TORONTO, June 9, 2014 /CNW/ - 01 Communique Laboratory
Inc. (ONE:TSX) today announced results for its second quarter 2014
which ended April 30, 2014. The loss
for the second quarter 2014 was $369,632 compared to a loss of $1,169,030 for the same period in 2013, a
decrease of $799,398. Excluding
non-cash expenses for stock-based compensation and depreciation the
adjusted loss for the second quarter 2014 was $324,559 (2013 - $1,066,559) a decrease of $674,625. The Company completed the quarter with
$2,101,469 of cash and cash
equivalents.
"As we move forward our plan is 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 accelerate our product development," said
Andrew Cheung, President and CEO for
01 Communique. "In respect of our patent litigation against Citrix
and LogMeIn there have been several recent developments which are
highlighted below."
"In the LogMein case the Federal Circuit affirmed the district
court's finding of non-infringement as well as affirming the
validity of our patent. We are disappointed with the finding of
non-infringement but believe that decision is limited to that
case," said Andrew Cheung, President
and CEO of 01 Communique. "As we move forward with our lawsuit
against Citrix we do so with a patent that has had its validity
confirmed by the Federal Circuit."
"On May 30, 2014 Citrix filed a
patent infringement case in the central district of California alleging infringement of one of
their patents by our I'm InTouch Meeting product and as well
requested a declaratory judgment against us alleging that their
GoToMeeting product offering does not infringe the "479 Patent".
Shortly thereafter on June 3, 2014
the Judge presiding over the litigation in the Northern District of
Ohio issued an Opinion and Order
granting our motion to amend our original complaint to include
alleged infringement of the "479 Patent" by their GoToMeeting
product offering, which we did on June 6,
2014, as well as their GoToMyPC product offering," said
Andrew Cheung. "We believe their
patent infringement allegation is without merit and we will defend
ourselves against it. In respect of the declaratory judgment issue,
we feel confident that the case will proceed with respect to their
GoToMeeting product offering in Ohio."
Background on the Company's patent lawsuits against Citrix
Systems Inc. ("Citrix") and LogMeIn Inc. ("LogMeIn") follows.
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 was requested for
October 17, 2014 at which time a
trial date is expected to 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.
On May 30, 2014 Citrix filed a
complaint in the United States District Court Central District of
California alleging infringement
of their U.S. Patent No. 7,219,233 by the Company's I'm
InTouch Meeting product and requesting a declaratory judgment
against the Company alleging that that Citrix's GoToMeeting product
offering does not infringe the "479 Patent". On June 3, 2014 the Judge presiding over the
litigation in the Northern District of Ohio issued an Opinion and Order granting the
Company's motion to amend the original complaint, which was done on
June 6, 2014, to include alleged
infringement of the "479 Patent" by Citrix's GoToMeeting product
offering as well as their GoToMyPC product offering.
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.
Earlier today, on June 9, 2014,
the United States Court of Appeals
for the Federal Circuit issued its Order in respect of the
Company's appeal affirming the district court's finding that
LogMeIn did not infringe 01 Communique's patent while also
affirming the district court's finding that the patent is
valid.
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
|
30-Apr-14
|
31-Oct-13
|
|
|
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash equivalents
|
$2,101,469
|
$3,072,281
|
Accounts receivable
|
190,458
|
225,007
|
Prepaid expenses and other assets
|
80,924
|
36,073
|
|
2,372,849
|
3,333,361
|
|
|
|
Plant and
equipment
|
13,591
|
17,816
|
|
$2,386,440
|
$3,351,177
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Accounts payable & accruals
|
$689,224
|
$1,048,164
|
Deferred revenue
|
22,034
|
24,582
|
|
711,258
|
1,072,746
|
|
|
|
Shareholders'
equity
|
|
|
Share
capital
|
40,072,877
|
39,997,277
|
Contributed surplus
|
4,558,194
|
4,468,044
|
Agent
options
|
111,780
|
111,780
|
Deficit
|
(43,067,669)
|
(42,298,670)
