01 Communique Reports Second Quarter 2008 Results



    TORONTO, June 5 /CNW/ - 01 Communique Laboratory Inc. (TSX:ONE) today
announced results for its second quarter fiscal 2008, which ended April 30th.
Revenue for the quarter was $172,247 with a loss of $217,412 or $0.004 per
share compared to revenue of $176,353 with a loss of $406,566 or $0.01 per
share for the same period in 2007. We completed the period with $2,333,244 of
cash and cash equivalents.
    "Throughout the second quarter we continued with our three part plan to
build our business," said Andrew Cheung, President and CEO for 01 Communique.
"First, we continue to market our suite of remote access products using our
direct sales efforts and web presence. Our product offering is a showcase for
our technology. Second, we continue to support Hitachi in Japan as we wait for
their sales and marketing efforts to pay off. Third, we continue with our
patent litigation against Citrix Systems Inc. (NSDQ:CTXS). We believe we have
a strong case and will continue to aggressively pursue this litigation on
behalf of our shareholders."

    Highlights:

    (1) Expenses. Operating expenses for the quarter of $388,410 were in line
    with expectations and were $85,185 less than the $473,595 incurred for
    second quarter 2008. This reduction is a result of a reduction in
    litigation expenses, increase in interest revenue and a reduction in
    selling, general and administrative expenses. Our expenses are expected
    to continue at the current level for the third quarter at which time they
    will be re-evaluated.

    (2) Liquidity and cash resources. We completed the period with cash and
    cash equivalents of $2,333,244 a decrease of $367,257 for the quarter.
    Cash was used to fund the operating loss of $217,412 and the
    $217,589 decrease in non-cash working capital primarily a result of an
    increase in loans and receivables and reduction in accounts payable and
    accrued liabilities. There was a $74,167 source of cash from the issuance
    of common shares from options exercised. The cash required to fund the
    business for the third quarter is expected to be approximately $300,000.

    (3) Hitachi Business Solution "Hitachi". During the second quarter a new
    version of DoMobile, Version 2.6, with enhanced support for wireless
    devices and other new features has been completed and is scheduled to be
    released in the third quarter to their prospective customers. We continue
    to support Hitachi as we wait for their sales and marketing initiatives
    to produce revenue.

    (4) Patent litigation against Citrix. We commenced a patent infringement
    lawsuit against Citrix Systems Inc. in February 2006. During the quarter
    (as disclosed in our press release issued March 13th ) the judge in the
    case issued a memorandum and order staying the case pending
    re-examination of the patent underlying our claims. The court vacated all
    scheduled hearings and conferences and will hold all pending motions in
    abeyance, with the exception of 01 Communique's motion to show cause.
    Subsequently, the court issued a memorandum and order, in respect of the
    show cause motion, finding that Citrix had acted with extreme negligence
    in producing source code during discovery. The court found such conduct
    tantamount to bad faith and awarded the Company attorneys' fees incurred
    as a result of Citrix's negligence. We remain very confident in the
    merits of our case.

    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 (TSX: ONE) is an innovative force in
the development and delivery of remote access and support products and
integrated communications software. 01's suite of products includes its remote
access product line I'm InTouch (www.imintouch.net) and its remote support
product I'm OnCall (www.imoncall.com). For more information on its products,
visit www.01com.com or call (905) 795-2888 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.


    
                       SELECTED FINANCIAL INFORMATION
                         Consolidated Balance Sheets
                     April 30, 2008 and October 31, 2007
                                 (Unaudited)

                                                Apr. 30, 2008  Oct. 31, 2007
                                                -------------- --------------

    Assets
    Current assets
      Cash and cash equivalents                  $  2,333,244   $  2,886,270
      Loans and accounts receivable                   199,856        189,681
      Prepaid expenses and other assets                52,998         24,385
                                                -------------- --------------
                                                    2,586,098      3,100,336

    Capital assets                                     36,352         23,704
                                                -------------- --------------
                                                 $  2,622,450   $  3,124,040
                                                -------------- --------------
                                                -------------- --------------

    Liabilities & Shareholders' Equity

    Current liabilities
      Accounts payable & accruals                $    124,836   $    281,946
      Deferred revenue                                 97,042        102,032
                                                -------------- --------------
                                                      221,878        383,978

    Shareholders' equity
      Share capital                                30,501,558     30,338,753
      Contributed surplus                             652,828        645,453
      Share purchase warrants                          30,751         30,995
      Agent options                                   339,674        339,674
      Deficit                                     (29,124,239)   (28,614,813)
                                                -------------- --------------
                                                    2,400,572      2,740,062
                                                -------------- --------------
                                                 $  2,622,450   $  3,124,040
                                                -------------- --------------
                                                -------------- --------------



                       SELECTED FINANCIAL INFORMATION
       Consolidated Statements of Operations and Comprehensive Income
                                 (Unaudited)
         For the 3 and 6 month periods ended April 30, 2008 and 2007

