01 Communique Reports Results for Fiscal 2012

TORONTO, Dec. 17, 2012 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX) today announced results for its fiscal year ended October 31, 2012 and provided an update on the Company's expectations for the upcoming year.

Highlights of 2012 -

  • Revenue for the year of $933,514 compared to $476,342 in 2011.
  • Loss of $2,524,339 for the year compared to $3,646,307 in 2011.
  • Excluding our non-cash expenses for stock based compensation and depreciation the adjusted loss for the year was $1,382,325 a decrease of $1,275,725 from 2011 of $2,658,050.
  • Excluding our non-cash expenses the adjusted loss for the fourth quarter 2012 was $295,991 which is fairly consistent with the $287,256 incurred for the same period in 2011.
  • Finished the year with cash and cash equivalents of $4,547,375.
  • Completed a public offering in August 2012 raising gross proceeds of $3,450,000.
  • Along with our partner Wi-LAN Inc. ("WiLAN") (TSX:WIN) (NASD:WILN) entered into a Settlement and Patent License Agreement with Bomgar Corporation ("Bomgar").
  • The Order from the United States Court of Appeals for the Federal Circuit in respect of our appeal in our patent litigation against LogMeIn Inc. ("LogMeIn") sided with the Company and remanded the case back to the district court for trial.
  • The USPTO Examiner filed the Examiner's answer to Citrix Systems Inc.'s ("Citrix") Appeal brief affirming his positions in the Right of Appeal Notice ("RAN") which confirmed the validity of the claims contested in the re-examination by Citrix.

"We completed the year with $4,547,375 of cash and cash equivalents and believe we have sufficient cash resources for the foreseeable future," said Andrew Cheung, President and CEO for 01 Communique. "Our operating loss adjusted for non-cash expenses was reduced substantially from $2,658,050 in 2011 to $1,382,325 in 2012 primarily a result of an increase in revenue from intellectual property and a reduction in patent litigation and re-examination expenses. During 2012 our operating expenses, excluding our non-cash items (stock based compensation and depreciation) and our patent litigation and re-examination expenses, were $1,865,060 compared to $1,942,765 in 2011. Our patent litigation and re-examination expenses amounted to $470,031 a substantial reduction from the $1,218,300 incurred in 2011. We expect our first quarter 2013 operating expenses excluding non-cash items to be approximately $475,000 and in addition we expect to incur patent litigation and re-examination expenses of approximately $500,000 through to the end of our trial with LogMeIn."

Update on Our Intellectual Property -

"Today, we have a suite of products in the remote access, support and online collaboration markets," said Andrew Cheung. "We plan to continue developing products for these markets and at the same time protect our intellectual property rights. We believe there are significant damages accruing against companies that we believe infringe on our intellectual property. We are currently enforcing our rights against two of these companies, Citrix and LogMeIn. Aside from Citrix and LogMeIn, in conjunction with our partner WiLAN we have identified a number of other such companies."

1. LogMeIn Litigation.
On April 1, 2011, the judge in the case granted LogMeIn's motion for claim construction and its summary judgment motion for non-infringement and removed the case from the court's trial calendar.  We appealed that judgment to the United States Court of Appeals for the Federal Circuit.  On July 31, 2012, the United States Court of Appeals for the Federal Circuit issued its Order in respect of our appeal remanding the case back to the district court for trial. The Order sided with the Company and provided a claim construction in accordance with the construction we offered. A pretrial hearing is scheduled for January 17, 2013 at which time a court date is expected to be set four to six weeks thereafter. We are confident in the merits of our case and are preparing in earnest for trial.

2. Citrix Litigation.  
As part of the litigation Citrix requested an inter partes re-examination of our patent by the United States Patent and Trademark Office ("USPTO"). On March 12, 2008, the judge in the litigation issued a memorandum and order staying the case pending the re-examination.  On July 6, 2010 a Right of Appeal Notice was issued confirming the patentability of the claims in the re-examination that were challenged by Citrix. Citrix filed a Notice of Appeal appealing that decision to the USPTO's Board of Patent Appeals and Interferences ("BPAI"). That appeal is in process and as a part of that process, on August 16, 2012, the USPTO Examiner filed the Examiner's Answer to Citrix's Appeal brief affirming his positions in the RAN which confirmed the validity of the claims contested by Citrix in the re-examination. The next step in the process is expected to be a hearing in front of the BPAI after which we expect them to render their decision. We are confident that the validity of our patent will be affirmed by the BPAI. In the interim, we have written to the Court advising them of the Examiner's Answer as well as the recent decision by the United States Court of Appeals for the Federal Circuit in the LogMeIn lawsuit and  requested the case be reopened so that the stay can be lifted and the case proceed to trial. We are waiting for the Court to render a decision on this request.

