Diversinet Corp. Reports Fourth Quarter and Fiscal 2012 Results

TORONTO, March 4, 2013 /CNW/ - Diversinet Corp. (TSX Venture: DIV, OTCQB: DVNTF), a leader in secure mobile health that "Powers Care Coordination through Mobility," reported its fourth quarter and fiscal 2012 results for the period ended December 31, 2012. All dollar amounts are in U.S. dollars.

"In 2012, Diversinet increased its profile in the growing wireless health and mHealth marketplace," said Dr. Hon Pak, Diversinet's CEO. "As the mHealth market continues to evolve in 2013, we will remain focused on the key elements of our mobile health strategy. This includes enhancing and introducing new products and solutions, and advancing market adoption of our technology."

Q4 and Fiscal 2012 Financial Highlights
Revenues for the fourth quarter were $362,000 compared to $382,000 in the same year-ago period. Revenues for the full year were $1.5 million, compared to $1.3 million in 2011.

Net loss for the fourth quarter was $1.1 million or $(0.03) per share, compared to $1.7 million or $(0.04) per share the year-ago quarter. The net loss in the fourth quarter 2012 included non-cash items of $34,000 in stock-based compensation expense, $14,000 in depreciation, and a foreign exchange loss of $18,000. This compares with non-cash items in the year-ago quarter of $154,000 in stock-based compensation expense, $16,000 in depreciation, and a foreign exchange loss of $52,000.

Net loss for the year was $4.4 million or $(0.10) per share, compared to $5.5 million or $(0.13) per share in 2011. Included in the full-year net income were non-cash items of $292,000 in stock-based compensation, $55,000 in depreciation, and a foreign exchange loss of $28,000. This compares with non-cash items in 2011 of $670,000 in stock-based compensation, $63,000 in depreciation, and a foreign exchange loss of $32,000.

Cash and cash equivalents totaled $3.2 million at December 31, 2012, as compared to the previous year's balance of $7.4 million.

2012 Operational Highlights

  • Diversinet received a one-year contract renewal from the U.S. Army's Telemedicine and Advanced Technology Research Center (part of the U.S. Army Medical Research and Materiel Command) mCare telehealth-outreach program for members of the military recovering from mild traumatic brain injuries and other wounds.

  • Dr. Pak was interviewed by mHealth Zone at the American Telemedicine Association 2012 Fall Forum.  He discussed his views about the emerging mHealth market and recent developments of Diversinet's MobiSecure technology, an enterprise-level mHealth platform that enables care coordination and patient engagement through developing and configuring applications.

  • Diversinet's MobiSecure encryption technology became the first mHealth platform to receive Federal Information Processing Standards (FIPS) 140-2 validation.

  • AirStrip Operations, a leading developer of first-in-class mobile technology that enables access to live and actionable patient data, signed a licensing agreement for the mobiSecure SDK, enabling patient-monitoring applications with federally validated security.

  • The University of Nebraska Medical Center (UNMC) began using Diversinet's MobiSecure® SDK on a non-commercial basis to determine if the SDK could interface with the UNMC's preoperative treatment algorithms. We received the 2012 CATA Alliance Award for Outstanding Product Achievement in Healthcare. The award recognizes outstanding technology engineering development that has resulted in the production of world-class, field-proven products.

  • We received the 2012 Canadian Advanced Technology Alliance (CATAAlliance) Award for Outstanding Product Achievement in Healthcare. The CATAAlliance award recognizes outstanding technology engineering development that has resulted in the production of world-class, field-proven products.

  • In July 2012, Diversinet appointed Bret Jorgensen as chairman of the board.  Mr. Jorgensen succeeded Albert Wahbe, who retired as chairman but remains a member of the board.  Jorgensen brings more than 20 years of experience as a healthcare entrepreneur and corporate transformation executive to Diversinet.

  • mobiHealth Wallet™, a secure, personalized virtual container for downloading, entering, managing and sharing personal health information, was launched in the fourth quarter.  mobiHealth Wallet is compatible with the U.S. federal government's Blue Button Initiative and supports more effective healthcare coordination, personalization and mass customization of care.

  • During Q4 2012, Diversinet undertook an initial cost reduction plan that saw costs reduced by $750,000 on an annual basis.  Furthermore, on March 1, 2013, Alan Portela, CEO of Airstrip, resigned from Diversinet's board of directors.  Airstrip continues to be a customer.

In February 2012, the company's board of directors appointed Hon Pak CEO.  The board believes his leadership will continue to be important to Diversinet's success in the healthcare marketplace.

"As the mHealth market continues to evolve in 2013, we will remain focused on the key elements of our mobile health strategy. As we face challenges in gaining traction for the adoption of our products, we will also be considering strategic and operational alternatives necessary to support our ongoing operations," said Pak.

About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCQB: DVNTF) is answering the challenges of today's healthcare landscape with a secure enterprise mobile healthcare platform that enables interoperability, agility and integration. This technology can be leveraged and customized quickly to meet the ever-changing needs of healthcare organizations and patients - driving patient, provider and payer communications and improved outcomes while lowering costs. Learn more about Diversinet at www.diversinet.com.

