Access Integrated Technologies, Inc. Announces Fiscal 2008 First Quarter Results

Access Integrated Technologies, Inc. Announces Fiscal 2008 First Quarter Results

- Revenue Growth and Adjusted EBITDA Margin Increase Continues, Driven by New and Existing Product and Service Offerings -

MORRISTOWN, N.J., Aug. 9 /PRNewswire-FirstCall/ -- Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (NASDAQ:AIXD) reported a 225% increase in revenues, to a record $18,146,000 for the first quarter of fiscal 2008 ended June 30, 2007, versus the year-ago period. In the quarter, the Company posted an Adjusted EBITDA(1) (defined below) of $6,102,000, and a net loss of $6,843,000 or $0.28 per basic and diluted share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets and software development, non-cash interest and stock based compensation aggregating $8,497,000 or $0.34 per basic and diluted share.

First Fiscal Quarter Highlights
-- Revenues for the first quarter increased by 225%, to $18,146,000 from
$5,576,000 in the comparable year ago period driven largely by VPF
revenues, delivery fees, software license fees for our Theatre Command
Centre(TM) software and contributions from our acquisitions of
UniqueScreen Media and The Bigger Picture.
-- The increase in Adjusted EBITDA(1) was primarily due to the increased
revenues as described above, partially offset by increased operating
and SG&A expenses resulting from the acquisitions of USM and The Bigger
Picture.
-- Loss From Operations in the June 2007 quarter decreased to $1,309,000,
from a loss of $2,417,000 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 UniqueScreen Media and The Bigger Picture.
Non-cash charges included in loss from operations for the year
aggregated $7,411,000.
-- Gross Margin (revenue less direct operating expenses) increased from
60% in our recently completed fourth quarter to 66% in this first
quarter.
-- Adjusted EBITDA(1) margins improved from negative 4% in the prior
year's first quarter, and from 19% in our recently completed fourth
quarter, to 34% in this quarter.
-- As of June 30, 2007, the Company had installed 2,692 digital cinema
systems and 2,851 as of July 31, 2007 and intends to complete 4,000
digital cinema systems installations by October 31, 2007.

Bud Mayo, Chief Executive Officer of AccessIT, stated, "the first quarter outcome shows our increased focus on internal growth and bottom-line improvements. The continued success of our digital cinema deployment is helping to feed the growth of our four other divisions. We anticipate that increases in revenues and Adjusted EBITDA margins along with decreases in Loss from operations will continue throughout this Fiscal year."

(1) Adjusted EBITDA is defined by the Company to be earnings before
interest, taxes, depreciation and amortization, other income
(expense), net, stock-based compensation and non-recurring items.
Adjusted EBITDA is presented because management believes it provides
additional information with respect to the performance of its
fundamental business activities. A reconciliation of Adjusted EBITDA
to Generally Accepted Accounting Principles ("GAAP") net income is
included in the table attached to this release. Adjusted EBITDA is a
measure of cash flow typically used by many investors, but is not a
measure of earnings as defined under GAAP, and may be defined
differently by others.

CONFERENCE CALL NOTIFICATION

AccessIT will host a conference call to discuss its financial results at 10:30 a.m. EDT on Thursday, August 9, 2007. The conference can be accessed by dialing 913.981.5550, at least five minutes before the start of the call. No passcode is required. The conference call will also be webcast simultaneously and will be accessible via the web on AccessIT's Web site, www.accessitx.com. A replay of the call will be available after 1:00 p.m. eastern at 719.457.0820 or 888.203.1112, passcode 8182348. The replay will be accessible through Thursday, August 16th.

Access Integrated Technologies, Inc. (AccessIT) provides theater operators the first and only studio-backed digital cinema system delivering nearly three million digital screenings of Hollywood feature films to date. The company's fully networked digital cinema system provides feature films and alternative content via satellite to expand box office sales and develop new ways to attract incremental revenues. Through its alternative content division, The Bigger Picture, AccessIT offers channels of programming including Kidtoon, Faith Based, Music and Anime. The ongoing 4,000-screen deployment is the largest of its kind in the world. Access Integrated Technologies(R) and AccessIT(TM) are trademarks of Access Integrated Technologies, Inc. For more information on AccessIT, visit www.accessitx.com. [AIXD-E]

Safe Harbor Statement

Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of AccessIT officials during presentations about AccessIT, along with AccessIT 's filings with the Securities and Exchange Commission, including AccessIT's registration statements, quarterly reports on Form 10-QSB and annual report on Form 10-KSB, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects", "anticipates", "intends", "plans", "could", "might", "believes", "seeks", "estimates" or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by AccessIT's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about AccessIT, its technology, economic and market factors and the industries in which AccessIT does business, among other things. These statements are not guarantees of future performance and AccessIT undertakes no specific obligation or intention to update these statements after the date of this release.

