TORONTO, Sept. 5, 2013 /CNW/ - 01 Communique Laboratory
Inc. (ONE:TSX) today announced results for its third quarter 2013
which ended July 31, 2013. The loss
for the third quarter 2013 was $584,941 compared to $697,693 in 2012 a decrease of $112,852. Excluding non-cash expenses for
stock-based compensation and depreciation the adjusted loss for the
third quarter 2013 was $235,187
compared to $271,456 in 2012. The
Company completed the quarter with $3,566,150 of cash and cash equivalents.
"The cash operating expenses to run our
business, excluding the costs associated with intellectual property
revenue, were reduced for the third quarter to approximately
$400,000," said Andrew Cheung, President and CEO for 01
Communique. "Reducing expenses to this level still allowed us to
continue with development of a competitive product offering and
continue to vigorously defend our intellectual property rights
against LogMeIn Inc. and Citrix Systems Inc. Going forward, we will
continue with these two main objectives."
Citrix Litigation Update -
On May 8, 2013 a hearing took place
in front of the United States Patent and Trademark Office's
("USPTO") Patent Trial and Appeal Board ("PTAB") in respect of the
Citrix Systems Inc. ("Citrix") appeal of the results of the inter
partes re-examination of our United
States patent number 6,928,479 ("'479 Patent") which Citrix
had requested. We are now waiting for the PTAB to render
their written report. We are confident in the merits of our case
and believe the PTAB will uphold the validity of the '479 Patent.
Previously the jury in the LogMeIn lawsuit upheld the validity of
the 479 Patent as did the USPTO patent examiner in the Right of
Appeal Notice ("RAN") and the Examiner's Report filed last year as
part of the appeal process.
LogMeIn Appeal Update -
We disagree with the jury's finding of non-infringement in the
LogMeIn Inc. ("LogMeIn") case and, as previously announced, on
June 26, 2013 we filed a notice of
appeal with the United States
Court of Appeal for the Federal Circuit (Appeal Nos. 2013-1479).
LogMeIn has filed a cross appeal, (Case No. 2013-1525) in respect
of the Court Order concluding that our patent was valid and
enforceable. Their cross appeal has been consolidated with our
appeal. As part of the appeal process we filed our Appeal Brief
with the Federal Circuit on August 26,
2013. We are confident in the merits of our appeal.
Financial Highlights -
- Revenue for the third quarter 2013 was $729,860 compared to $582,440 for the same period in 2012, an increase
of $147,420 primarily a result of
increased revenue from licensing intellectual property. Revenue
from intellectual property for the third quarter 2013 was
$669,500 (2012 - $500,000).
- Cash operating expenses which exclude stock-based compensation
and depreciation were $965,254 for
the third quarter 2013 compared to $857,185 in 2012 an increase of $108,069 primarily a result of an increase in
expenses relating to intellectual property revenue.
- Excluding expenses related to intellectual property revenue of
$568,442 (2012 - $425,000), cash operating expenses for the third
quarter 2013 were $396,812 compared
to 2012 of $432,185 a reduction of
$35,373.
