01 Communique Reports Results for First Quarter Fiscal 2014

TORONTO, March 13, 2014 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX) today announced results for its first quarter 2014 which ended January 31, 2014. The loss for the first quarter 2014 was $399,367 compared to a loss of $1,060,478 for the same period in 2013, a decrease of $661,111. Excluding non-cash expenses for stock-based compensation and depreciation the adjusted loss for the first quarter 2014 was $350,066 (2013 - $875,548). The Company completed the quarter with $2,573,595 of cash and cash equivalents.

"It has been a long time coming; but now, after almost six years during which we completed a successful re-examination at the USPTO of our patent, the Court has lifted the stay in our patent litigation against Citrix", said Andrew Cheung, President and CEO for 01 Communique. "As we move forward we plan to continue to monitor our expenses closely and adjust them as we see necessary with the primary goal of continuing in the defense of our intellectual property and then to continue with our product development."

"As a testimony to the innovative nature of our technology, our products continue to win awards," said Andrew Cheung. "In January 2014 Internet Telephony awarded our I'm InTouch Meeting "Product of the Year" commenting that I'm InTouch Meeting has proven to be among the best communications and technology solutions on the market."

The Company currently has two patent lawsuits, one against Citrix Systems Inc. ("Citrix") and the other against LogMeIn Inc. ("LogMeIn").

Citrix Litigation -
On February 2, 2006, a lawsuit was filed by the Company in the United States District Court, Northern District of Ohio, Eastern Division, against Citrix alleging infringement of our patent number 6928479 (the "'479 Patent"). As part of the litigation Citrix requested an inter partes reexamination of the '479 Patent by United States Patent and Trademark Office ("USPTO"), and also requested a stay in the Court proceedings. The stay was granted by the Judge in the case on March 12, 2008.
On March 16, 2007, prior to the stay being implemented, the court issued a patent claim construction ruling adopting the Company's claim construction for 19 of the 20 disputed claim terms (commonly referred to as a "Markman Ruling").
On July 6, 2010 a Right of Appeal Notice was issued by the USPTO confirming the patentability of the '479 Patent. Citrix appealed that decision to the USPTO's Patent Trial and Appeals Board ("PTAB").
On October 29, 2013 the PTAB rendered their decision affirming the validity of the '479 Patent. The appeal process is now complete at the USPTO. Citrix has appealed that decision to the United States Court of Appeal for the Federal Circuit and that appeal is now in process. We are confident that we will prevail in this appeal as well.
On February 28, 2014 a Court Order was issued granting 01 Communique's motion to lift the stay and proceed to trial. A pretrial conference is scheduled for October 17, 2014 at which time a trial date will be set. Between now and the pretrial conference the Company and its legal team will be working in earnest to complete everything that is required in preparation for trial.

LogMeIn Appeal -

On September 8, 2010, the Company filed a lawsuit in the Eastern District of Virginia, against LogMeIn alleging infringement of the '479 Patent. The case against LogMeIn proceeded to trial and on March 26, 2013 the Jury in the trial rendered its verdict concluding that 01 Communique's '479 Patent is valid but that LogMeIn does not infringe the patent.

The Company disagrees with the jury's finding of non-infringement and on June 26, 2013 a notice of appeal was filed with the United States Court of Appeal for the Federal Circuit (Appeal Nos. 2013-1479). LogMeIn has filed a cross appeal, (Case No. 2013-1525) in respect of the Court Order concluding that the '479 Patent was valid and enforceable. Their cross appeal has been consolidated with the Company's appeal. To date all briefs that are due have been filed by both parties. The Company remains confident in the merits of its appeal and expects the Hearing to take place in the next several months after which a decision will be rendered.

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 #6,928,479 / #6,938,076 / #8,234,701 and in  Canada by its patents #2,309,398 / #2,524,039 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.
Consolidated Statements of Financial Position
  31-Jan-14 31-Oct-13
Current assets    
    Cash and cash equivalents $      2,573,595 $     3,072,281
    Accounts receivable                   213,349                   225,007
    Prepaid expenses and other assets                     91,182                     36,073
                 2,878,126                3,333,361
Plant and equipment                     15,464                     17,816
  $      2,893,590 $    3,351,177
Liabilities & Shareholders' Equity    
Current liabilities    
    Accounts payable & accruals $        946,026 $    1,048,164
    Deferred revenue                     21,550                     24,582
                    967,576                1,072,746
Shareholders' equity    
   Share capital              39,997,277              39,997,277
   Contributed surplus                4,514,994                4,468,044
   Agent options                   111,780                   111,780
   Deficit            (42,698,037)            (42,298,670)
                 1,926,014                2,278,431
  $     2,893,590 $    3,351,177

01 Communique Laboratory Inc.
Consolidated Statements of Operations and Comprehensive Income
For the 3 month periods ended January 31, 2014 and 2013
  for the 3 months ended  
  31-Jan-14   31-Jan-13
Revenue $      74,923   $      174,475
Cost of revenue                               -                                 -
                        74,923                       174,475
Expenses (income)      
Selling, general and administrative                     289,893                       432,779
Patent enforcement & re-examination expenses                      11,180                       578,707
Research and development                     173,900                       233,556
Interest                           (683)                        (10,089)
                      474,290                    1,234,953
Loss for the period and comprehensive loss                    (399,367)                   (1,060,478)
Loss per common share      
Basic                      $     (0.006)                     $      (0.016)
Diluted                      $     (0.006)                   $      (0.016)
Weighted average number of common shares      
Basic                65,203,807                  64,937,427
Diluted                65,203,807                  64,937,427

01 Communique Laboratory Inc.
Consolidated Statements of Cash Flows
For the 3 month periods ended January 31, 2014 and 2013
  three months ended  
  31-Jan-14 31-Jan-13
Cash provided by (used in):    
Operating activities:    
   Loss for the period $               (399,367) $             (1,060,478)
   Adjustments to reconcile the loss for the period    
to net cash flows from operating activities    
     Depreciation                        2,351                        2,074
     Stock-based compensation                      46,950                    182,856
     Interest income                         (683)                     (10,089)
   Change in non-cash working capital                    (148,620)                    345,255
                    (499,369)                   (540,382)
Interest income received                          683                      10,089
                    (498,686)                   (530,293)
Financing activities:    
    Issue of common shares                             -                      104,500
Investing activities:    
    Purchase of capital assets                             -                         (5,333)
Increase (decrease) in cash                   (498,686)                   (431,126)
Cash and cash equivalents, beginning of period                 3,072,281                 4,547,375
Cash and cash equivalents, end of period $              2,573,595 $              4,116,249




SOURCE: 01 Communique Laboratory Inc.

For further information:

Brian Stringer
Chief Financial Officer
01 Communique
(905) 795-2888 x204

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