01 Communique Reports Third Quarter 2008 Results



    TORONTO, Sept. 4 /CNW/ - 01 Communique Laboratory Inc. (TSX:ONE) today
announced results for its third quarter fiscal 2008, which ended July 31st.
Revenue for the quarter was $84,116 with a loss of $346,835 or $0.01 per share
compared to revenue of $143,845 with a loss of $822,314 or $0.02 per share for
the same period in 2007. We completed the period with $2,226,970 of cash and
cash equivalents.
    "We are continuing with our three part plan to build our company and
maximize shareholder value," said Andrew Cheung President and CEO for
01 Communique. "First, we continue to enhance and market our suite of remote
access products using our direct sales efforts and web presence. 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)."

    
    Highlights:

    (1)  Expenses. Operating expenses for the quarter of $429,263 were in
    line with expectations and were $533,780 less than the $963,043 incurred
    for third quarter 2007. This reduction is primarily a result of a
    $435,217 reduction in litigation expenses incurred for the patent
    litigation court case against Citrix Systems Inc. (CTXS:NSDQ) and a
    $114,526 reduction in stock-based compensation (a non-cash expense). Our
    expenses are expected to continue at the current level for the fourth
    quarter at which time they will be re-evaluated.

    (2)  Liquidity and cash resources. We completed the period with cash and
    cash equivalents of $2,226,970 a decrease of $106,274 for the quarter.
    Cash was used to fund the operating loss of $346,835 offset by a positive
    change in non-cash working capital of $225,887 which was a result of a
    decrease in loans and accounts receivable of $131,204 as the Company
    collected its Investment Tax Credit for the fiscal 2007 year and an
    increase in accounts payable and accrued liabilities of $83,017.

    (3)  Release of I'm InTouch - Premium Service (patent pending wake-up
    technology). We released a new version of I'm InTouch with new features
    for business users. Marketed as a Premium Service it includes a number of
    new and innovative features such as the ability to remotely wake-up a
    previously shut down computer. The Remote Wake-Up functionality allows
    users to remotely access their distant computers, even if they are not
    powered on. I'm InTouch automatically detects if the computer has been
    turned off and "wakes it up" to provide remote access. I'm InTouch
    Premium also includes powerful new central administration controls that
    allow for multiple computers to be managed and accessed from a single
    screen all under the control of a company administrator, The Premium
    Service not only increases the level of security for remote access but it
    also helps to save money on hydro by allowing you to shutdown your
    computers when away from the office.

    (4)  Hitachi Business Solution "Hitachi". During the third quarter
    DoMobile, Version 2.6, with enhanced support for wireless devices and
    other new features was released to their prospective customers. We
    continue to support Hitachi as we wait for their sales and marketing
    initiatives to produce revenue.

    (5)  Patent litigation against Citrix. We commenced our patent
    infringement lawsuit against Citrix in February 2006. An update follows.
    In March 2008 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 our motion to show
    cause. 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 01 attorneys' fees incurred as a
    result of Citrix's negligence.
    As announced in our press release of June 23rd, the USPTO has issued its
    first office action as part of the re-examination process. We filed our
    response to the USPTO's office action in July and Citrix filed their
    response in August. These responses are available from the USPTO's web
    site.
    The technology underlying the patent is very unique and has already gone
    through a vigorous prosecution process prior to the granting of the
    patent. We anticipate the re-examination will be successful and our plan
    is to continue the process to trial and if necessary any appeal by
    Citrix.

    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.

    
                        01 Communique Laboratory Inc.
                       SELECTED FINANCIAL INFORMATION
                         Consolidated Balance Sheets
                                 (Unaudited)
                     July 31, 2008 and October 31, 2007

                                                July 31, 2008  Oct. 31, 2007
                                                -------------- --------------

    Assets
    Current assets
      Cash and cash equivalents                 $   2,226,970  $   2,886,270
      Accounts receivable                              68,652        189,681
      Prepaid expenses and other assets                37,991         24,385
                                                -------------- --------------
                                                    2,333,613      3,100,336

    Capital assets                                     36,428         23,704
                                                -------------- --------------
                                                $   2,370,041  $   3,124,040
                                                -------------- --------------
                                                -------------- --------------

    Liabilities & Shareholders' Equity

    Current liabilities
      Accounts payable & accruals               $     207,853  $     281,946
      Deferred revenue                                 93,701        102,032
                                                -------------- --------------
                                                      301,554        383,978

