taxes increased to $7,038,000 for the 3rd quarter of 2007 compared to $2,944,000 in 2006. Net income for the quarter increased 125% to $4,430,000, $0.42 per share, compared to $1,972,000, $0.19 per share, for the same quarter in 2006.

Sales for the nine months ended September 30, 2007 increased 21%, to $152,675,000 compared to $126,126,000 in the same period of 2006. Operating income before interest and taxes increased to $9,290,000 compared to $4,652,000 in 2006. Net income for the same period was $5,779,000, $0.56 per share, compared to $3,078,000, $0.30 per share, for the first nine months of 2006.

"I am extremely pleased to report such outstanding results for the 3rd quarter," said Thomas Skidmore, Glentel's president and chief executive officer. "We experienced strong retail activity throughout our three retail banners and celebrated the 10th anniversary of WirelessWave. The Business Division completed the integration of its 2006 acquisitions. We look forward to and anticipate a strong performance in the 4th quarter as well, which historically is the Company's strongest quarter of the year."

Retail Division sales of retail cellular products and services grew 40%, to $51,316,000 for the 3rd quarter compared to $36,772,000 in 2006. The aggressive marketing and new enhanced phone plans for customers, first introduced by the cellular networks in the 2nd quarter, had a positive effect on sales in the 3rd quarter. As a result, same-store cellular phones and other wireless devices sold in the Retail Division grew 22% in the 3rd quarter over the corresponding period in 2006 for stores that were open throughout both periods.

As a result of the strong sales in the quarter, operating income before interest and taxes for the division grew 106% to $8,535,000 compared to $4,143,000 in the same period the previous year.

Business Division sales of terrestrial radio systems, satellite network services, advanced mobile solutions, and service/engineering support grew 4%, to $10,020,000 for the 3rd quarter compared to $9,614,000 in 2006. While the Division experienced a modest growth in sales, in the 3rd quarter it successfully completed the integration of the acquisitions made in 2006 which resulted in a 20% improvement in operating income in the 3rd quarter of 2007 compared to last year.

During the 3rd quarter the Business Division experienced growth in sales in certain product segments of its business. Broadband opportunities have been one segment of growth which saw a number of successful implementations in the quarter. Radio system sales were also strong in the 3rd quarter including the delivery and installation of repeaters and controllers for the University of Saskatchewan in Saskatoon. The Business Division is optimistic it will be able to build on it's successes from the past quarter and will continue to see increases in sales and earnings in the future.

As a result, operating income before interest and taxes for the quarter in the division was $668,000 compared to $555,000 in 2006.

Financial highlights, in thousands of Canadian dollars (except per share data), are as follows:

    
    -------------------------------------------------------------------------
                                    Three months ended    Nine months ended
                                      September 30th        September 30th
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                                     2007       2006       2007       2006
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    Sales                           $61,336    $46,386   $152,675   $126,126
    -------------------------------------------------------------------------
    Income, before interest,
     taxes and amortization           8,565      4,158     13,628      8,072
    -------------------------------------------------------------------------
    Operating income, before
     interest and taxes               7,038      2,944      9,290      4,652
    -------------------------------------------------------------------------
    Net income                       $4,430     $1,972     $5,779     $3,078
    -------------------------------------------------------------------------
    Income per share                  $0.42      $0.19      $0.56      $0.30
    -------------------------------------------------------------------------
    

About Glentel:

Glentel is an international wireless solutions provider operating 237 corporate locations in Canada through its Retail and Business Divisions, under the trading names of Glentel Wireless, WirelessWave, Tbooth/La Cabine T, and Wireless etc.

Forward-Looking Statements:

Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third-party manufacturing, managing rapid growth, limited intellectual property protection, and other risks and uncertainties described in Glentel's public filings with securities regulatory authorities.

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HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

To request a copy of Glentel's annual report, go to www.newswire.ca, Tools for Investors, and click on reports@cnw.

Contacts

Thomas E. Skidmore
President & CEO
Tel (604) 431-2302
tskidmore@glentel.com

or Dale B. Belsher
Chief Financial Officer & Investor Relations
Tel (604) 415-6500