                  3 mos. ending  3 mos. ending  6 mos. ending  6 mos. ending
                  Apr. 30, 2008  Apr. 30, 2007  Apr. 30, 2008  Apr. 30, 2007
                  -------------- -------------- -------------- --------------

     Revenue       $    172,247   $    176,353   $    259,729   $    260,157
     Cost of
      revenue             1,249         24,445          1,990         25,974
                  -------------- -------------- -------------- --------------
                        170,998        151,908        257,739        234,183

    Expenses
     (income)
    Selling,
     general and
     administrative     211,608        272,742        426,144        467,848
    Patent
     litigation               -         29,527              -        142,091
    Research and
     development        203,794        171,653        396,106        339,732
    Interest            (28,381)        (7,541)       (57,906)       (12,892)
    Depreciation
     and
     amortization         1,389          7,214          2,821         14,498
                  -------------- -------------- -------------- --------------
                        388,410        473,595        767,165        951,277
                  -------------- -------------- -------------- --------------

    Loss before
     interest &
     accretion on
     liability
     component
     of debenture      (217,412)      (321,687)      (509,426)      (717,094)

    Debenture
     settlement
     expense                  -         72,069              -         72,069
    Accretion on
     liability
     component of
     debenture                -          3,425              -          8,306
    Interest
     expense                  -          9,385              -         28,135
                  -------------- -------------- -------------- --------------
    Loss for the
     period and
     comprehensive
     loss              (217,412)      (406,566)      (509,426)      (825,604)
                  -------------- -------------- -------------- --------------
                  -------------- -------------- -------------- --------------

    Loss per common
     share
      Basic        $     (0.004)  $      (0.01)  $      (0.01)  $      (0.02)
      Diluted      $     (0.004)  $      (0.01)  $      (0.01)  $      (0.02)

    Weighted ave.
     number of
     common shares
     outstanding
      Basic          51,485,207     43,308,874     51,258,864     43,069,797
      Diluted        51,485,207     43,308,874     51,258,864     43,069,797



                       SELECTED FINANCIAL INFORMATION
                     Consolidated Statements of Deficit
                                 (Unaudited)
         For the 3 month and 6 periods ended April 30, 2008 and 2007

                  3 mos. ending  3 mos. ending  6 mos. ending  6 mos. ending
                  Apr. 30, 2008  Apr. 30, 2007  Apr. 30, 2008  Apr. 30, 2007
                  -------------- -------------- -------------- --------------

    Loss for the
     period and
     comprehensive
     loss          $   (217,412)  $   (406,566)  $   (509,426)  $   (825,604)

    Deficit,
     beginning of
     period         (28,906,827)   (27,013,039)   (28,614,813)   (26,594,001)

                  -------------- -------------- -------------- --------------
    Deficit, end
     of period     $ (29,124,239) $(27,419,605)  $(29,124,239)  $(27,419,605)
                  -------------- -------------- -------------- --------------
                  -------------- -------------- -------------- --------------



                       SELECTED FINANCIAL INFORMATION
                    Consolidated Statements of Cash Flows
                                 (Unaudited)
         For the 3 and 6 month period ended April 30, 3008 and 2007

                  3 mos. ending  3 mos. ending  6 mos. ending  6 mos. ending
                  Apr. 30, 2008  Apr. 30, 2007  Apr. 30, 2008  Apr. 30, 2007
                  -------------- -------------- -------------- --------------

    Cash provided
     by (used in):

    Operating
     activities:
      Loss for the
       period          (217,412)      (406,566)      (509,426)      (825,604)
      Items not
       involving
       cash:
        Depreciation
         and
         amortization     1,389          7,214          2,821         14,498
        Accretion on
         liability
         component of
         debenture            -          3,425              -          8,306
      Non-cash portion
       of debenture
       settlement
      Expense                 -          9,569              -          9,569
      Stock-based
       compensation       1,750         15,061          7,375         30,122
      Change in
       non-cash
       working
       capital         (217,589)      (244,353)      (200,888)       (89,224)
                  -------------- -------------- -------------- --------------
                       (432,862)      (615,650)      (700,118)      (852,333)

    Financing
     activities:
      Issue of
       common
       shares            74,167      4,074,784        162,561      4,422,160


    Investing
     activities:
      Purchase of
      capital assets     (9,562)             -        (15,469)          (697)
      Redemption of
       debenture              -       (500,000)             -       (500,000)

    Increase
     (decrease)
     in cash           (367,257)     2,959,134       (553,026)     3,069,130

    Cash & cash
     equivalents,
     beginning of
     period           2,700,501        669,554      2,886,270        559,558
                  -------------- -------------- -------------- --------------
    Cash & cash
     equivalents,
     end of period $  2,333,244   $  3,628,688   $  2,333,244   $  3,628,688
                  -------------- -------------- -------------- --------------
    





For further information:

For further information: INVESTOR CONTACT: Brian Stringer, Chief
Financial Officer, 01 Communique, (905) 795-2888 x204,
brian.stringer@01com.com


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