01 Communique Reports Second Quarter Fiscal 2012 Results

TORONTO, June 11, 2012 /CNW/ - 01 Communique Laboratory Inc. (TSX: ONE) today announced results for its second quarter fiscal 2012, which ended April 30, 2012. Revenue for the quarter was $103,284 (2011 - $148,695) with a loss of $615,312 (2011 - $1,139,581). The adjusted loss for the second quarter 2012 was $395,040 ($920,813 in 2011) which is the loss reported under IFRS excluding our non-cash expenses. We completed the quarter with $2,100,218 of cash and cash equivalents.

"During the second quarter and subsequently there have been several key developments in our Company," said Andrew Cheung, President and CEO for 01 Communique. "On February 6, 2012 there was a hearing in respect of our appeal in our litigation against LogMeIn Inc. We remain confident in the merits of our case and are hopeful that a favourable decision will be received returning us to Court. Although we believe that the decision from the Court of Appeals could be received any day now, we do not know when that will occur. Subsequent to the end of the quarter, on June 9, 2012 we entered into a licensing agreement with a set series of payments with Bomgar Corporation ("Bomgar"), which provides that Bomgar receives a license to our patents and all litigation between the parties is settled. There have been no recent developments in our lawsuit against Citrix Systems Inc. as we wait for a decision from the judge in the case in respect of our request to lift the stay. We also launched two exciting new applications for our I'm InTouch service allowing support for Android smartphones and Apple's iPad and iPhone." 

Subsequent Event - Settlement and Licensing Agreement with Bomgar.
As previously announced 01 Communique and WiLAN have entered into a Settlement and Patent License Agreement with Bomgar, which settles all litigation among the parties and provides Bomgar with a license to 01 Communique's US Patent No. 6,928,479 and 6,938,076, US Patent App. No. 95/001,018, Canada Patent No. 2,309,398 and certain patents issuing from or claiming priority to the foregoing.

This is the first license that has been achieved under the previously announced partnership between WiLAN and 01 Communique.  WiLAN's Gladios Division had day-to-day responsibility for developing the licensing program as per the terms of the agreement with 01 Communique. Due to a confidentiality clause contained in the agreement financial terms have not been disclosed.

Financial Highlights.

  • The IFRS loss for the second quarter fiscal 2012 was $615,312 which compared to $1,139,581 for 2011.

  • The adjusted loss for the quarter was $395,040 ($920,813 in 2011) which is the IFRS loss excluding non-cash expenses of $218,066 ($215,555 for 2011) for stock based compensation and $2,206 for depreciation and amortization ($3,213 for 2011).

  • There were no patent enforcement and re-examination expenses recorded for second quarter 2012 compared to $497,340 recorded for the same period in 2011 (primarily expenses related to the LogMeIn patent infringement lawsuit). The Company is responsible for third party costs related to the LogMeIn litigation, which are expected to be minimal while the case is under appeal.

  • Operating expenses for second quarter 2012 were $718,514 ($1,288,207 in 2011). Cash operating expenses net of stock based compensation, depreciation and amortization, and patent enforcement and re-examination expenses were $498,242 for the second quarter 2012 ($572,099 in 2011). The reduction of $73,857 is primarily a result of a reduction in staff and total compensation expenses.

  • Total revenue for the second quarter 2012 was $103,284 a decrease of $45,411 from the second quarter 2011 revenue of $148,695 with the largest decrease in Japan, which is a result of contract engineering fees being recognized in the first quarter 2012. On a year to date basis revenue from Japan has remained relatively consistent year to year.

  • We completed the quarter with $2,100,218 of cash and cash equivalents.

  • For the third quarter 2012 we expect our operating expenses excluding non-cash expenses and patent enforcement and re-examination expenses to be approximately $475,000.

Release of I'm InTouch Go v1.0.
In June we released a mobile app available for download from the Apple AppStore or Android Market. This app turns an iPad, iPhone, or Android device into a fully functional computer by allowing remote control of a desktop computer to run any desktop application as if you had your computer in front of you.
We plan to make this application available free to I'm InTouch customers.

