TORONTO, June 14, 2011 /CNW/ -- TORONTO, June 14, 2011 /CNW/ - 01
Communique Laboratory Inc. (TSX:ONE) today announced results for
its second quarter fiscal 2011, which ended April 30th. Revenue for
the quarter was $148,695 compared to $108,127 for the same period
in 2010. The loss for the quarter was $1,029,026 compared to a loss
of $320,753 for the same period in 2010. Excluding the costs
associated with preparation for the LogMeIn trial and stock based
compensation the adjusted loss for the second quarter 2011 was
$416,686. We completed the period with $3,840,647 of cash and cash
equivalents on hand. "We are moving forward on all fronts to build
revenue from our products and from those companies that we believe
are using our intellectual property to compete against us," said
Andrew Cheung, President and CEO for 01. "We recently launched a
Channel Partner Program and I am encouraged by the feedback we have
received to date from prospective partners. To assist us in
protecting our intellectual property rights we recently signed an
agreement with WiLAN Inc. ("WiLAN"), a company that has
demonstrated superior licensing capabilities. With WiLAN's proven
track record and its strong financial position they are the ideal
choice for us to help maximize the revenue that we anticipate can
be generated from our patented technology. In addition to these
recent initiatives we are pushing forward and remain confident in
the merits of our appeal in the LogMeIn lawsuit. We are waiting for
the judge's decision with respect to lifting the stay in the Citrix
lawsuit and then look forward to proceeding to trial." An update on
these initiatives and our financial results follows. Financial
Highlights - -- The second quarter loss of $1,029,026 includes
$497,340 of patent litigation and re-examination costs ("litigation
costs"), and $105,000 of stock based compensation a non-cash
expense. Excluding these costs the adjusted loss for the second
quarter was $416,686. The litigation costs pertained to expenses
incurred by us as we prepared for trial with LogMeIn. -- Expenses
for the second quarter excluding stock based compensation and
litigation costs were $575,312. Litigation costs are expected to be
nominal for the third quarter. We continue to monitor expenses very
closely and expect them to be approximately $500,000 for the third
quarter 2011, excluding the non-cash charge for stock based
compensation. -- Cash and cash equivalents were $3,840,647 as at
April 30, 2011 compared to $4,726,881 as at January 31, 2011
representing a decrease of $886,234. This decrease is a result of
cash being used to fund the adjusted operating loss of $940,588.
This being the loss for the period of $1,029,026 adjusted for
non-cash items being depreciation of $3,213 and stock based
compensation of $105,000 and a decrease in non-cash working capital
of $19,775. Cash of $57,500 was provided by the issuance of common
shares from exercising of stock options. Corporate Update - --
Building revenue from the channel. We launched a Channel Partner
Program aimed at companies with a customer base that would be
attracted to our suite of Software as a Service ("SaaS") offerings.
We are encouraged by the response from potential partners and our
plan is to continue to pursue these opportunities. -- Protecting
our Company's Intellectual Property. The remote access, remote
support and online meeting markets are large and growing and our
intellectual property covers all three markets. A number of
companies have been identified, in addition to Citrix and LogMeIn,
that we believe infringe the 479 Patent even under the presently
narrow application from the LogMeIn case, which we disagree with
and have appealed. On June 10, 2011 we entered into an agreement
with WiLAN Inc. whereby WiLAN will assist us in developing and
executing a licensing strategy against a number of such companies
that we believe are using the technology covered by our patents to
compete against us. WiLAN is responsible for all costs associated
with implementing the licensing strategy, which include all costs
associated with litigation should litigation be required to enforce
our intellectual property rights against these companies with such
costs being reimbursed from licensing proceeds. We pay WiLAN a fee
if there are any amounts collected from these companies with
respect to our patents. The fee will be a percentage of any such
amounts received, net of costs incurred by WiLAN, with such
percentage being in the range which we believe is customary for an
agreement of this type. Update on Current litigation - -- Patent
lawsuit against LogMeIn alleging infringement of U.S. Patent No.
6,928,479 ("the 479 Patent"). The patent lawsuit against LogMeIn in
the Eastern District of Virginia was filed in September 2010. On
April 1, 2011 the judge granted LogMeIn's summary judgment motion
for non-infringement and removed the case from the court's trial
calendar. We have appealed that judgment to the United States Court
of Appeals for the Federal Circuit. We expect the process of the
Appeal to be generally as follows - the Court docket our Notice of
Appeal on May 26, 2011 following which we have 60 days to file our
appeal brief, LogMeIn will then have 40 days to file their
opposition brief. Our reply brief will be due 14 days after LogMeIn
files its opposition brief. After all briefs are filed there is an
oral argument in front of a panel of judges (estimated to be
scheduled about 7 to 8 months from the date the appeal docket
date), after which we wait for the Court of Appeals to render its
decision. While we are confident in the merits of our appeal there
can be no guarantee that we will be successful in the appeal. --
Patent lawsuit against Citrix alleging infringement of the 479
Patent. We filed a patent lawsuit against Citrix in February, 2006
in the Northern District of Ohio. On March 12, 2008 the judge in
the case issued a memorandum and order staying the case pending
completion of an inter partes re-examination of the claims
underlying the Patent in the case, which was requested by Citrix.
