TORONTO, Sept. 7, 2012 /CNW/ - 01 Communique Laboratory Inc. (TSX: ONE) today announced results for its third quarter fiscal 2012, which ended July 31, 2012. Revenue for the quarter was $582,440 ($41,464 in 2011) with a loss of $697,793 ($953,340 in 2011). The adjusted loss for the third quarter 2012 was $271,456 ($654,033 in 2011) which is the loss reported under IFRS excluding our non-cash expenses. We completed the quarter with $2,191,180 of cash and cash equivalents.
"We have had a number of key developments take place during and subsequent to the third quarter," said Andrew Cheung, President and CEO for 01 Communique. "We received a positive decision in our appeal to the United States Court of Appeals for the Federal Circuit with respect to our litigation with LogMeIn Inc. ("LogMeIn") and are now waiting for the district court to set a trial date. We completed our first licensing agreement in the remote support market with our partner, Wi-LAN Inc. ("WiLAN") (TSX:WIN) (NASD:WILN), and received the first payment. With respect to our lawsuit with Citrix Systems Inc. ("Citrix") and their appeal to the United States Patent and Trademark Office's ("USPTO") Board of Patent Appeals and Interferences, in August 2012 the USPTO Examiner filed the Examiner's Answer to Citrix's Appeal brief affirming his positions in the Right of Appeal Notice which had confirmed the patentability of the claims in our patent that were challenged by Citrix. We expect this appeal to continue forward to a decision. We have written to the Court advising them of the Examiner's Answer as well as the recent decision in the LogMeIn lawsuit and requested that the stay be lifted so the case can proceed to trial. We are waiting for the Court to render a decision on this request. Also, on August 31, 2012 we completed a bought deal financing in which we raised gross proceeds of $3,450,000 and believe that combined with the cash we have on hand there is sufficient cash available to fund operations for the foreseeable future."
- The loss for the third quarter 2012 was $697,793 compared to $953,340 for the third quarter 2011 representing a decrease of $255,547.
- After adding back non-cash expenses for depreciation and amortization of $1,538 ($2,949 in 2011) and stock based compensation of $424,799 ($296,358 in 2011) the adjusted loss becomes $271,456 ($654,033 in 2011) a decrease of $382,577.
- The decrease in the adjusted loss for the third quarter is due primarily to the profitable results achieved from our partnership with WiLAN in completing a licensing agreement; an increase in contract services revenue in Japan and a reduction in patent litigation and re-examination expenses for our lawsuit against LogMeIn. In 2012 there have been no expenses incurred for the LogMeIn lawsuit whereas in the third quarter 2011 we incurred expenses of $227,529.
- For the fourth quarter 2012 we expect our operating expenses excluding non-cash expenses and patent enforcement and re-examination expenses to be approximately $475,000. We are now preparing for trial in our lawsuit against LogMeIn and expect to incur additional expenses.
- On August 31, 2012, we completed a financing raising $3,450,000 gross proceeds. The net proceeds from the offering are expected to be approximately $2,958,500 which combined with the cash and cash equivalents at July 31, 2012 of $2,191,180 would give us $5,149,680 of cash and cash equivalents.
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
Interim Consolidated Statements of Financial Position
|Cash and cash equivalents||$||2,191,180||$||3,121,417|
|Prepaid expenses and other assets||54,630||36,844|
|Property and equipment||15,680||21,324|
|Liabilities & Shareholders' Equity|
|Accounts payable & accrued liabilities||$||643,008||$||909,508|
|Share purchase warrants||---||58,742|
01 Communique Laboratory Inc.
|for the 3 months ending||for the 9 months ending|
|Cost of revenue||38||144||261||405|
|Selling, general and administrative||614,430||532,757||1,622,145||1,501,689|
|Patent litigation & re-examination expenses||425,000||227,529||425,000||1,167,822|
|Research and development||244,092||239,556||737,567||742,898|
|Loss for the period and comprehensive loss||$||(697,793)||$||(953,340)||$||(2,018,940)||$||(3,064,699)|
|Loss per common share|
|Weighted average number of common shares|
01 Communique Laboratory Inc.
|three months ending||nine months ending|
|Cash provided by (used in):|
|Loss for the period||$||(697,793)||$||(953,340)||$||(2,018,940)||$||(3,064,699)|
| Adjustments to reconcile loss for the period
to net cash flows from operating activities:
|Change in non-cash working capital||87,633||335,282||(217,898)||560,576|
|Interest income received||3,327||5,182||12,221||22,691|
|Issue of common shares||275,450||3,450||375,450||470,121|
|Purchase of capital assets||(665)||-||(1,455)||(3,955)|
|Increase (decrease) in cash||90,962||(315,301)||(930,237)||(1,344,052)|
|Cash and cash equivalents, beginning of period||2,100,218||3,840,647||3,121,417||4,869,398|
|Cash and cash equivalents, end of period||$||2,191,180||$||3,525,346||$||2,191,180||$||3,525,346|
SOURCE: 01 Communique Laboratory Inc.
For further information:
Chief Financial Officer
(905) 795-2888 x204