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) 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 #6928479 / #6938076 and in Canada by Patent No. 2,309,398. For more information, 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.

             

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Interim Consolidated Statements of Financial Position
             
(Unaudited)  
    30-April-12     31-October-11  
             
Assets            
Current assets            
  Cash and cash equivalents $       2,100,218   $     3,121,417  
  Accounts receivable   168,457               148,917  
  Prepaid expenses and other assets   71,994                 36,844  
    2,340,669            3,307,178  
             
Property and equipment   16,553                 21,324  
  $       2,357,222   $      3,328,502  
             
Liabilities & Shareholders' Equity            
             
Current liabilities            
  Accounts payable & accrued liabilities $          667,459   $         909,508  
  Deferred revenue   37,358                 46,150  
    704,817               955,658  
             
Shareholders' equity            
  Share capital   36,360,428          36,201,686  
  Contributed surplus   3,120,134            2,619,426  
  Share purchase warrants   -                 58,742  
  Agent options   95,241                 95,241  
  Deficit   (37,923,398)        (36,602,251)  
    1,652,405           2,372,844  
  $       2,357,222   $     3,328,502  



01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Interim Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
For the 3 and 6 month periods ended April 30, 2012 and 2011
                   
  for the 3 months ending   for the 6 months ending
    30-Apr-12   30-Apr-11     30-Apr-12   30-Apr-11
                   
Revenue $        103,284 $        148,695   $        171,372 $       283,960
Cost of revenue                      82                 69                    223                   261
             103,202           148,626             171,149            283,699
                   
Expenses (income):                  
Selling, general and administrative            474,931           531,084          1,007,713            968,932
Patent enforcement & re-examination expenses                      -             497,340                       -              940,293
Research and development             247,802           267,989             493,476           503,342
Interest               (4,219)              (8,206)                (8,893)            (17,509)
             718,514        1,288,207          1,492,296        2,395,058
                   
Loss for the period and comprehensive loss $      (615,312) $   (1,139,581)   (1,321,147) $   (2,111,359)
                   
Loss per common share                  
Basic $         (0.010) $          (0.019)   $         (0.022) $          (0.035)
Diluted              (0.010)             (0.019)               (0.022)              (0.035)
                   
Weighted average number of common shares outstanding                  
Basic      60,216,489      60,625,864       60,163,712       59,823,670
Diluted     60,216,489      60,625,864      60,163,712       59,823,670

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Interim Consolidated Statements of Cash Flows
(Unaudited)
For the 3 and 6 month periods ended April 30, 2012 and 2011
                   
                   
  three months ending   six months ending
    30-Apr-12   30-Apr-11     30-Apr-12   30-Apr-11
Cash provided by (used in):                  
                   
Operating activities:                  
  Loss for the period $        (615,312) $      (1,139,581)   $      (1,321,147) $      (2,111,359)
  Adjustments to reconcile loss for the
period to net cash flows from operating activities:
                 
  Depreciation of property and equipment                 2,206                 3,213                   5,561                  6,951
  Stock-based compensation             218,066              215,555                500,708               387,647
  Interest income   (4,218)   (8,206)     (8,893)   (17,509)
  Change in non-cash working capital            (227,484)              (19,775)               (305,531)               225,294
    (667,742)   (948,794)     (1,129,302)   (1,508,976)
  Interest income received   4,218   8,206     8,893   17,509
             (622,524)            (940,588)            (1,120,409)           (1,491,467)
                   
Financing activities:                  
  Issue of common shares             100,000                57,500               100,000              466,671
Investing activities:                  
  Purchase of property and equipment                  (649)                (3,146)                    (790)                (3,955)
Increase (decrease) in cash            (523,173)             (886,234)           (1,021,199)          (1,028,751)
                   
Cash and cash equivalents, beginning of period          2,623,391          4,726,881            3,121,417           4,869,398
Cash and cash equivalents, end of period $       2,100,218 $       3,840,647   $       2,100,218 $       3,840,647

 

 

SOURCE 01 Communique Laboratory Inc.

For further information:

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


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