    Shareholders' equity
      Share capital                                30,514,558     30,338,753
      Contributed surplus                             654,578        645,453
      Share purchase warrants                          30,751         30,995
      Agent options                                   339,674        339,674
      Deficit                                     (29,471,074)   (28,614,813)
                                                -------------- --------------
                                                    2,068,487      2,740,062
                                                -------------- --------------
                                                $   2,370,041  $   3,124,040
                                                -------------- --------------
                                                -------------- --------------



                        01 Communique Laboratory Inc.
                       SELECTED FINANCIAL INFORMATION
       Consolidated Statements of Operations and Comprehensive Income
                                 (Unaudited)
         For the 3 and 9 month periods ended July 31, 2008 and 2007

                             3 mos.        3 mos.        9 mos.        9 mos.
                            ending        ending        ending        ending
                         31-Jul-08     31-Jul-07     31-Jul-08     31-Jul-07
                       ------------  ------------  ------------  ------------

     Revenue           $    84,116   $   143,845   $   343,845   $   404,002
     Cost of revenue         1,688         3,116         3,678        29,090
                       ------------  ------------  ------------  ------------
                            82,428       140,729       340,167       374,912

    Expenses (income)
    Selling, general
     and administrative    247,302       333,307       673,445       801,155
    Patent litigation            -       435,217             -       577,308
    Research and
     development           197,086       188,590       593,192       528,322
    Interest               (16,513)       (1,251)      (74,419)      (14,143)
    Depreciation and
     amortization            1,388         7,180         4,209        21,678
                       ------------  ------------  ------------  ------------
                           429,263       963,043     1,196,428     1,914,320
                       ------------  ------------  ------------  ------------

    Loss before interest
     & accretion on
     liability component
     of debenture         (346,835)     (822,314)     (856,261)   (1,539,408)

    Debenture settlement
     expense                     -             -             -        72,069
    Accretion on liability
     component of debenture      -             -             -         8,306
    Interest expense             -             -             -        28,135

                       ------------  ------------  ------------  ------------
    Loss for the period
     and comprehensive
     loss              $  (346,835)  $  (822,314)  $  (856,261)  $(1,647,918)
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------

    Loss per common
     share
      Basic            $     (0.01)  $     (0.02)  $     (0.02)  $     (0.04)
      Diluted          $     (0.01)  $     (0.02)  $     (0.02)  $     (0.04)

    Weighted ave.
     number of common
     shares outstanding
      Basic             51,645,482    50,336,818    51,400,457    45,487,707
      Diluted           51,645,482    50,336,818    51,400,457    45,487,707



                        01 Communique Laboratory Inc.
                       SELECTED FINANCIAL INFORMATION
                    Consolidated Statements of Cash Flows
                                 (Unaudited)
         For the 3 and 9 month periods ended July 31, 2008 and 2007

                             3 mos.        3 mos.        9 mos.        9 mos.
                            ending        ending        ending        ending
                         31-Jul-08     31-Jul-07     31-Jul-08     31-Jul-07
                       ------------  ------------  ------------  ------------
    Cash provided
     by (used in):

    Operating activities:
      Loss for
       the period         (346,835)     (822,314)     (856,261)   (1,647,918)
      Items not
       involving cash:
        Depreciation and
         amortization        1,388         7,180         4,209        21,678
        Accretion on
         liability
         component
         of debenture            -             -             -         8,306
        Non-cash portion
         of debenture
         settlement expense      -             -             -         9,569
        Stock-based
         compensation        1,750       116,286         9,125       146,408
      Change in non-cash
       working capital     225,887       269,490        24,999       180,266
                       ------------  ------------  ------------  ------------
                          (117,810)     (429,358)     (817,928)   (1,281,691)

    Financing activities:
      Issue of common
       shares               13,000       125,978       175,561     4,548,138

    Investing activities:
      Purchase of
       capital assets       (1,464)       (6,277)      (16,933)       (6,974)
      Redemption of
       debenture                                                    (500,000)

    Increase (decrease)
     in cash              (106,274)     (309,657)     (659,300)    2,759,473

    Cash and cash
     equivalents,
     beginning
     of period           2,333,244     3,628,688     2,886,270       559,558
                       ------------  ------------  ------------  ------------
    Cash and cash
     equivalents,
     end of period     $ 2,226,970   $ 3,319,031   $ 2,226,970   $ 3,319,031
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------
    





For further information:

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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890