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 |
Consolidated Statements of
Financial Position |
|
|
|
|
31-Jul-13 |
31-Oct-12 |
|
|
|
Assets |
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 3,566,150 |
$ 4,547,375 |
|
Accounts receivable |
41,837 |
282,981 |
|
Prepaid expenses and other assets |
69,080 |
35,676 |
|
3,677,067 |
4,866,032 |
|
|
|
Property and equipment |
17,961 |
17,261 |
|
$ 3,695,028 |
$
4,883,293 |
|
|
|
Liabilities and Shareholders'
Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ 1,117,028 |
$ 407,770 |
|
Deferred revenue |
25,916 |
34,596 |
|
1,142,944 |
442,366 |
|
|
|
Shareholders' equity: |
|
|
|
Share capital |
39,997,277 |
39,566,407 |
|
Contributed surplus |
4,384,066 |
3,752,710 |
|
Agent options |
111,780 |
248,400 |
|
Deficit |
(41,941,039) |
(39,126,590) |
|
2,552,084 |
4,440,927 |
|
$ 3,695,028 |
$
4,883,293 |
01 Communique Laboratory
Inc. |
SELECTED FINANCIAL
INFORMATION |
Consolidated Statements of
Operations and Comprehensive Income |
For the 3 and 9 month periods
ended July 31, 2013 and 2012 |
|
|
for the 3 months ending |
|
for the 9 months ending |
|
31-Jul-13 |
31-Jul-12 |
|
31-Jul-13 |
31-Jul-12 |
Revenue |
$729,860 |
$582,440 |
|
$1,096,299 |
$753,812 |
Cost of revenue |
- |
38 |
|
- |
261 |
|
729,860 |
582,402 |
|
1,096,299 |
753,551 |
|
|
|
|
|
|
Expenses (income) |
|
|
|
|
|
Selling, general and administrative |
530,394 |
614,430 |
|
1,306,409 |
1,622,145 |
Patent enforcement & re-examination
expenses |
568,442 |
425,000 |
|
1,965,542 |
425,000 |
Research and development |
216,172 |
244,092 |
|
657,864 |
737,567 |
Interest |
(207) |
(3,327) |
|
(19,067) |
(12,221) |
|
1,314,801 |
1,280,195 |
|
3,910,748 |
2,772,491 |
|
|
|
|
|
|
Loss for the period and comprehensive loss |
(584,941) |
(697,793) |
|
(2,814,449) |
(2,018,940) |
|
|
|
|
|
|
Loss per common share |
|
|
|
|
|
Basic |
$
(0.009) |
$ (0.012) |
|
$ (0.043) |
$ (0.033) |
Diluted |
$
(0.009) |
$ (0.012) |
|
$ (0.043) |
$ (0.033) |
|
|
|
|
|
|
Weighted average number of common shares |
|
|
|
|
|
Basic |
65,203,807 |
60,636,502 |
|
65,080,948 |
60,428,803 |
Diluted |
65,203,807 |
60,636,502 |
|
65,080,948 |
60,428,803 |
01 Communique Laboratory
Inc. |
SELECTED FINANCIAL
INFORMATION |
Consolidated Statements of Cash
Flows |
For the 3 and 9 month periods
ended July 31, 2013 and 2012 |
|
|
|
|
|
|
|
three months ending |
|
|
nine months ending |
|
|
31-Jul-13 |
31-Jul-12 |
|
31-Jul-13 |
31-Jul-12 |
Cash provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
Operating activities: |
|
|
|
|
|
Loss for the period |
$ (584,941) |
$ (697,793) |
|
$ (2,814,449) |
$ (2,018,940) |
Adjustments to reconcile the loss
for the period to net cash flows from |
|
|
|
|
|
operating activities: |
|
|
|
|
|
Depreciation |
1,754 |
1,538 |
|
5,657 |
7,099 |
Stock-based compensation |
348,000 |
424,799 |
|
631,356 |
925,507 |
Interest income |
(207) |
(3,327) |
|
(19,067) |
(12,221) |
Change in non-cash working capital |
(1,303) |
87,633 |
|
908,318 |
(217,898) |
|
(236,697) |
(187,150) |
|
(1,288,185) |
(1,316,453) |
Interest income received |
207 |
3,327 |
|
19,067 |
12,221 |
|
(236,490) |
(183,823) |
|
(1,269,118) |
(1,304,232) |
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
Issue of common shares |
- |
275,450 |
|
294,250 |
375,450 |
Investing activities: |
|
|
|
|
|
Purchase of capital assets |
(572) |
(665) |
|
(6,357) |
(1,455) |
Increase (decrease) in cash |
(237,062) |
90,962 |
|
(981,225) |
(930,237) |
|
|
|
|
|
|
Cash and cash equivalents, beginning of
period |
3,803,212 |
2,100,218 |
|
4,547,375 |
3,121,417 |
Cash and cash equivalents, end of period |
$ 3,566,150 |
$ 2,191,180 |
|
$
3,566,150 |
$ 2,191,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE 01 Communique Laboratory Inc.