01 Communique Reports 3rd Quarter 2007 Results



    TORONTO, Aug. 30 /CNW/ - 01 Communique Laboratory Inc. (TSX:ONE) today
announced results for its third quarter fiscal 2007, which ended July 31st
2007.
    Revenue for the third quarter was $143,845 with an operating loss of
$822,314 or $0.02 per share compared to revenue of $89,324 with an operating
loss of $419,691 or $0.01 per share for the third quarter fiscal 2006. On a
year to date basis revenue was $404,002 with an operating loss of $1,647,918
or $0.04 per share compared to revenue of $414,285 with an operating loss of
$1,118,304 or $0.03 per share for the same period in fiscal 2006. We completed
the quarter with $3,319,031 cash on hand.
    "We have spent 10 years and millions of dollars building a specific
technology in remote access," said Andrew Cheung President and CEO for 01
Communique. "Our technology makes remote access to a PC over the Internet very
easy. All you require is a web browser. You do not need to reconfigure or open
ports in your firewall nor do you need to know your IP address. It installs in
minutes and does not require any IT involvement. This is the foundation of the
patent that we believe very strongly is being infringed by Citrix and their
GoToMyPC product offering. Their product is built using the same technology as
that incorporated in our I'm InTouch product line for which we have a patent.
We are enforcing our patent to defend our future."

    
    Highlights of Operations:

    -   Expenses for the quarter - Results for the third quarter included
        expenses of $435,217 pertaining to 01's patent litigation against
        Citrix Systems Inc. (CTXS:NSDQ). 01's loss from operations for the
        quarter excluding patent litigation expenses was $387,097 compared to
        $374,107 for the same period in 2006. The vast majority of litigation
        expenses pertained to costs associated with expert witnesses, which
        included the costs of our financial damages experts for preparation
        of the damages report that will be relied on at trial and our
        technical experts for their on-going input on all technology related
        matters.

    -   Financial Highlights - We completed the period with cash of
        $3,319,031 a decrease of $309,657 for the quarter. Cash was used to
        fund operations in the amount of $429,358 net of a change in non-cash
        working capital of $269,490 and a non-cash charge to operating
        results for stock-based compensation of $116,286. There was a
        $125,978 source of cash for the issuance of common shares from
        options about to expire exercised by former directors.
        The cash expenses to run our business excluding litigation expenses
        for the next two quarters is expected to be approximately $425,000
        per quarter. Our portion of litigation expenses, which is in
        addition, is expected to be less than $175,000 over this 6-month
        period.

    -   Hitachi Business Solution "Hitachi" - Hitachi has exclusive rights in
        Japan to market an extremely secure enterprise-level remote access
        solution built using our technology, called DoMobile-CSE.
        Incorporating our technology with Hitachi's Servers, Secure Notebooks
        and Security Keys provides a turn-key solution, which in essence
        "virtualizes the desktop PC".
        "We have a strong partner in Hitachi who is actively marketing
        DoMobile-CSE in Japan," said Andrew Cheung. "We are providing support
        as requested as we wait for results from their sales activities."

    -   Citrix Litigation - The lawsuit was initiated in February, 2006.
        -  On March 16, 2007 the Court issued a patent claim construction
           ruling adopting the Company's claim construction for 19 of the 20
           disputed claim terms (commonly referred to as the Markman Ruling).
        -  The deadline for Fact Discovery and Citrix's identification of
           prior art closed on July 12th.
        -  Initial Expert Reports were filed on August 3rd and the Rebuttals
           were filed on August 24th.
        -  Close of Expert Discovery is September 14th.
        -  Dispositive Motions (Summary Judgment Motions) are due
           October 19th leading up to trial.
        -  Trial by Jury is currently scheduled to commence January 28, 2008
           in the United States District Court Northern District of Ohio
           Eastern Division.
        "We are very confident in the merits of our case," said Andrew
        Cheung. "Citrix has used our technology to great benefit. This is a
        simple case of infringement and we want them to stop infringing on
        our patent. We are seeking treble damages for willful infringement
        and an injunction. We look forward to proving our case at trial in
        January which is only 5 months away."
    

    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.

    
                   SELECTED UNAUDITED FINANCIAL INFORMATION
                         Consolidated Balance Sheets
                     July 31, 2007 and October 31, 2006

    Balance Sheet
                                                     July 31,      Oct. 31,
                                                       2007          2006
                                                  ------------- -------------
    Assets
    Current assets
      Cash and cash equivalents                   $  3,319,031  $    559,558
      Accounts receivable                              111,201       154,146
      Inventory                                         10,085        15,109
      Prepaid expenses and deposits                     31,007        15,793
                                                  ------------- -------------
                                                     3,471,324       744,606

    Capital assets                                      22,405        37,110
                                                  ------------- -------------
                                                  $  3,493,729  $    781,716
                                                  ------------- -------------
                                                  ------------- -------------

    Liabilities & Shareholders' Equity

    Current liabilities
      Accounts payable & accruals                 $    438,420  $    290,697
      Deferred revenue                                 106,089       106,302
                                                  ------------- -------------
                                                       544,509       396,999

