Diversinet Reports First Quarter 2012 Financial Results

TORONTO, April 27, 2012 /CNW/ - Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF), a leader in secure mobile health that "Powers Care Coordination through Mobility," reported its first quarter 2012 results for the period ended March 31, 2012. All dollar amounts are in U.S. dollars.

Financial Highlights

Revenues for the first quarter were $282,000, compared to $444,000 in the same period a year ago. Revenues in the first quarter of 2012 included $185,000 from the company's license and reseller agreement with Mihealth Global Systems ("Mihealth") while revenues in the first quarter of 2011 included $382,000 from Mihealth. Deferred revenues for the first quarter were $317,000, compared to $57,000 in the same period a year ago.

Net loss in the first quarter was $1.4 million or $(0.03) per share, compared to $1.1 million or $(0.03) per share in the same period a year ago. First quarter 2012 net loss included non-cash items of $135,000 in stock-based compensation, $15,000 in depreciation, and a foreign exchange loss of $7,000. This compares to non-cash items in the same year-ago quarter of $166,000 in stock-based compensation, $14,000 in depreciation, and a foreign exchange gain of $25,000.

Cash and cash equivalents were $6.2 million at March 31, 2012 and $7.4 million at December 31, 2011.

Operational Highlights

  • Dr. Hon Pak was appointed Chief Executive Officer and member of the company's board of directors after serving as interim CEO since December 2011 and on Diversinet's executive advisory board since September 2011.
  • The company delivers a secure technology platform that supports healthcare coordination through mobility. Components of the technology include a Care Coordination Engine, providing a "configure once-deploy many" capability for clients who need a HIPAA-compliant mobile engagement tool for consumers/patients and providers/staff.
  • During April, 2012 the ehealth radio network interviewed Dr. Pak where he addressed issues in the telehealth space and provided his views on how Diversinet's solutions can be integrated into the mobile heathcare ecosystem.  A link to the interview is available at www.diversinet.com under the 'feature' section.
  • The University of Nebraska Medical Center (UNMC) started using Diversinet's MobiSecure® SDK on a non-commercial basis to determine if the SDK could interface with the UNMC's preoperative treatment algorithms. Diversinet will provide a "sandbox" environment until September 2012 to allow the UNMC to gain familiarity with the MobiSecure platform and determine if it wants to acquire a commercial software license.
  • AirStrip Technologies, a leading developer of first-in-class mobile technology that enables access to live and actionable patient data, selected Diversinet's government-certified MobiSecure SDK solution for the crucial security validation needed to offer mobile healthcare applications to military and other U.S. government agencies. Integrating MobiSecure will enable AirStrip applications to provide levels of authentication and encryption necessary for use in government organizations such as military hospitals.
  • Diversinet expanded its intellectual property portfolio with the award of U.S. patent No. 8,130,961, titled "Method and system for client-server mutual authentication using event-based OTP." This patent defines a method of protecting client-server communications and is the foundation of the MobiSecure messaging protocol. It provides authentication services through the use of one-time passwords (OTPs), and encryption services through the use of a unique key per-transaction encryption scheme. Diversinet's intellectual property portfolio now includes 18 patents and 30 patent applications.

"In the first quarter of 2012, we turned our focus to care coordination," stated Pak. "This field represents a more patient-centered and systems-based approach that improves the value of healthcare, with an emphasis on wellness and prevention. Fundamental to this shift is a focus on patient engagement and care coordination. As we advance through 2012, we expect to enable healthcare organizations to mobilize their care coordination with our leading solutions for secure mobile applications."

Financial Summary

       Q1 2012      Q1 2011
Revenues $281,911 $444,250
Cost of revenues 19,828 6,031
Gross margin 262,083 438,219
     
Expenses    
 Research and development 791,012 716,059
 Sales and marketing 331,684 412,783
 General and administrative 549,697 443,200
 Depreciation 14,798 14,409
  1,687,191 1,586,451
Loss before the undernoted (1,425,108) (1,148,232)
Foreign exchange gain (loss) (6,932) 25,185
Interest income 4,782 12,127
Loss for the period $(1,427,258) $(1,110,920)
Basic and diluted earnings (loss) per share $(0.03) $(0.03)
     
Cash and cash equivalents $6,170,194 $11,180,694
Total assets $6,536,720 $11,487,246
Total current liabilities $656,593 $393,148
Total shareholders' equity $5,880,127 $11,094,098
     
Weighted average basic and fully diluted common shares outstanding 43,009,347 42,325,727

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

About Diversinet

Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) provides patented and proven secure products that enable healthcare organizations to rapidly deploy HIPAA-compliant mobile healthcare (mHealth) applications to power care coordination. 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 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 
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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