Diversinet Reports First Quarter 2009 Financial Results



    
                 Third Consecutive Quarter of Profitability
                         Quarterly Revenues up 488%
    

    TORONTO, May 1 /CNW/ - Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF),
a leading provider of secure application platforms for the mobile world, today
announced financial results for first quarter of 2009. All dollar amounts are
in U.S. dollars.
    Revenues for the quarter were $2,010,000, up 488% from $342,000 in the
first quarter of 2008. The Q1 2009 revenues include $1,625,000 from the $40
million five-year worldwide license and revenue share agreement with AllOne
Mobile Corporation ("AllOne") signed in Q3 2008.
    The net income for the first quarter of 2009 was $182,000 or $0.00 per
share, compared to a net loss of $1,159,000, or $0.03 per share in the first
quarter of 2008. Included in the first quarter net income are stock-based
compensation, depreciation and amortization of $266,000 ($227,000 in Q1 2008).
Also included in the first quarter net income is a foreign exchange loss of
$323,000 ($21,000 gain in Q1 2008). Cash and cash equivalents at March 31,
2009 were $10,719,000 and $12,075,000 at December 31, 2008.

    
    Company, customer and product solution highlights include:

    -   During the first quarter, AllOne, our exclusive global health care
        partner announced that in response to soldiers returning home with
        traumatic brain injuries and other significant injuries, the U.S.
        military is launching a pilot telehealth outreach program to better
        track their progress. Through AllOne MobileSM, a health information
        management application provided by AllOne Health and secured by
        Diversinet, secure, two-way mobile technology will link wounded
        warriors recuperating at home with their case managers and unit
        support staff.

        AllOne Mobile's system will give injured service members access to
        case managers and other military personnel who will monitor and stay
        in touch with Soldiers through personalized encrypted messages. Data
        received from Soldiers will help to better personalize and monitor
        daily care. Initially, AllOne Mobile's platform is anticipated to
        support the rehabilitation needs of up to 10,000 returning soldiers
        in a phased implementation over the next year.

    -   We are extending our MobiSecure Wallet and Vault software
        capabilities to allow secure access and communicate static data into
        two-way secure data exchange, messaging and challenge response to our
        AllOne Mobile solution. This new innovation expands our health care
        market opportunity to include case management and disease management
        control and follow-up.

    -   Also during Q1 2008, AllOne announced two deals that expand the
        national reach of AllOne Mobile, a wireless application that manages
        personal health information and is secured by Diversinet, to nearly
        400,000 potential users. Significa Insurance Group and Erin Group
        Administrators members can securely view, manage and exchange their
        health care information with physicians, hospitals, pharmacies and
        other health care providers anytime, anywhere - without the need for
        an Internet connection. Specifically, AllOne Mobile will help these
        consumers and their families by allowing them to do things on their
        mobile phones such as:
           -  View and send insurance coverage information,
           -  Track prescription drugs,
           -  Catalog allergies, or fax a child's allergy records to the
              school nurse,
           -  Send health information, including a family health history, to
              a physician, and
           -  Receive health tips to better manage chronic conditions.
    

    Albert Wahbe, CEO and Chairman stated "While Q1 saw the introduction of
additional customers through our relationship with AllOne, we believe that we
can make additional progress in the health care industry even in these
challenging economic times. We are pleased to report our third consecutive
profitable quarter."

    About Diversinet

    Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) is a leading provider
of secure application platforms for the mobile world utilizing wireless
authentication and access solutions that secure the personal identity,
transactions and data of consumers over almost any mobile phone or handheld
device. Diversinet's reliable, end-to-end MobiSecure Wallet and Vault products
provide global, secure and cost effective applications to mobilize personal
health records, financial services transactions and identity protection
management. Connect with Diversinet Corp. 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 anticipated future revenues of the company and success of current
product offerings and the term of the agreement with AllOne Mobile
Corporation. 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.



    Diversinet Corp.
    CONSOLIDATED BALANCE SHEETS
    (in United States dollars)
    (Unaudited)
                                                      March 31   December 31
                                                          2009          2008
                                                             $             $
    -------------------------------------------------------------------------

    ASSETS
    Current assets
    Cash and cash equivalents                       10,718,887    12,075,422
    Accounts receivable (note 2(c))                     48,320             -
    Prepaid expenses                                    40,846        57,346
    -------------------------------------------------------------------------
    Total current assets                            10,808,053    12,132,768
    -------------------------------------------------------------------------
    Property and equipment, net (note 4)               245,081       255,264
    -------------------------------------------------------------------------
    Total assets                                    11,053,134    12,388,032
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities
    Accounts payable                                   140,118       168,078
    Accrued liabilities (note 5)                       199,145       511,961
    Deferred revenue                                 1,221,667     2,646,356
    -------------------------------------------------------------------------
    Total current liabilities                        1,560,930     3,326,395
    -------------------------------------------------------------------------

