Axia Releases Results for Q3FY12

• NGN Services revenue increased 6% to $15.9 million reflecting increases from each business unit and growing market penetration.
  
  
• Operating income of $2.0 million more than doubled compared to the prior quarter.
  
  
• Quarterly EPS of $0.09 per share includes a fair value gain of $0.05 from Covage's acquisition of an increased interest in the Hérault network.  Excluding this transaction EPS would have been $0.04 for the quarter compared to $0.02 per share from the prior quarter.
  
  
• Total customer connections grew 3% from the prior quarter.

CALGARY, May 14, 2012 /CNW/ - Axia NetMedia Corporation (Axia) today announced the results for its Q3FY12 for the period ended March 31, 2012.

SUMMARY OF Q3FY12 CONSOLIDATED FINANCIAL INFORMATION

	Q3FY 12			Q2FY12			Q1FY12
($000s except per share amounts)
NGN Services revenue	15,906			15,067			14,823
Revenue	18,196			17,696			17,997
Operating income	1,977			730			770
Income from investment under equity accounting	950			829			235
Fair value gain from acquisition	2,962			n/a			n/a
Net income attributable to common shareholders	5,437			1,569			1,150
Net income per share (diluted)	$0.09			0.02			0.02

Consolidated revenue for the third quarter was $18.2 million, an increase of $0.5 million (3%) from $17.7 million for the prior quarter. This is a result of increased NGN Services revenue across all regions reflecting an increase in market penetration.  Net income attributable to common shareholders was $5.4 million ($0.09 per fully diluted share) for the quarter as compared to $1.6 million ($0.02 per fully diluted share) for the prior quarter. Included in net income is Covage's increased ownership interest in the Hérault network that resulted in a gain of $3.0 million or $0.05 per share.

The unaudited interim condensed consolidated financial statements for the quarter ended March 31, 2012 and related Management's Discussion & Analysis (MD&A) have been reviewed and approved by Axia's Audit Committee and Board of Directors.  Axia recognizes that the majority of its investors are now accessing Axia's corporate and financial information either through pushed news services, directly from Axia's corporate website or SEDAR.  Thus, Axia has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and also posted at www.axia.com.

AXIA'S CONFERENCE CALL SCHEDULED

A conference call for the investment community will be held Monday, May 14, 2012 at 3 p.m. (Eastern) and 1 p.m. (Mountain).

To participate in the conference call, please dial [phone] in Toronto and internationally. If you are connecting from other parts of Canada, dial 1-888-231-8191.  Please call ten minutes prior to the start of the call. A live webcast (listen only mode) of the conference call will be available at:

http://www.newswire.ca/en/webcast/detail/958627/1027581

A replay of the conference call will be available at [phone] or 1-855-859-2056, passcode 74407262 from 4 p.m. (ET) Monday, May 14, 2012 to midnight (ET) Monday, May 21, 2012, or through the webcast archives at http://www.newswire.ca.

ABOUT AXIA

Axia sells services over fibre optic communications infrastructure in jurisdictions that have implemented the Axia NGN Solution. To date, Axia has networks in Alberta, France, Singapore, Spain and Massachusetts. Axia trades on the Toronto Stock Exchange under the symbol "AXX".

please visit Axia's website at www.axia.com, or contact:

Dawn Tinling
VP, Investor Relations and Communications
Axia NetMedia Corporation
[phone]
[email protected]