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Press release from CNW Group

01 Communique Reports Second Quarter Fiscal 2012 Results

Monday, June 11, 2012

01 Communique Reports Second Quarter Fiscal 2012 Results17:00 EDT Monday, June 11, 2012TORONTO, June 11, 2012 /CNW/ -01 Communique Laboratory Inc. (TSX: ONE) today announced results for its second quarter fiscal 2012, which ended April 30, 2012. Revenue for the quarter was $103,284 (2011 - $148,695) with a loss of $615,312 (2011 - $1,139,581). The adjusted loss for the second quarter 2012 was $395,040 ($920,813 in 2011) which is the loss reported under IFRS excluding our non-cash expenses. We completed the quarter with $2,100,218 of cash and cash equivalents."During the second quarter and subsequently there have been several key developments in our Company," said Andrew Cheung, President and CEO for 01 Communique. "On February 6, 2012 there was a hearing in respect of our appeal in our litigation against LogMeIn Inc. We remain confident in the merits of our case and are hopeful that a favourable decision will be received returning us to Court. Although we believe that the decision from the Court of Appeals could be received any day now, we do not know when that will occur. Subsequent to the end of the quarter, on June 9, 2012 we entered into a licensing agreement with a set series of payments with Bomgar Corporation ("Bomgar"), which provides that Bomgar receives a license to our patents and all litigation between the parties is settled. There have been no recent developments in our lawsuit against Citrix Systems Inc. as we wait for a decision from the judge in the case in respect of our request to lift the stay. We also launched two exciting new applications for our I'm InTouch service allowing support for Android smartphones and Apple's iPad and iPhone." Subsequent Event - Settlement and Licensing Agreement with Bomgar.As previously announced 01 Communique and WiLAN have entered into a Settlement and Patent License Agreement with Bomgar, which settles all litigation among the parties and provides Bomgar with a license to 01 Communique's US Patent No. 6,928,479 and 6,938,076, US Patent App. No. 95/001,018, Canada Patent No. 2,309,398 and certain patents issuing from or claiming priority to the foregoing.This is the first license that has been achieved under the previously announced partnership between WiLAN and 01 Communique.  WiLAN's Gladios Division had day-to-day responsibility for developing the licensing program as per the terms of the agreement with 01 Communique. Due to a confidentiality clause contained in the agreement financial terms have not been disclosed.Financial Highlights.The IFRS loss for the second quarter fiscal 2012 was $615,312 which compared to $1,139,581 for 2011.The adjusted loss for the quarter was $395,040 ($920,813 in 2011) which is the IFRS loss excluding non-cash expenses of $218,066 ($215,555 for 2011) for stock based compensation and $2,206 for depreciation and amortization ($3,213 for 2011).There were no patent enforcement and re-examination expenses recorded for second quarter 2012 compared to $497,340 recorded for the same period in 2011 (primarily expenses related to the LogMeIn patent infringement lawsuit). The Company is responsible for third party costs related to the LogMeIn litigation, which are expected to be minimal while the case is under appeal.Operating expenses for second quarter 2012 were $718,514 ($1,288,207 in 2011). Cash operating expenses net of stock based compensation, depreciation and amortization, and patent enforcement and re-examination expenses were $498,242 for the second quarter 2012 ($572,099 in 2011). The reduction of $73,857 is primarily a result of a reduction in staff and total compensation expenses.Total revenue for the second quarter 2012 was $103,284 a decrease of $45,411 from the second quarter 2011 revenue of $148,695 with the largest decrease in Japan, which is a result of contract engineering fees being recognized in the first quarter 2012. On a year to date basis revenue from Japan has remained relatively consistent year to year.We completed the quarter with $2,100,218 of cash and cash equivalents.For the third quarter 2012 we expect our operating expenses excluding non-cash expenses and patent enforcement and re-examination expenses to be approximately $475,000.Release of I'm InTouch Go v1.0.In June we released a mobile app available for download from the Apple AppStore or Android Market. This app turns an iPad, iPhone, or Android device into a fully functional computer by allowing remote control of a desktop computer to run any desktop application as if you had your computer in front of you.We plan to make this application available free to I'm InTouch customers.The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.About 01 CommuniqueEstablished in 1992, 01 Communique (TSX: ONE) offers a suite of remote access services designed for small-medium sized business, mobile professionals and IT service providers. 01's software as a service offerings are deployed on-demand and include functionality enabling on-line meetings, remote computing and IT support. 