01 Communique Reports 1st Quarter 2007 Results, Strengthens its Balance Sheet and Provides a Corporate Update

    TORONTO, March 16 /CNW/ - 01 Communique Laboratory Inc. (TSX:ONE) today
announced results for its first quarter fiscal 2007, which ended January 31st,
2007. Revenue for the quarter was $83,804 with an operating loss of $419,038
compared to revenue of $156,356 with an operating loss of $345,223 for the
first quarter fiscal 2006. Subsequent to the end of the quarter, on
March 16th, receipt for a final prospectus of a previously announced
$4,525,000 public offering was received with closing expected to occur on or
about March 21, 2007.
    "Our focus is to build a highly profitable business based on the value
from our patents and the underlying technology," said Andrew Cheung, President
and CEO. "We are confident that our plan will be successful and with the
aforementioned public offering our Balance Sheet will be sufficiently
strengthened to implement our plan properly. An update is provided below."

    Citrix Litigation - Markman Order Issued - refer to our press release
    dated March 16, 2007.
    We respect the intellectual property rights of others and we expect
others to respect our intellectual property rights. To capitalize on the value
from our intellectual property we commenced a patent infringement lawsuit
against Citrix Systems Inc. (NSDQ:CTXS) in February 2006. The case is moving
forward and we are confident in the merits of our case. The court issued a
patent claim construction ruling adopting our claim construction for 19 of the
20 disputed claims terms. The claim construction hearing, also known as the
Markman hearing, was held on November 2, 2006.
    "We are pleased with the Markman ruling," said Andrew Cheung, President
and CEO for 01 Communique. "The Judge's ruling reaffirms our confidence in the
merits of our case as we prepare in earnest for a jury trial."

    Patent Application
    In addition, we have a patent application for a U.S. patent that was
filed in October 2005 for our remote wake-up a PC technology, which is further
evidence of our innovativeness.

    Technology - Licensing our products
    We have developed a series of products based on the technology underlying
our patents. These award-winning products are a showcase for our patent
protected technology. Under an exclusive arrangement for Japan, Hitachi
Business Solution is marketing an extremely secure enterprise-level remote
access solution built with our technology, called DoMobile-CSE. It is being
distributed in the Japanese market by their parent company's, Hitachi Ltd,
sales force.
    "We value the partnership we have forged with Hitachi," said Andrew
Cheung. "The product we co-developed is now commercially available in Japan.
We are providing support as requested and now await the results from Hitachi's
sales activities."

    Financial Highlights - Strengthening our Balance Sheet.
    The net proceeds from our previously announced public offering are
approximately $4,163,000 which should significantly strengthen our balance
sheet. The use of proceeds will be to retire the $500,000 debenture and for
general working capital. Receipt for the final prospectus has been received
and closing is expected on or about March 21st.
    Operating expenses for the first quarter were $477,682 and are comparable
to expenses of $527,088 for the fourth quarter 2006 and the $490,297 for the
first quarter 2006. Our expenses will be adjusted as required to support the
enforcement of our intellectual property rights and our partnership with
Hitachi Business Solution.

    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.

    For further information on the Company's financial results please go to
www.sedar.com and view the Company's regulatory filings.

                         Consolidated Balance Sheets
                    January 31, 2007 and October 31, 2006

                                              Jan. 31, 2007    Oct. 31, 2006
                                             ---------------  ---------------
    Current assets
      Cash and cash equivalents               $     669,554    $     559,558
      Accounts receivable                           129,779          154,146
      Inventory                                      14,594           15,109
      Prepaid expenses and deposits                  18,346           15,793
                                             ---------------  ---------------
                                                    832,273          744,606

    Capital assets                                   30,523           37,110
                                             ---------------  ---------------
                                              $     862,796    $     781,716
                                             ---------------  ---------------
                                             ---------------  ---------------

    Liabilities & Shareholders' Equity

    Current liabilities
      Accounts payable & accruals             $     433,861    $     290,697
      Deferred revenue                               95,938          106,302
      Current liability portion of debenture        454,992                -
                                             ---------------  ---------------
                                                    984,791          396,999

    Long term liability portion of debenture              -          450,111

    Shareholders' equity
      Share capital                              26,394,761       26,068,445
      Contributed surplus                           358,795          343,734
      Equity portion of debenture                    69,089           69,089
      Share purchase warrants                        30,995           20,195
      Agent unit options                             37,404           27,144
      Deficit                                   (27,013,039)     (26,594,001)
                                             ---------------  ---------------
                                                   (121,995)         (65,394)
                                             ---------------  ---------------
                                              $     862,796    $     781,716
                                             ---------------  ---------------
                                             ---------------  ---------------

             Consolidated Statements of - Operations and Deficit
           For the 3 month periods ended January 31, 2007 and 2006

                                              Jan. 31, 2007    Jan. 31, 2006
                                             ---------------  ---------------

    Revenue                                   $      83,804    $     156,356
    Cost of revenue                                   1,529            2,030
                                             ---------------  ---------------
                                                     82,275          154,326

    Selling, general and administrative             307,670          312,676
    Research and development                        168,079          173,043
    Interest expense (income)                        (5,351)          (2,385)
    Depreciation and amortization                     7,284            6,963
                                             ---------------  ---------------
                                                    477,682          490,297
                                             ---------------  ---------------

    Loss before interest & accretion on
     liability component of debenture              (395,407)        (335,971)

    Accretion on liability component                  4,881            4,262
    Interest expense                                 18,750            5,000

    Loss before non-controlling interest           (419,038)        (345,233)

    Non-controlling interest                              -          171,591

                                             ---------------  ---------------
    Loss for the period                            (419,038)        (173,642)
                                             ---------------  ---------------

    Deficit, beginning of period                (26,594,001)     (24,054,331)

                                             ---------------  ---------------
    Deficit, end of period                    $ (27,013,039)   $ (24,227,973)
                                             ---------------  ---------------
                                             ---------------  ---------------

    Loss per common share
      Basic                                   $       (0.01)   $       (0.00)
      Diluted                                 $       (0.01)   $       (0.00)

    Weighted ave. number of common shares
      Basic                                      41,457,707       35,287,707
      Diluted                                    47,932,378       38,462,707

                    Consolidated Statements of Cash Flows
           For the 3 month periods ended January 31, 2007 and 2006

                                              Jan. 31, 2007    Jan. 31, 2006
                                             ---------------  ---------------
    Cash provided by (used in):

    Operating activities:
      Loss for the period                     $    (419,038)   $    (173,642)
      Items not involving cash:
        Non-controlling interest                          -         (171,591)
        Depreciation and amortization                 7,284            6,963
        Accretion on liability component              4,881            4,262
        Stock-based compensation                     15,061           14,400
      Change in non-cash working capital            155,129          (26,471)
                                             ---------------  ---------------
                                                   (236,683)        (346,079)

    Financing activities:
      Issue of common shares                        347,376            2,700
      Issue of debenture                                  -          500,000
                                             ---------------  ---------------
                                                    347,376          502,700

    Investing activities:
      Purchase of capital assets                       (697)               -

    Increase (decrease) in cash                     109,996          156,621

    Cash, beginning of period                       559,558          651,993
                                             ---------------  ---------------
    Cash, end of period                       $     669,554    $     808,614
                                             ---------------  ---------------
                                             ---------------  ---------------

    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

    %SEDAR: 00010658E

For further information:

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

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