01 Communique Reports First Quarter Fiscal 2015 Results

TORONTO, March 5, 2015 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX-V) today announced results for its first quarter fiscal 2015, which ended January 31, 2015. The loss and comprehensive loss for the first quarter 2015 was $391,799 (2014 - $399,367). The adjusted loss, which excludes non-cash expenses for stock-based compensation and depreciation, for first quarter 2015 was $344,917 (2014 - $350,066). The Company completed the quarter with $851,466 of cash and cash equivalents.   

"The first and foremost goal for us during the past year was to get ready for trial for our patent lawsuit against Citrix," said Andrew Cheung, President and CEO for 01 Communique. "During the first quarter our results reflected our emphasis on this aspect of our business with the curtailing of operating expenses in the sales and marketing area and general and administrative expenses. We plan to continue with the current level of operating expenses for the second quarter. With respect to the case, we have completed expert discovery and are waiting for the Court's claim construction finding after which we expect a scheduling conference to set a trial date. We look forward to our day in court."

An update on the Company's patent lawsuit against Citrix Systems Inc. ("Citrix") follows.  

The Company is protecting its intellectual property against Citrix's GoToMyPC product offering. The Company is seeking damages based upon a reasonable royalty, back to August 2005 the date the patent was issued, for infringement, as well as pre and post judgment interest on awarded damages; treble damages for willful infringement, a permanent injunction and attorneys' fees. An overview of recent events and timelines to get to trial follows.

The inter partes re-examination. On October 16, 2014 the United States Court of Appeal for the Federal Circuit ("Federal Circuit") rendered their decision affirming the United States Patent and Trademark Office`s ("USPTO") Patent Trial and Appeals Board decision that the Company`s patent 6,928,479 (" '479 Patent") is valid and on November 25, 2014 the Federal Circuit issued their mandate to the USPTO to issue a re-examination certificate.

The Claim Construction Hearing. A claim construction tutorial and hearing took place on November 12 and 13, 2014. We are now waiting for the Court's findings.

The timetable. Expert discovery was completed on February 27, 2015. Following the Court's findings on the November 13, 2014 Claim Construction Hearing we expect a scheduling conference will take place to set dates regarding filing and/or renewing dispositive motions, trial preparation and trial.

An update on financial results follows.

1. Operating expenses for first quarter 2015 were $403,480 (2014 - $474,973). Excluding non-cash expenses for stock based compensation of $45,084 (2014 - $46,950) and depreciation of $1,798 (2014 - $2,351), as well as patent litigation and re-examination costs of $6,658 (2014 - $11,180) the cash operating expenses to fund operations for first quarter 2015 were $349,940 (2014 - $414,492), a reduction of $64,552. Much of this reduction is a result of a reduction in compensation related expenses.     
   
   
2. The loss and comprehensive loss for first quarter 2015 was $391,799 (2014 - $399,367). Excluding non-cash expenses for stock-based compensation and depreciation, the adjusted loss for the first quarter 2015 was $344,917 (2014 - $350,066).  
   
   
3. Revenue for the first quarter 2015 was $11,108 (2014 - $74,923). The majority of this decrease is a result of a reduction in contract engineering fees.  
   
   
4. Patent litigation and re-examination expenses were $6,658 for the first quarter 2015 (2014 -$11,180). These expenses fluctuate with the level of activity in respect of patent litigation as well as the re-examination requested by Citrix. With respect to the re-examination now that the Federal Circuit has rendered their decision affirming the PTAB's decision that the '479 Patent is valid it is not expected that there will be any further significant expenses. With respect to the Citrix litigation, expenses have reached a cap and the Company's lawyers are now responsible for such expenses for which they are to be reimbursed out of proceeds of settlement or an award of damages, if any.
   
   
5. Cash and cash equivalents were $851,466 as at January 31, 2015 compared to $1,370,813 as at October 31, 2014 a decrease of $519,347 for the first quarter 2015. This decrease is primarily a result of funding the adjusted loss of $338,259 as well as a decrease in accounts payable and accrued liabilities of $103,148 and an increase in prepaid expenses of $51,716.

Neither TSX Venture Exchange ("TSX-V") nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About 01 Communique
Established in 1992, 01 Communique Laboratory Inc. (TSX-V: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 #6,928,479 / #6,938,076 / #8,234,701 and in  Canada by its patents #2,309,398 / #2,524,039 and Japan by its patent #4,875,094. For more information, visit www.01com.com or call (905) 795-888 or [phone] (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 Unaudited
		31-Jan-15		31-Oct-14
Assets
Current assets
	Cash and cash equivalents	$	851,466	$	1,370,813
	Accounts receivable	122,163		105,551
	Prepaid expenses and other assets	87,654		35,938
		1,061,283		1,512,302
Capital assets		11,432		12,549
		$	1,072,715	$	1,524,851
Liabilities and Shareholders' Equity
Current liabilities
	Accounts payable and accruals	$	608,531	$	711,679
	Deferred revenue	15,537		17,810
		624,068		729,489
Shareholders' equity
	Share capital	40,288,777		40,288,777
	Contributed surplus	4,923,671		4,878,587
	Deficit	(44,763,801)		(44,372,002)
		448,647		795,362
		$	1,072,715	$	1,524,851

01 Communique Laboratory Inc.      SELECTED FINANCIAL INFORMATION Consolidated Statements of Operations and Comprehensive Income For the 3 month periods ended January 31, 2015 and 2014 Unaudited
	for the 3 months ending
	31-Jan-15		31-Jan-14
Revenue	$	11,108	$	74,923
Cost of revenue	-		-
	11,108		74,923
Expenses (income)
Selling, general and administrative	201,098		289,893
Patent litigation and re-examination expenses	6,658		11,180
Research and development	195,724		173,900
Interest	(573)		(683)
	402,907		474,290
Loss for the period and comprehensive loss	$	(391,799)	$	(399,367)
Loss per common share
Basic	$	(0.01)	$	(0.01)
Diluted	$	(0.01)	$	(0.01)
Weighted average number of common shares
Basic	65,743,807		65,203,807
Diluted	65,743,807		65,203,807

01 Communique Laboratory Inc. SELECTED FINANCIAL INFORMATION Consolidated Statements of Cash Flows For the 3 month periods ended January 31, 2015 and 2014 Unaudited
			three months ending
			31-Jan-15		31-Jan-14
Cash provided by (used in):
Operating activities:
	Loss for the period		$	(391,799)	$	(399,367)
	Adjustments to reconcile the loss for the period
	to net cash flows from operating activities
		Depreciation	1,798		2,351
		Stock-based compensation	45,084		46,950
		Interest income	(573)		(683)
	Change in non-cash working capital		(173,749)		(148,620)
			(519,239)		(499,369)
Interest income received			573		683
			(518,666)		(498,686)
Investing activities:
	Purchase of capital assets		(681)		-
Increase (decrease) in cash			(519,347)		(498,686)
Cash and cash equivalents, beginning of period			1,370,813		3,072,281
Cash and cash equivalents, end of period			$	851,466	$	2,573,595

SOURCE 01 Communique Laboratory Inc.

INVESTOR CONTACT: Brian Stringer, Chief Financial Officer, 01 Communique, [phone] x204, [email protected]