TORONTO, March 13, 2014 /CNW/ - 01 Communique Laboratory
Inc. (ONE:TSX) today announced results for its first quarter 2014
which ended January 31, 2014. The
loss for the first quarter 2014 was $399,367 compared to a loss of $1,060,478 for the same period in 2013, a
decrease of $661,111. Excluding
non-cash expenses for stock-based compensation and depreciation the
adjusted loss for the first quarter 2014 was $350,066 (2013 - $875,548). The Company completed the quarter with
$2,573,595 of cash and cash
equivalents.
"It has been a long time coming; but now, after
almost six years during which we completed a successful
re-examination at the USPTO of our patent, the Court has lifted the
stay in our patent litigation against Citrix", said Andrew Cheung, President and CEO for 01
Communique. "As we move forward we plan to continue to monitor our
expenses closely and adjust them as we see necessary with the
primary goal of continuing in the defense of our intellectual
property and then to continue with our product development."
"As a testimony to the innovative nature of our
technology, our products continue to win awards," said Andrew Cheung. "In January 2014 Internet Telephony awarded our I'm
InTouch Meeting "Product of the Year" commenting that I'm InTouch
Meeting has proven to be among the best communications and
technology solutions on the market."
The Company currently has two patent lawsuits,
one against Citrix Systems Inc. ("Citrix") and the other against
LogMeIn Inc. ("LogMeIn").
Citrix Litigation -
On February 2, 2006, a lawsuit was
filed by the Company in the United States District Court, Northern
District of Ohio, Eastern
Division, against Citrix alleging infringement of our patent number
6928479 (the "'479 Patent"). As part of the litigation Citrix
requested an inter partes reexamination of the '479 Patent by
United States Patent and Trademark Office ("USPTO"), and also
requested a stay in the Court proceedings. The stay was granted by
the Judge in the case on March 12,
2008.
On March 16, 2007, prior to the stay
being implemented, the court issued a patent claim construction
ruling adopting the Company's claim construction for 19 of the 20
disputed claim terms (commonly referred to as a "Markman
Ruling").
On July 6, 2010 a Right of Appeal
Notice was issued by the USPTO confirming the patentability of the
'479 Patent. Citrix appealed that decision to the USPTO's Patent
Trial and Appeals Board ("PTAB").
On October 29, 2013 the PTAB rendered
their decision affirming the validity of the '479 Patent. The
appeal process is now complete at the USPTO. Citrix has appealed
that decision to the United States
Court of Appeal for the Federal Circuit and that appeal is now in
process. We are confident that we will prevail in this appeal as
well.
On February 28, 2014 a Court Order
was issued granting 01 Communique's motion to lift the stay and
proceed to trial. A pretrial conference is scheduled for
October 17, 2014 at which time a
trial date will be set. Between now and the pretrial conference the
Company and its legal team will be working in earnest to complete
everything that is required in preparation for trial.
LogMeIn Appeal -
On September 8,
2010, the Company filed a lawsuit in the Eastern District of
Virginia, against LogMeIn alleging
infringement of the '479 Patent. The case against LogMeIn proceeded
to trial and on March 26, 2013 the
Jury in the trial rendered its verdict concluding that 01
Communique's '479 Patent is valid but that LogMeIn does not
infringe the patent.
The Company disagrees with the jury's finding of
non-infringement and on June 26, 2013
a notice of appeal was filed 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 the
'479 Patent was valid and enforceable. Their cross appeal has been
consolidated with the Company's appeal. To date all briefs that are
due have been filed by both parties. The Company remains confident
in the merits of its appeal and expects the Hearing to take place
in the next several months after which a decision will be
rendered.
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 #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 (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
Unaudited
|
|
|
|
|
31-Jan-14 |
31-Oct-13 |
|
|
|
Assets |
|
|
Current assets |
|
|
Cash and cash equivalents |
$ 2,573,595 |
$ 3,072,281 |
Accounts receivable |
213,349 |
225,007 |
Prepaid expenses and other
assets |
91,182 |
36,073 |
|
2,878,126 |
3,333,361 |
|
|
|
Plant and equipment |
15,464 |
17,816 |
|
$ 2,893,590 |
$ 3,351,177 |
|
|
|
Liabilities & Shareholders' Equity |
|
|
|
|
|
Current liabilities |
|
|
Accounts payable &
accruals |
$
946,026 |
$ 1,048,164 |
Deferred revenue |
21,550 |
24,582 |
|
967,576 |
1,072,746 |
|
|
|
Shareholders' equity |
|
|
Share capital |
39,997,277 |
39,997,277 |
Contributed surplus |
4,514,994 |
4,468,044 |
Agent options |
111,780 |
111,780 |
Deficit |
(42,698,037) |
(42,298,670) |
|
1,926,014 |
2,278,431 |
|
$ 2,893,590 |
$ 3,351,177 |
01 Communique Laboratory
Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Operations and Comprehensive
Income
For the 3 month periods ended January 31, 2014 and 2013
Unaudited
|
|
|
for the 3 months ended |
|
|
31-Jan-14 |
|
31-Jan-13 |
|
|
|
|
Revenue |
$ 74,923 |
|
$ 174,475 |
Cost of revenue |
- |
|
- |
|
74,923 |
|
174,475 |
Expenses (income) |
|
|
|
Selling, general and administrative |
289,893 |
|
432,779 |
Patent enforcement & re-examination
expenses |
11,180 |
|
578,707 |
Research and development |
173,900 |
|
233,556 |
Interest |
(683) |
|
(10,089) |
|
474,290 |
|
1,234,953 |
Loss for the period and comprehensive loss |
(399,367) |
|
(1,060,478) |
|
|
|
|
Loss per common share |
|
|
|
Basic |
$ (0.006) |
|
$ (0.016) |
Diluted |
$ (0.006) |
|
$ (0.016) |
Weighted average number of common shares |
|
|
|
Basic |
65,203,807 |
|
64,937,427 |
Diluted |
65,203,807 |
|
64,937,427 |
01 Communique Laboratory
Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Cash Flows
For the 3 month periods ended January 31, 2014 and 2013
Unaudited |
|
|
three months ended |
|
|
31-Jan-14 |
31-Jan-13 |
Cash provided by (used in): |
|
|
|
|
|
Operating activities: |
|
|
Loss for the period |
$
(399,367) |
$
(1,060,478) |
Adjustments to reconcile the loss for
the period |
|
|
to net cash flows from operating activities |
|
|
Depreciation |
2,351 |
2,074 |
Stock-based
compensation |
46,950 |
182,856 |
Interest income |
(683) |
(10,089) |
Change in non-cash working
capital |
(148,620) |
345,255 |
|
(499,369) |
(540,382) |
Interest income received |
683 |
10,089 |
|
(498,686) |
(530,293) |
|
|
|
Financing activities: |
|
|
Issue of common shares |
- |
104,500 |
Investing activities: |
|
|
Purchase of capital assets |
- |
(5,333) |
Increase (decrease) in cash |
(498,686) |
(431,126) |
|
|
|
Cash and cash equivalents, beginning of
period |
3,072,281 |
4,547,375 |
Cash and cash equivalents, end of period |
$
2,573,595 |
$
4,116,249 |
SOURCE 01 Communique Laboratory Inc.