Contact:
Suzanne Moore Trent Freeman
AccessIT Casey Sayre & Williams
973.290.0080 (310) 396-2400
smoore@accessitx.com

ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)

Three Months Ended
June 30,
2006 2007
(Restated)

Revenues $5,576 $18,146

Costs and expenses:
Direct operating 3,422 6,206
Selling, general and administrative 2,486 5,558
Provision for doubtful accounts 19 186
Research and development 23 223
Stock-based compensation - 87
Depreciation of property and equipment 1,851 6,125
Amortization of intangible assets 192 1,070
Total operating expenses 7,993 19,455

Loss from operations (2,417) (1,309)

Interest income 309 321
Interest expense (303) (4,658)
Non-cash interest expense (23) (1,086)
Other income (expense), net (168) (111)

Net loss $(2,602) $(6,843)

Net loss per common share - Basic and diluted $(0.11) $(0.28)
Weighted average number of common shares
outstanding:
Basic and diluted 22,960,108 24,758,441

Certain reclassifications of prior period data have been made to conform to

the current presentation.

Access Integrated Technologies, Inc.
Adjusted EBITDA (as defined)
Reconciliation to GAAP Net Income
(In thousands)
(Unaudited)

Three Months Ended
June 30,
2006 2007

Net loss $(2,602) $(6,843)
Add Back:
Amortization of software development 156 129
Depreciation of property and equipment 1,851 6,125
Amortization of intangible assets 192 1,070
Interest income (309) (321)
Interest expense 303 4,658
Non-cash interest expense 23 1,086
Other (income) expense, net 168 111
Stock-based compensation - 87
Adjusted EBITDA (as defined) $(218) $6,102

ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share data)
(Unaudited)

March 31, June 30,
2007 2007
ASSETS
Current assets
Cash and cash equivalents $29,376 $28,049
Investment securities, available-for-sale - 1,500
Accounts receivable, net 18,504 20,299
Unbilled revenue, current portion 2,324 2,054
Prepaid and other current assets 1,988 2,097
Notes receivable, current portion 101 213
Total current assets 52,293 54,212

Deposits on property and equipment 8,513 5,000
Property and equipment, net 197,452 222,986
Intangible assets, net 19,432 18,324
Capitalized software costs, net 2,840 2,994
Goodwill 13,249 13,761
Accounts receivable, net of current portion 248 248
Deferred costs 4,627 4,510
Notes receivable, net of current portion 1,227 1,108
Unbilled revenue, net of current portion 1,221 1,278
Security deposits 445 428
Restricted cash 180 180
Total assets $301,727 $325,029

Liabilities and stockholders' equity

Current liabilities
Accounts payable and accrued expenses $28,931 $22,566
Current portion of notes payable 2,480 24,325
Current portion of customer security deposits 129 340
Current portion of capital leases 75 78
Current portion of deferred revenue 8,871 8,198
Total current liabilities 40,486 55,507

Notes payable, net of current portion 164,196 177,767
Customer security deposits, net of current
portion 54 53
Deferred revenue, net of current portion 283 177
Capital leases, net of current portion 5,903 5,882
Total liabilities 210,922 239,386

Commitments and contingencies

Stockholders' equity:
Class A common stock, $0.001 par value per
share; 40,000,000 shares authorized;
23,988,607 and 24,207,564 shares issued and
23,937,167 and 24,156,124 shares outstanding
at March 31, 2007 and June 30, 2007,
respectively 24 24
Class B common stock, $0.001 par value per
share; 15,000,000 shares authorized; 763,811
shares issued and outstanding, at March 31,
2007 and June 30, 2007, respectively 1 1
Additional paid-in capital 155,957 157,638
Treasury Stock, at cost; 51,440 Class
A shares (172) (172)
Accumulated deficit (65,005) (71,848)
Total stockholders' equity 90,805 85,643

Total liabilities and stockholders' equity $301,727 $325,029

Certain reclassifications of prior period data have been made to conform to

the current presentation.

First Call Analyst:
FCMN Contact:

Source: Access Integrated Technologies, Inc.

CONTACT: Suzanne Moore of AccessIT, +1-973-290-0080,
smoore@accessitx.com; or Trent Freeman Casey of Sayre & Williams,
+1-310-396-2400, for AccessIT

Web site:

http://www.accessitx.com/

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