The Private Securities Litigation Reform Act of 1995 and Canadian securities laws provide a "safe harbour" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to the success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future including the risks relating to our inability to generate sufficient revenue to fund our operations and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission available at www.sec.gov and Canadian securities regulatory authorities available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Diversinet corp.
Consolidated Balance Sheets
(In United States dollars)

     
As at December 31 2012 2011
Assets    
Current assets:    
  Cash and cash equivalents $   3,162,316 $   7,397,025
  Accounts receivable, net 135,497 287,155
  Tax credit recoverable 201,020 -
  Prepaid expenses 65,972 64,252
  Total current assets 3,564,805 7,748,432
     
  Property and equipment, net 162,434 207,301
Total assets $   3,727,239 $   7,955,733
     
     
     
Liabilities and Shareholders' Equity  
Current liabilities:    
  Accounts payable $      165,587 $      217,539
  Accrued liabilities 331,164 281,011
  Deferred revenue 133,950 284,583
  Total current liabilities 630,701 783,133
     
     
Shareholders' equity:    
  Share capital:    
  Authorized:    
    Unlimited common shares    
  Issued and outstanding:    
  43,009,347 (42,285,171 - 2010)    
    common shares 85,907,548 85,848,861
  Additional paid-in capital 20,001,774 19,755,623
  Share purchase warrants 26,373 39,318
  Deficit (101,318,436) (96,950,481)
  Accumulated other comprehensive income:    
    Cumulative translation adjustment (1,520,721) (1,520,721)
  Total shareholders' equity 3,096,538 7,172,600
     
Total liabilities and shareholders' equity $   3,727,239 $   7,955,733

 

Diversinet corp.
Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)
(In United States dollars)

       
For the year ended December 31 2012 2011 2010
       
Revenues $   1,514,639 $   1,291,714 $   4,931,834
Cost of revenues 140,256 104,600 22,860
Gross margin 1,374,383 1,187,114 4,908,974
       
Expenses:      
Research and development 2,456,140 2,927,551 3,112,225
Sales and marketing 1,314,719 1,664,996 1,783,211
General and administrative 1,908,291 2,058,702 1,888,908
Depreciation 54,636 62,967 65,788
  5,733,786 6,714,216 6,850,132
       
Income (loss) before the undernoted: (4,359,403) (5,527,102) (1,941,158)
       
Foreign exchange gain (loss) (28,120) (31,662) 190,448
Interest income, net 19,568 22,169 57,277
Other income - - 3,560,707
Net income (loss) for the year and comprehensive net income (loss) (4,367,955) (5,536,595) 1,867,274
       
       
Basic and diluted earnings (loss) per share $   (0.10) $   (0.13) $    0.04
Weighted average common shares outstanding 43,221,898 42,587,632 45,029,121
Weighted average fully diluted common shares outstanding 43,221,898 42,587,632 45,029,121

 

Diversinet corp.
Consolidated Statements of Cash Flows
(In United States dollars)

       
For the year ended December 31 2012 2011 2010
       
Cash provided by (used in):      
       
Operating activities:      
  Net income (loss) for the year $  (4,367,955) $  (5,536,595) $  1,867,274
  Items not involving cash:      
    Depreciation 54,636 62,967 65,788
    Foreign exchange gain (10,987) (31,699) (167,297)
    Other income - - (3,060,707)
    Stock-based compensation expense 291,893 669,952 658,991
  Changes in non-cash working capital:      
    Accounts receivable 151,658 (212,005) 4,567
    Tax credit recoverable (201,020) - -
    Prepaid expenses (1,720) (11,479) (17,591)
    Accounts payable (51,952) 74,286 (5,278)
    Accrued liabilities 50,152 (258,982) 266,738
    Deferred revenue (150,633) 239,416 (88,833)
  Cash used in operations (4,235,927) (5,004,139) (476,348)
       
Financing activities:      
  Issue of common shares for cash - - 128,604
  Cash provided by financing activities - - 128,604
       
Investing activities:      
  Purchase of property and equipment (9,769) (89,285) (28,645)
  Cash used in investing activities (9,769) (89,285) (28,645)
       
Foreign exchange gain on cash held in foreign currency 10,987 31,699 167,297
       
Net increase (decrease) in cash and cash equivalents (4,234,709) (5,061,725) (209,092)
       
Cash and cash equivalents, beginning of year 7,397,025 12,458,750 12,667,842
       
Cash and cash equivalents, end of year $  3,162,316 $  7,397,025 $ 12,458,750
       
Supplemental cash flow information:      
  Interest received 19,568 22,169 57,277
       
Supplemental disclosure relating to non-cash financing and investing activities:      
  Issuance of shares to employees and Board 58,687 265,663 284,750
        
Cash and cash equivalents is comprised of:      
  Cash 506,808 253,715 443,684
  Cash equivalents 2,655,508 7,143,310 12,015,066
   $  3,162,316 $  7,397,025 $ 12,458,750

 

SOURCE: Diversinet Corp.

For further information:

Company Contact
Diversinet Corp. 
David Hackett 
Chief Financial Officer 
416-756-2324 ext. 275 
dhackett@diversinet.com 

Investor Relations
Liolios Group, Inc.
Ron Both
Managing Director
949-574-3860 ext 1710
DVNTF@liolios.com

Profil de l'entreprise

Diversinet Corp.

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