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Press release from CNW Group

01 Communique Reports Third Quarter Fiscal 2012 Results

Friday, September 07, 2012

01 Communique Reports Third Quarter Fiscal 2012 Results07:00 EDT Friday, September 07, 2012TORONTO, Sept. 7, 2012 /CNW/ -01 Communique Laboratory Inc. (TSX: ONE) today announced results for its third quarter fiscal 2012, which ended July 31, 2012. Revenue for the quarter was $582,440 ($41,464 in 2011) with a loss of $697,793 ($953,340 in 2011). The adjusted loss for the third quarter 2012 was $271,456 ($654,033 in 2011) which is the loss reported under IFRS excluding our non-cash expenses. We completed the quarter with $2,191,180 of cash and cash equivalents."We have had a number of key developments take place during and subsequent to the third quarter," said Andrew Cheung, President and CEO for 01 Communique. "We received a positive decision in our appeal to the United States Court of Appeals for the Federal Circuit with respect to our litigation with LogMeIn Inc. ("LogMeIn") and are now waiting for the district court to set a trial date. We completed our first licensing agreement in the remote support market with our partner, Wi-LAN Inc. ("WiLAN") (TSX:WIN) (NASD:WILN), and received the first payment. With respect to our lawsuit with Citrix Systems Inc. ("Citrix") and their appeal to the United States Patent and Trademark Office's ("USPTO") Board of Patent Appeals and Interferences, in August 2012 the USPTO Examiner filed the Examiner's Answer to Citrix's Appeal brief affirming his positions in the Right of Appeal Notice which had confirmed the patentability of the claims in our patent that were challenged by Citrix. We expect this appeal to continue forward to a decision. We have written to the Court advising them of the Examiner's Answer as well as the recent decision in the LogMeIn lawsuit and requested that the stay be lifted so the case can proceed to trial. We are waiting for the Court to render a decision on this request. Also, on August 31, 2012 we completed a bought deal financing in which we raised gross proceeds of $3,450,000 and believe that combined with the cash we have on hand there is sufficient cash available to fund operations for the foreseeable future."Financial Highlights:The loss for the third quarter 2012 was $697,793 compared to $953,340 for the third quarter 2011 representing a decrease of $255,547.After adding back non-cash expenses for depreciation and amortization of $1,538 ($2,949 in 2011) and stock based compensation of $424,799 ($296,358 in 2011) the adjusted loss becomes $271,456 ($654,033 in 2011) a decrease of $382,577.The decrease in the adjusted loss for the third quarter is due primarily to the profitable results achieved from our partnership with WiLAN in completing a licensing agreement; an increase in contract services revenue in Japan and a reduction in patent litigation and re-examination expenses for our lawsuit against LogMeIn. In 2012 there have been no expenses incurred for the LogMeIn lawsuit whereas in the third quarter 2011 we incurred expenses of $227,529.For the fourth quarter 2012 we expect our operating expenses excluding non-cash expenses and patent enforcement and re-examination expenses to be approximately $475,000. We are now preparing for trial in our lawsuit against LogMeIn and expect to incur additional expenses.On August 31, 2012, we completed a financing raising $3,450,000 gross proceeds. The net proceeds from the offering are expected to be approximately $2,958,500 which combined with the cash and cash equivalents at July 31, 2012 of $2,191,180 would give us $5,149,680 of cash and cash equivalents.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 Laboratory Inc. (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 / #8234701 and in  Canada by its patent #2309398 and Japan by its patent #4,875,094. For more information, visit www.01com.com or call (905) 795-888 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 INFORMATION              Interim Consolidated Statements of Financial Position              (Unaudited)          31-July-12  31-October-11         Assets      Current assets         Cash and cash equivalents $     2,191,180 $    3,121,417     Accounts receivable  71,343    148,917     Prepaid expenses and other assets  54,630         36,844     2,317,153      3,307,178         Property and equipment  15,680             21,324    $     2,332,833 $     3,328,502         Liabilities & Shareholders' Equity             Current liabilities         Accounts payable & accrued liabilities $        643,008 $        909,508     Deferred revenue  34,964           46,150     677,972           955,658         Shareholders' equity        Share capital  36,635,878      36,201,686    Contributed surplus  3,544,933   2,619,426    Share purchase warrants  ---  58,742    Agent options  95,241       95,241    Deficit  (38,621,191)  (36,602,251)     1,654,861      2,372,844    $     2,332,833 $   3,328,502    01 Communique Laboratory Inc. SELECTED FINANCIAL INFORMATIONInterim Consolidated Statements of Operations and Comprehensive Income     (Unaudited)             For the 3 and 9 month periods ended July 31, 2012 and 2011            for the 3 months ending   for the 9 months ending   31-Jul-12  31-Jul-11  31-Jul-12  31-Jul-11               Revenue $582,440 $41,464 $753,812 $325,424Cost of revenue  38  144     261   405     582,402  41,320  753,551  325,019             Expenses (income)            Selling, general and administrative  614,430     532,757  1,622,145  1,501,689Patent litigation & re-examination expenses  425,000  227,529    425,000  1,167,822Research and development  244,092  239,556   737,567  742,898Interest  (3,327)  (5,182)   (12,221)  (22,691)   1,280,195  994,660   2,772,491  3,389,718             Loss for the period and comprehensive loss  $(697,793) $(953,340)   $(2,018,940) $(3,064,699)             Loss per common share            Basic $     (0.012) $(0.016) $(0.033)  $(0.051)Diluted  $    (0.012) $(0.016) $(0.033) $(0.051)             Weighted average number of common shares            Basic  60,636,502  60,115,197   60,428,803  59,918,490Diluted  60,636,502  60,115,197   60,428,803  59,918,490  01 Communique Laboratory Inc.SELECTED FINANCIAL INFORMATIONInterim Consolidated Statements of Cash Flows(Unaudited)For the 3 and 9 month periods ended July 31, 2012 and 2011        three months ending nine months ending   31-Jul-12  31-Jul-11  31-Jul-12  31-Jul-11Cash provided by (used in):                         Operating activities:             Loss for the period $      (697,793) $    (953,340) $  (2,018,940) $(3,064,699) Adjustments to reconcile loss for the periodto net cash flows from operating activities:              Depreciation      1,538         2,949   7,099      9,900  Stock-based compensation     424,799      296,358  925,507  684,005  Interest income  (3,327)  (5,182)  (12,221)  (22,691) Change in non-cash working capital       87,633      335,282  (217,898)      560,576   (187,150)  323,933  1,316,453  1,832,909 Interest income received  3,327  5,182  12,221  22,691   (183,823)  (318,751)  (1,304,232)  (1,810,218)             Financing activities:             Issue of common shares   275,450  3,450  375,450  470,121Investing activities:             Purchase of capital assets   (665)  -    (1,455)  (3,955)Increase (decrease) in cash  90,962      (315,301)  (930,237)  (1,344,052)             Cash and cash equivalents, beginning of period  2,100,218      3,840,647  3,121,417  4,869,398Cash and cash equivalents, end of period $    2,191,180 $   3,525,346 $   2,191,180 $  3,525,346 SOURCE: 01 Communique Laboratory Inc.For further information: INVESTOR CONTACT: Brian Stringer Chief Financial Officer 01 Communique (905) 795-2888 x204 brian.stringer@01com.com