Diversinet Reports First Quarter 2011 Financial Results

TORONTO, April 29 /CNW/ - Diversinet Corp. (TSXV: DIV), (OTCBB: DVNTF), a leader in "connected and protected" mobile healthcare communications, reported its first quarter 2011 results for the period ended March 31, 2011. All dollar amounts are in U.S. dollars.

Effective for the 2010 fiscal year, the company has adopted U.S. generally accepted accounting principles ("U.S. GAAP") for the presentation of its consolidated financial statements for Canadian and U.S. reporting requirements, and in this release has restated comparative historical periods accordingly.

Financial Highlights
Revenues for the first quarter were $444,000, compared to $576,000 in the same period a year ago. Revenues in the first quarter of 2011 included $382,000 from the company's license and reseller agreement with Mihealth Global Systems while revenues in the first quarter of 2010 included $346,000 from the company's license and VAR agreement with Intersections, Inc., (Nasdaq: INTX) a global provider of consumer and corporate identity risk management services.

Net loss in the first quarter was $1.1 million or $(0.03) per share, compared to $1.0 million or $(0.02) per share in the same period a year ago. First quarter 2011 net loss included non-cash items of $189,000 in stock-based compensation, $14,000 in depreciation, and a foreign exchange gain of $25,000. This compares to non-cash items in the same year-ago quarter of $223,000 in stock-based compensation, $16,000 in depreciation, and a foreign exchange gain of $188,000.

Cash and cash equivalents at March 31, 2011 were $11.2 million and $12.5 million at December 31, 2010.

Operational Highlights

  • During the first quarter the company remained focused on the key elements of its mobile health strategy, which includes introducing new products and product enhancements, creating customized mobile health applications, and expanding its network of healthcare partners.

  • Based on the strong progress of its Mihealth pilot program, in January, the company entered into a five-year, $5 million exclusive Canadian reseller agreement with Mihealth Global Systems for our MobiSecure health solutions. This new relationship, subject to certain termination rights, enables the company to focus on the large opportunities in the U.S., while Mihealth serves Canada and other international markets. Under the new agreement, Mihealth will initially make the solution tested in North Bay available to medical clinics in Ontario, then eventually throughout Canada.

  • Diversinet's board of directors renewed CEO Wahbe's employment agreement for an additional year (until March 31, 2012). The board believes his leadership will continue to be important to Diversinet's success in the healthcare marketplace.

  • In February, Diversinet announced enhancements to the MobiSecure Platform with more than 50 new features. The improvements also extend support to 70 additional smart phones and tablets, strengthen security compliance and enable faster deployment.

  • In March, the company introduced Clinical Communicator, a new application that enables secure mobile communication between healthcare professionals and patients. It is a HIPAA compliant clinical solution that increases clinician productivity and enhances patient outcomes.

"In the first quarter of 2011, we continued to leverage our proven secure mobile solutions in the rapidly-growing wireless health and mHealth marketplace, and build upon the strong foundation of accomplishments we made in 2010," stated Albert Wahbe, Diversinet's chairman and CEO.

"As we advance through 2011, we expect more doors to open to us, as we continue to benefit from the strengthening, widespread market demand for the secure mobilisation of health information, driven by the clear economics for healthcare organizations."

Financial Summary

       Q1 2011      Q1 2010
Revenues $444,250 $575,724
Cost of revenues 6,031 19,704
Gross margin 438,219 556,020
     
Expenses    
  Research and development 716,059 827,854
  Sales and marketing 412,783 372,361
  General and administrative 443,200 548,649
  Depreciation 14,409 15,705
    1,586,451 1,764,569
Income (loss) before the undernoted (1,157,832) (1,208,549)
Foreign exchange gain 25,185 187,856
Interest income 12,127 16,112
Net income (loss) for the period $(1,110,920) $(1,004,581)
Basic and diluted earnings (loss) per share $(0.03) $(0.02)
     
Cash and cash equivalents $11,180,694 $11,913,804
Total assets $11,487,246 $12,184,670
Total current liabilities $393,148 $441,022
Total shareholders' equity $11,094,098 $11,743,648
     
Weighted average basic and fully diluted common shares outstanding 42,325,727 48,500,871

For complete financial statements, including the notes and management's discussion and analysis, please visit the investors section on our website at www.diversinet.com/AboutUs/Investors.html.

About Diversinet

Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) provides a patented and proven secure application platform that enables healthcare organizations to rapidly deploy HIPAA-compliant mobile healthcare (mHealth) applications to anyone, anytime, anywhere. Diversinet's MobiSecure® platform helps payers and providers meet growing needs for safe, convenient, on-the-go storage and sharing of personal health data. Connect with Diversinet Corp. at www.diversinet.com. Its tagline is "Healthcare. Connected and Protected."

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 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. MobiSecure is a registered trademark of Diversinet Corp.

 

 

SOURCE Diversinet Corp.

For further information:

Company Contact        Investor Relations
Diversinet Corp.        Liolios Group, Inc.
David Hackett        Ron Both
Chief Financial Officer        Managing Director
416-756-2324 ext. 275        949-574-3860 ext 1710
dhackett@diversinet.com        rboth@liolios.com

 

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Diversinet Corp.

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