Diversinet Reports Second Quarter 2012 Financial Results

TORONTO, July 26, 2012 /CNW/ - Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF), a leader in secure mobile health that "Powers Care Coordination through Mobility," reported its second quarter 2012 results for the period ended June 30, 2012. All dollar amounts are in U.S. dollars.

Financial Highlights
Revenues for the second quarter of 2012 increased 217% to $419,000 from $132,000 in the same year-ago period. Revenues for the six months ended June 30, 2012 increased 22% to $701,000 from $576,000 in the same period in 2011.

Revenues in the second quarter of 2012 included $185,000 from the company's license and reseller agreement with Mihealth Global Systems and $75,000 from the University of Nebraska.

Net loss in the second quarter totalled $1.1 million or $(0.03) per share, improving from $1.7 million or $(0.04) per share in the same year ago period. Net loss for the six months ended June 30, 2012 was $2.6 million, or $(0.06) per share, improving from $2.8 million or $(0.07) per share in the first six months of 2011.

Cash and cash equivalents were $5.1 million at June 30, 2012 compared to $7.4 million at December 31, 2011.

Operational Highlights

  • Supported the roll-out of Janssen Healthcare Innovation's Care4TodayTM Mobile Adherence platform, a new patient-centered mobile website and app using Diversinet's MobiSecureR technology. The secure, two-way messaging platform reminds patients to take medications, refill prescriptions and keep medical appointments.

  • During the second quarter, the University of Nebraska expanded their virtual preoperative assessment initiative with Diversinet to include additional iterative rules and algorithm designs.

  • Received the 2012 CATA Alliance Award for Outstanding Product Achievement in Healthcare. The award recognizes outstanding technology engineering development that has resulted in the production of world-class, field-proven products.

  • Diversinet's CEO, Dr. Hon Pak, was interviewed by SearchHealthIT at the 2012 American Telemedicine Association conference. He shared his views on trends in telemedicine adoption, mHealth and EHR systems. A link to the interview is available at www.diversinet.com under the 'feature' section.

  • Subsequent to Q2 2012 Diversinet appointed Bret Jorgensen as chairman of the board succeeding Albert Wahbe, who has retired as chairman but remains a member of the board. Jorgensen brings more than 20 years of experience as a healthcare entrepreneur and corporate transformation executive to Diversinet.

"Our second quarter growth was the result of our renewed focus on creating, on behalf of our clients, more effective patient engagement and care coordination using our MobiSecure® technology," said Dr. Pak. "The improvement in revenue reflects the strong leverage in our model and the value we've created in our intellectual property.

"With MobiSecure, we are able to address the increasing demand by healthcare organizations for patient-centered mobile solutions that improve quality of care, reduce costs and provide critical security in a mobile environment. No other mHealth platform offers the security and feature-richness of MobiSecure, including its ability to securely connect to back-end servers and allow two-way communications or analysis of personal health information. Security features embedded in our platform include data encryption at rest and in transit, as well as patented mobile software anti-cloning protection. Altogether, there is not a more robust solution for delivering this type of patient care on the market today.

"Increasingly major organizations that deliver healthcare are beginning to take notice of this, as evidenced by our growing marquee customer list that now includes Janssen, U.S. Army, MiHealth, University of Nebraska, and others. We anticipate our gathering momentum to continue as we complete the second half 2012."

Financial Summary

         Q2 2012        Q2 2011
Revenues   $419,258   $132,108
Cost of revenues   64,934   30,744
Gross margin   354,324   101,364
  Research and development   702,828   734,971
  Sales and marketing   344,359   482,880
  General and administrative   444,635   559,605
  Depreciation   13,231   16,216
    1,505,053   1,793,672
Loss before the undernoted   (1,150,729)   (1,692,308)
Foreign exchange gain   453   4,673
Interest income   3,059   26
Loss for the period   $(1,147,217)   $(1,687,609)
Basic and diluted earnings (loss) per share   $(0.03)   $(0.04)
Cash and cash equivalents   $5,098,650   $9,790,920
Total assets   $5,539,210   $10,159,955
Total current liabilities   $749,699   $568,038
Total shareholders' equity   $4,789,511   $9,591,917
Weighted average basic and fully diluted common shares outstanding   43,179,333   42,503,921

For complete financial statements, including the notes and management's discussion and analysis, please visit our website at www.diversinet.com/FinancialReports.html.

About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) provides patented and proven secure products that enable healthcare organizations to rapidly deploy HIPAA-compliant mobile healthcare (mHealth) applications to power care coordination. Learn more about Diversinet at www.diversinet.com.

The Private Securities Litigation Reform Act of 1995 and Canadian securities laws provide a "safe harbour" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to the success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission available at www.sec.gov and Canadian securities regulatory authorities available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. MobiSecure is a registered trademark of Diversinet Corp.

SOURCE: Diversinet Corp.

For further information:

Company Contact 
Diversinet Corp. 
David Hackett 
Chief Financial Officer 
416-756-2324 ext. 275 

Investor Relations
Liolios Group, Inc.
Ron Both
Managing Director
949-574-3860 ext 1710

Organization Profile

Diversinet Corp.

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