3. WiLAN Partnership.
Along with our partner WiLAN we entered into a Settlement and Patent License Agreement with Bomgar, which settled all litigation among the parties and provided Bomgar with a license to 01 Communique's US Patent No. 6,928,479 and 6,938,076, US Patent App. 95/001018 Canada Patent No. 2,309,398 and certain patents issuing from or claiming priority to the foregoing. This was the first license entered into as a result of our partnership with WiLAN. WiLAN's Gladios Division had day-to-day responsibility for developing the licensing program as per the terms of our agreement. We look forward to executing new programs under our agreement.

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 #6928479 / #6938076 / #8234701 and in  Canada by its patent #2309398 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.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Financial Position
     
  31-Oct-12 31-Oct-11
     
Assets    
Current assets    
    Cash and cash equivalents $                  4,547,375 $                  3,121,417
    Accounts receivable                         282,981                         148,917
    Prepaid expenses and other assets                              35,676                           36,844
                       4,866,032                      3,307,178
     
Capital assets                           17,261                           21,324
  $                  4,883,293 $                  3,328,502
     
Liabilities & Shareholders' Equity    
     
Current liabilities    
    Accounts payable & accruals $                     407,770 $                     909,508
    Deferred revenue                           34,596                           46,150
                          442,366                         955,658
     
Shareholders' equity    
   Share capital                    39,566,407                    36,201,686
   Contributed surplus                      3,752,710                      2,619,426
   Share purchase warrants                                   -                             58,742
   Agent options                         248,400                           95,241
   Deficit                 (39,126,590)                   (36,602,251)
                       4,440,927                      2,372,844
  $                  4,883,293 $                  3,328,502
     






01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Operations and Comprehensive Income
For the 3 and 12 month periods ended October 31, 2012 and 2011
           
  for the 3 months ending   for the 12 months ending
  31-Oct-12 31-Oct-11   31-Oct-12 31-Oct-11
Revenue        $ 179,702   $ 150,918     $ 933,514 $ 476,342
Cost of revenue                   11           101             272 506
            179,691     150,817       933,242 475,836
           
Expenses (income)          
Selling, general and administrative          509,760     551,517   2,131,905 2,053,206
Patent enforcement & re-examination expenses                45,031        50,478       470,031 1,218,300
Research and development          137,602    134,918      875,169 877,816
Interest           (7,303)      (4,488)        (19,524) (27,179)
         685,090    732,425   3,457,581 4,122,143
Loss for the period and comprehensive loss       (505,399) (581,608)   (2,524,339) (3,646,307)
           
Loss per common share          
Basic         $ (0.008)   $  (0.010)       $ (0.041) $ (0.061)
Diluted          $ (0.008)   $  (0.010)      $ (0.041) $ (0.061)
           
Weighted average number of common shares          
Basic    63,393,415 60,122,045   61,095,941 59,979,997
Diluted    63,393,415 60,122,045   61,095,941 59,979,997
           






01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Cash Flows
For the 3 and 12 month periods ended October 31, 2012 and 2011
           
  three months ending   twelve months ending
  31-Oct-12 31-Oct-11   31-Oct-12 31-Oct-11
Cash provided by (used in):          
           
Operating activities:          
  Loss for the period $      (505,399) $     (581,608)   $  (2,524,339) $   (3,646,307)
  Adjustments to reconcile the loss for the          
   period to net cash flows from operating          
   activities:          
     Depreciation             1,631               2,949                  8,730              12,849
     Stock-based compensation           207,777            291,403           1,133,284            975,408
     Interest income             (7,303)              (4,488)               (19,524)             (27,179)
  Change in non-cash working capital           (428,290)           (115,213)             (646,188)            445,363
           (731,584)           (406,957)          (2,048,037)         (2,239,866)
Interest income received              7,303               4,488                19,524               27,179
            (724,281)           (402,469)          (2,028,513)         (2,212,687)
           
Financing activities:          
     Issue of common shares         3,083,688                        -             3,459,139            470,121
Investing activities:          
     Purchase of capital assets              (3,212)              (1,460)                (4,668)              (5,415)
Increase (decrease) in cash         2,356,195           (403,929)           1,425,958         (1,747,981)
           
Cash and cash equivalents, beginning of period            2,191,180         3,525,346           3,121,417          4,869,398
Cash and cash equivalents, end of period $     4,547,375 $    3,121,417   $   4,547,375 $    3,121,417

 

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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