01 Communique Reports Third Quarter Fiscal 2012 Results

TORONTO, 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 Communique
Established 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 INFORMATION
Interim 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   $ 325,424
Cost 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     1,501,689
Patent litigation & re-examination expenses     425,000     227,529       425,000     1,167,822
Research and development     244,092     239,556      737,567     742,898
Interest     (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     59,918,490
Diluted     60,636,502     60,115,197      60,428,803     59,918,490

 
 

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Interim 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-11
Cash 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 period
to 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     470,121
Investing 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     4,869,398
Cash 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


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