    Shareholders' equity
    Share capital (note 6)                          68,127,743    68,099,993
    Contributed surplus                              7,817,081     7,596,686
    Share purchase warrants (note 6)                    13,687        13,687
    Deficit                                        (64,945,586)  (65,128,008)
    Accumulated other comprehensive income:
      Cumulative translation adjustment             (1,520,721)   (1,520,721)
    -------------------------------------------------------------------------
    Total shareholders' equity                       9,492,204     9,061,637
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity      11,053,134    12,388,032
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Diversinet Corp.
    CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
    AND DEFICIT AND COMPREHENSIVE NET INCOME (LOSS)
    (in United States dollars)
    (Unaudited)

                                                 Three months ended March 31
                                                          2009          2008
                                                             $             $
    -------------------------------------------------------------------------

    Revenues                                         2,010,275       341,595
    Cost of revenues                                    41,937        82,063
    -------------------------------------------------------------------------
    Gross margin                                     1,968,338       259,532

    Expenses
      Research and development                         657,476       628,023
      Sales and marketing                              379,519       409,957
      General and administrative                       439,480       446,455
      Depreciation and amortization                     17,832        25,546
    -------------------------------------------------------------------------
                                                     1,494,307     1,509,981
    -------------------------------------------------------------------------
    Income (loss) before the undernoted                474,031    (1,250,449)
    Foreign exchange gain (loss)                      (323,042)       21,401
    Interest income                                     31,433        70,407
    -------------------------------------------------------------------------
    Net income (loss) for the period and
     comprehensive net income (loss)                   182,422    (1,158,641)
    -------------------------------------------------------------------------

    Deficit, beginning of period                   (65,128,008)  (63,178,675)
    Net income (loss) for the period                   182,422    (1,158,641)
    -------------------------------------------------------------------------
    Deficit, end of period                         (64,945,586)  (64,337,316)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted earnings (loss) per share           0.00         (0.03)
    Weighted average basic common
     shares outstanding                             47,031,935    43,167,783
    Weighted average fully diluted common
     shares outstanding (note 7)                    47,033,810    43,167,783



    Diversinet Corp.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in United States dollars)
    (Unaudited)

                                                 Three months ended March 31
                                                          2009          2008
                                                             $             $
    -------------------------------------------------------------------------

    Cash provided by (used in):

    OPERATING ACTIVITIES
    Net income (loss) for the period                   182,422    (1,158,641)
    Items not requiring an outlay of cash:
      Depreciation and amortization                     17,832        25,546
      Stock based compensation expense (note 7)        248,145       201,654
    -------------------------------------------------------------------------
                                                       448,399      (931,441)
    Changes in non-cash working capital:
      Accounts receivable and other receivables        (48,320)      122,687
      Prepaid expenses                                  16,500         9,013
      Accounts payable                                 (27,960)      (53,156)
      Accrued liabilities                             (312,816)     (591,816)
      Deferred revenue                              (1,424,689)      (93,969)
    -------------------------------------------------------------------------
    Cash used in operations                         (1,348,886)   (1,538,682)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES

    -------------------------------------------------------------------------
    Cash provided by financing activities                    -             -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
      Purchase of property and equipment                (7,649)       (1,283)
    -------------------------------------------------------------------------
    Cash used in investing activities                   (7,649)       (1,283)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net decrease in cash and cash equivalents
     during the period                              (1,356,535)   (1,539,965)

    Cash and cash equivalents, beginning
     of the period                                  12,075,422     8,394,286

    -------------------------------------------------------------------------
    Cash and cash equivalents, end
     of the period                                  10,718,887     6,854,321
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental cash flow information:
      Interest received                                 31,433        70,407
    Supplemental disclosure relating to
     non-cash financing and investing activities:
      Issuance of shares to employees (note 6a)         27,750        29,499
    -------------------------------------------------------------------------

    Cash and cash equivalents is comprised of:
      Cash                                             569,207       543,949
      Cash equivalents                              10,149,680     6,310,372
    -------------------------------------------------------------------------
                                                    10,718,887     6,854,321
    -------------------------------------------------------------------------
    





For further information:

For further information: Diversinet Corp., David Hackett, Chief
Financial Officer, (416) 756-2324 ext. 275, dhackett@diversinet.com

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