ACCESS INTEGRATED TECHNOLOGIES, INC. ANNOUNCES FISCAL 2008 THIRD QUARTER RESULTS

http://investor.accessitx.com/releasedetail.cfm?ReleaseID=292801

Source: AccessIT

- Continued Revenue Growth and Increase in Adjusted EBITDA Margin -

MORRISTOWN, N.J., Feb 08, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (Nasdaq: AIXD) reported a 51% increase in revenues, to a record $21.5 million for the fiscal 2008 third quarter ended December 31, 2007, versus the year-ago period. In the quarter, the Company posted an Adjusted EBITDA(1) (defined below) of $8.4 million or $0.33 per share, and a net loss of $8.4 million or $0.32 per share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, debt refinancing and stock-based compensation aggregating $11.1 million or $0.43 per share.

Third Fiscal Quarter Highlights

-- Revenues for the third quarter increased by 51%, to $21.5 million from

$14.2 million, and for the nine months ended December 31st by 99% to

$59.1 million from $29.8 million in the comparable year ago periods

respectively. These increases were driven largely by gains in the

media services segment, including Virtual Print Fees ("VPF").

-- The increases in Adjusted EBITDA(1), year-to-date to $21.4 million from

$2.6 million and in the third quarter to $8.4 million from $2.1 million

in the comparable year ago periods respectively, were primarily due to

the increased revenues, partially offset by increased operating and

SG&A expenses resulting from the acquisitions of AccessIT Advertising

and Creative Services ("ACS") in July 2006 and The Bigger Picture in

January 2007.

-- Loss from Operations in the December 2007 quarter decreased to $1.0

million from a loss of $3.2 million in the year ago period. The

decreased loss was due primarily to higher revenues partially offset by

increased depreciation, and additional amortization of intangible

assets resulting from the acquisitions of ACS and The Bigger Picture.

Non-cash charges included in loss from operations for the year

aggregated $21.8 million.

-- Gross Profit Margin (revenue less direct operating expenses) continues

to be over 60% in this each of the three quarters for fiscal 2008.

-- Adjusted EBITDA(1) margins improved from 15% in the prior year's third

quarter, and from 35% in our recently completed second quarter, to 39%

in this quarter.

-- Growth of the Company's satellite network to 240 sites in 40 states

helped to drive 15 percent growth in third quarter delivery revenues

versus the previous quarter.

Bud Mayo, Chief Executive Officer of AccessIT, stated, "The third quarter marks the completion of our Phase One deployment, a significant achievement unparalleled by any other company in the world. The platform that we have created with our first set of screens -- a total of more than 3,700 -- also provides our other divisions with revenue opportunities. Significant announcements like The Bigger Picture's signing of a multi-year agreement for content from the San Francisco Opera and the Software division's agreement with Doremi Labs Inc. to provide our Theatre Command Center^™ software and Library Management Server^™ to customers internationally are both indications of our progress in other aspects of our business. While we continue to progress toward long-term agreements with the major movie studios for our planned Phase Two digital cinema deployment, we remain focused on growing the businesses we expect to be the strength of this company long after the country's movie screens have been converted to digital cinema."