    Liability portion of debenture                           -       450,111

    Shareholders' equity
      Share capital                                 30,293,253    26,068,445
      Contributed surplus                              527,217       343,734
      Equity portion of debenture                            -        69,089
      Share purchase warrants                           30,995        20,195
      Agent options                                    339,674        27,144
      Deficit                                      (28,241,919)  (26,594,001)
                                                  ------------- -------------
                                                     2,949,220       (65,394)
                                                  ------------- -------------
                                                  $  3,493,729  $    781,716
                                                  ------------- -------------
                                                  ------------- -------------



                   SELECTED UNAUDITED FINANCIAL INFORMATION
             Consolidated Statements of - Operations and Deficit
         For the 3 and 9 month periods ended July 31, 2007 and 2006

                         July 31,      July 31,
                           2007          2006        YTD 2007      YTD 2006
                      ------------- ------------- ------------- -------------

    Revenue           $    143,845  $     89,324  $    404,002  $    414,285
    Cost of revenue          3,116         1,886        29,090         5,737
                      ------------- ------------- ------------- -------------
                           140,729        87,438       374,912       408,548

    Expenses
    Selling, general
     and administrative    333,307       256,320       801,155       866,660
    Patent litigation
     expenses              435,217        45,584       577,308        53,262
    Research and
     development           188,590       174,951       528,322       539,329
    Interest expense
     (income)               (1,251)         (268)      (14,143)       (5,177)
    Depreciation and
     amortization            7,180         6,963        21,678        20,889
                      ------------- ------------- ------------- -------------
                           963,043       483,550     1,914,320     1,474,963
                      ------------- ------------- ------------- -------------

    Loss before
     interest &
     accretion on
     liability
     component of
     debenture            (822,314)     (396,112)   (1,539,408)   (1,066,415)

    Debenture
     settlement expense          -             -        72,069             -
    Accretion on
     liability
     component                   -         6,912         8,306        18,127
    Interest expense             -        16,667        28,135        33,762

    Loss before
     non-controlling
     interest             (822,314)     (419,691)   (1,647,918)   (1,118,304)

    Non-controlling
     interest                    -             -             -       171,591

    Transfer of CSE
     from limited
     partnership                 -             -             -    (1,155,000)

                      ------------- ------------- ------------- -------------
    Net loss and
     comprehensive loss   (822,314)     (419,691)   (1,647,918)   (2,101,713)
                      ------------- ------------- ------------- -------------

    Deficit, beginning
     of period         (27,419,605)  (25,736,353)  (26,594,001)  (24,054,331)

                      ------------- ------------- ------------- -------------
    Deficit, end of
     period           $(28,241,919) $(26,156,044) $(28,241,919) $(26,156,044)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Loss per common
     share
      Basic           $      (0.02) $      (0.01) $      (0.04) $      (0.05)
      Diluted         $      (0.02) $      (0.01) $      (0.04) $      (0.05)

    Weighted ave.
     number of common
     shares outstanding
      Basic             50,336,818    39,417,707    45,487,707    38,574,374
      Diluted           57,006,318    43,751,374    51,437,374    42,111,418



                   SELECTED UNAUDITED FINANCIAL INFORMATION
                    Consolidated Statements of Cash Flows
         For the 3 and 9 month periods ended July 31, 2007 and 2006

                         July 31,      July 31,
                           2007          2006        YTD 2007      YTD 2006
                      ------------- ------------- ------------- -------------
    Cash provided by
     (used in):

    Operating activities:
      Loss for the
       period             (822,314)     (419,691)   (1,647,918)   (2,101,713)
      Items not
       involving cash:
        Non-controlling
         interest                -             -             -      (171,591)
        Depreciation and
         amortization        7,180         6,963        21,678        20,889
        Accretion on
         liability
         component of
         debenture               -         6,912         8,306        18,127
        Non-cash portion
         of Debenture
         settlement
         expense                 -             -         9,569             -
        Stock-based
         compensation      116,286        12,500       146,408        42,400
        Transfer of CSE
         from limited
         partner                 -             -             -     1,155,000
        Change in
         non-cash
         working capital   269,490       113,384       180,266        81,645
                      ------------- ------------- ------------- -------------
                          (429,358)     (279,932)   (1,281,691)     (955,243)

    Financing
     activities:
      Issue of common
       shares              125,978       709,680     4,548,138       712,380
      Issue of debenture         -             -             -       500,000
                      ------------- ------------- ------------- -------------
                           125,978       709,680     4,548,138     1,212,380

    Investing
     activities:
      Purchase of
       capital assets       (6,277)       (1,765)       (6,974)       (1,765)
      Redemption of
       debenture                 -             -      (500,000)            -

    Increase (decrease)
     in cash              (309,657)      427,983     2,759,473       255,372

    Cash, beginning of
     period              3,628,688       479,382       559,558       651,993
                      ------------- ------------- ------------- -------------
    Cash, end of
     period           $  3,319,031  $    907,365  $  3,319,031  $    907,365
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------
    

    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).





For further information:

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


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