In July, 2010 the United States Patent and Trademark Office
("USPTO") issued a Right of Appeal Notice ("RAN") finding that all
of the claims in the inter partes re-examination are patentable.
Citrix appealed the decision to the USPTO's Board of Patent Appeals
and Inferences ("BPAI"). That appeal is still in process. With the
RAN issued we have requested that the Judge in the case, Judge
Lioi, lift the stay and proceed to trial. We are waiting for the
Court's decision on the matter. We are seeking past damages, which
go back to the patent issue date in August 2005 as well as a
permanent injunction against both Citrix and LogMeIn prohibiting
infringement of the 479 Patent. In addition, we allege Citrix and
LogMeIn are willfully infringing the patent. While we are confident
in the merits of both cases, there can be no assurance that we will
be successful in our litigation. 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 (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. For
more information, visit www.01com.com or call (905) 795-2888 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 Consolidated Balance
Sheets (Unaudited) April 30, 2011 and October 31, 2010 30-Apr-11
31-Oct-10 Assets Current assets Cash and cash equivalents $
3,840,647 $ 4,869,398 Accounts receivable 131,250 191,545 Prepaid
expenses and other assets 71,586 33,255 4,043,483 5,094,198 Capital
assets 25,762 28,758 $ 4,069,245 $ 5,122,956 Liabilities &
Shareholders' Equity Current liabilities Accounts payable &
accruals $ 699,742 $ 480,688 Deferred revenue 52,922 68,646 752,664
549,334 Shareholders' equity Share capital 36,198,236 35,434,092
Contributed surplus 1,727,046 1,591,796 Share purchase warrants
58,743 70,491 Agent options 95,241 380,965 Deficit (34,762,684)
(32,903,722) 3,316,581 4,573,622 $ 4,069,245 $ 5,122,956 01
Communique Laboratory Inc. SELECTED FINANCIAL INFORMATION
Consolidated Statements of Operations and Comprehensive Income
(Unaudited) For the 3 and 6 month periods ended April 30, 2011 and
2010 3 months 6 months ending ending 30-Apr-11 30-Apr-10 30-Apr-11
30-Apr-10 Revenue $ 148,695 $ 108,127 $ 283,960 $ 183,162 Cost of
69 576 261 1,268 revenue 148,626 107,551 283,699 181,894 Expenses
(income) Selling, 417,316 206,092 709,584 504,308 general and
administrative Patent 497,340 - 940,293 - enforcement &
re-examination expenses Research and 267,989 170,010 503,342
351,596 development Interest (8,206) 2,457 (17,509) 2,273 expense
(income) Depreciation 3,213 3,127 6,951 6,466 and amortization
1,177,652 381,686 2,142,661 864,643 Loss before (1,029,026)
(274,135) (1,858,962) (682,749) interest and accretion on liability
component of debenture Interest on - 38,581 - 45,000 debenture
Accretion on - 8,037 - 9,755 liability component of debenture Loss
for the $ (1,029,026) $ (320,753) $ (1,858,962) $ (737,504) period
and comprehensive loss Loss per common share Basic (0.017) (0.006)
(0.031) (0.014) Diluted (0.017) (0.006) (0.031) (0.014) Weighted
average number of common shares Basic 60,625,864 51,406,007
59,823,670 51,404,757 Diluted 60,625,864 51,406,007 59,823,670
51,404,757 01 Communique Laboratory Inc. SELECTED FINANCIAL
INFORMATION Consolidated Statements of Cash Flows (Unaudited) For
the 3 and 6 month periods ended April 30, 2011 and 2010 3 months 6
months ending ending 30-Apr-11 30-Apr-10 30-Apr-11 30-Apr-10 Cash
provided by (used in): Operating activities: Loss for the $
(1,029,026) $ (320,753) $ (1,858,962) $ (737,504) period Items not
involving cash: Depreciation 3,213 3,127 6,951 6,466 and
amortization Accretion of - 8,037 - 9,755 liability portion of
debenture Stock-based 105,000 37,821 135,250 122,642 compensation
Change in (19,775) (82,436) 225,294 (105,094) non-cash working
capital (940,588) (354,204) (1,491,467) (703,735) Financing
activities: Issue of - - - 1,200,000 debenture Issue of 57,500 900
466,671 900 common shares Investing activities: Purchase of (3,146)
(369) (3,955) (369) capital assets Increase (886,234) (353,673)
(1,028,751) 496,796 (decrease) in cash Cash and cash 4,726,881
1,772,560 4,869,398 922,091 equivalents, beginning of period Cash
and cash $ 3,840,647 $ 1,418,887 $ 3,840,647 $ 1,418,887
equivalents, end of period To
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bINVESTOR CONTACT:/bbr/ Brian Stringerbr/ Chief Financial
Officerbr/ 01 Communiquebr/ (905) 795-2888 x204br/ a
href="mailto:brian.stringer@01com.com"brian.stringer@01com.com/a /p
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