01's suite of products includes its remote access offering I'm InTouch (www.imintouch.com, its online meeting offering www.imintouchmeeting.com) and its remote support offering I'm OnCall (www.imoncall.com) products are protected in the U.S.A. by its patents #6928479 / #6938076 and in Canada by Patent No. 2,309,398. For more information, visit www.01com.com or call (905) 795-2888 or (800) 668-2185 (North America only).Cautionary Note Regarding Forward-looking Statements.Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use such words as "may", "will", "expect", "believe", "plan", "intend", "are confident" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release.  Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved.  A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk Factors" in the company's Annual Information Form filed on SEDAR.  Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward looking statements. These forward-looking statements are made as of the date of this news release, and the company assumes no obligation to update or revise them to reflect new events or circumstances.              01 Communique Laboratory Inc.SELECTED FINANCIAL INFORMATIONInterim Consolidated Statements of Financial Position       (Unaudited)   30-April-12  31-October-11        Assets      Current assets       Cash and cash equivalents$      2,100,218 $    3,121,417  Accounts receivable 168,457            148,917  Prepaid expenses and other assets 71,994              36,844   2,340,669         3,307,178        Property and equipment 16,553              21,324  $      2,357,222 $     3,328,502        Liabilities & Shareholders' Equity             Current liabilities       Accounts payable & accrued liabilities$         667,459 $        909,508  Deferred revenue 37,358              46,150   704,817            955,658        Shareholders' equity       Share capital 36,360,428       36,201,686  Contributed surplus 3,120,134         2,619,426  Share purchase warrants -              58,742  Agent options 95,241              95,241  Deficit (37,923,398)     (36,602,251)   1,652,405        2,372,844  $      2,357,222 $    3,328,502 01 Communique Laboratory Inc.SELECTED FINANCIAL INFORMATIONInterim Consolidated Statements of Operations and Comprehensive Income(Unaudited)For the 3 and 6 month periods ended April 30, 2012 and 2011           for the 3 months ending  for the 6 months ending   30-Apr-12 30-Apr-11  30-Apr-12 30-Apr-11          Revenue$       103,284$       148,695 $       171,372$      283,960Cost of revenue                    82               69                 223                 261           103,202         148,626          171,149          283,699          Expenses (income):         Selling, general and administrative          474,931         531,084       1,007,713          968,932Patent enforcement & re-examination expenses                    -           497,340                    -            940,293Research and development           247,802         267,989          493,476         503,342Interest             (4,219)            (8,206)             (8,893)          (17,509)           718,514      1,288,207       1,492,296      2,395,058          Loss for the period and comprehensive loss$     (615,312)$  (1,139,581) $ (1,321,147)$  (2,111,359)          Loss per common share         Basic$        (0.010)$         (0.019) $        (0.022)$         (0.035)Diluted            (0.010)           (0.019)            (0.022)            (0.035)          Weighted average number of common shares outstanding         Basic    60,216,489    60,625,864    60,163,712     59,823,670Diluted   60,216,489    60,625,864   60,163,712     59,823,67001 Communique Laboratory Inc.SELECTED FINANCIAL INFORMATIONInterim Consolidated Statements of Cash Flows(Unaudited)For the 3 and 6 month periods ended April 30, 2012 and 2011                     three months ending six months ending  30-Apr-12 30-Apr-11  30-Apr-12 30-Apr-11Cash provided by (used in):                   Operating activities:          Loss for the period$       (615,312)$     (1,139,581) $     (1,321,147)$     (2,111,359) Adjustments to reconcile loss for theperiod to net cash flows from operating activities:          Depreciation of property and equipment               2,206               3,213                5,561                6,951 Stock-based compensation           218,066            215,555             500,708             387,647 Interest income (4,218) (8,206)  (8,893) (17,509) Change in non-cash working capital          (227,484)            (19,775)            (305,531)             225,294  (667,742) (948,794)  (1,129,302) (1,508,976) Interest income received 4,218 8,206  8,893 17,509           (622,524)          (940,588)         (1,120,409)         (1,491,467)          Financing activities:          Issue of common shares           100,000              57,500            100,000            466,671Investing activities:          Purchase of property and equipment                (649)              (3,146)                 (790)              (3,955)Increase (decrease) in cash          (523,173)           (886,234)        (1,021,199)        (1,028,751)          Cash and cash equivalents, beginning of period        2,623,391        4,726,881         3,121,417         4,869,398Cash and cash equivalents, end of period$      2,100,218$      3,840,647 $      2,100,218$      3,840,647  For further information: INVESTOR CONTACT: Brian Stringer Chief Financial Officer 01 Communique (905) 795-2888 x204 brian.stringer@01com.com