|
|
$1,675,182
|
$2,278,431
|
|
$2,386,440
|
$3,351,177
|
01 Communique Laboratory Inc.
SELECTED
FINANCIAL INFORMATION
Consolidated
Statements of Operations and Comprehensive
Income
For the 3 and 6 month periods ended
April 30, 2014 and
2013
Unaudited
|
for the 3 months
ending
|
|
for the 6 months
ending
|
|
30-Apr-14
|
30-Apr-13
|
|
30-Apr-14
|
30-Apr-13
|
|
|
|
|
|
|
Revenue
|
$84,665
|
$191,964
|
|
$159,588
|
$366,439
|
Cost of
revenue
|
-
|
-
|
|
-
|
-
|
|
84,665
|
191,964
|
|
159,588
|
366,439
|
|
|
|
|
|
|
Expenses
(income)
|
|
|
|
|
|
Selling, general and
administrative
|
249,428
|
343,236
|
|
539,321
|
776,015
|
Patent enforcement
and
re-examination
expenses
|
18,516
|
818,393
|
|
29,696
|
1,397,100
|
Research and
development
|
188,579
|
208,136
|
|
362,479
|
441,692
|
Interest
|
(2,226)
|
(8,771)
|
|
(2,909)
|
(18,860)
|
|
454,297
|
1,360,994
|
|
928,587
|
2,595,947
|
|
|
|
|
|
|
Loss for the period
and comprehensive loss
|
(369,632)
|
(1,169,030)
|
|
(768,999)
|
(2,229,508)
|
|
|
|
|
|
|
Loss per common
share
|
|
|
|
|
|
Basic
|
$(0.006)
|
$(0.018)
|
|
$(0.012)
|
$(0.034)
|
Diluted
|
$(0.006)
|
$(0.018)
|
|
$(0.012)
|
$(0.034)
|
|
|
|
|
|
|
Weighted average
number of common shares
|
|
|
|
|
|
Basic
|
65,294,818
|
65,012,745
|
|
65,248,312
|
65,019,357
|
Diluted
|
65,294,818
|
65,012,745
|
|
65,248,312
|
65,019,357
|
01 Communique Laboratory Inc.
SELECTED FINANCIAL
INFORMATION
Consolidated Statements of Cash
Flows
For the 3 and 6 month periods ended April 30, 2014 and
2013
Unaudited
|
for the 3 months
ending
|
|
for the 6 months
ending
|
|
|
30-Apr-14
|
30-Apr-13
|
|
30-Apr-14
|
30-Apr-13
|
|
Cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
Loss for
the period
|
$(369,632)
|
$(1,169,030)
|
|
$(768,999)
|
$(2,229,508)
|
Adjustments to reconcile the loss for
|
|
|
|
|
|
the period to net
cash flows from
operating
activities
|
|
|
|
|
|
Depreciation
|
1,873
|
1,829
|
|
4,224
|
3,903
|
Stock-based
compensation
|
43,200
|
100,500
|
|
90,150
|
283,356
|
Interest income
|
(2,226)
|
(8,771)
|
|
(2,909)
|
(18,860)
|
Change
in non-cash working capital
|
(223,167)
|
564,366
|
|
(371,787)
|
909,621
|
|
(549,952)
|
(511,106)
|
|
(1,049,321)
|
(1,051,488)
|
Interest income
received
|
2,226
|
8,771
|
|
2,909
|
18,860
|
|
(547,726)
|
(502,335)
|
|
(1,046,412)
|
(1,032,628)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Issue of common shares
|
75,600
|
189,750
|
|
75,600
|
294,250
|
Investing
activities:
|
|
|
|
|
|
Purchase of capital assets
|
|
(452)
|
|
|
(5,785)
|
Increase (decrease)
in cash
|
(472,126)
|
(313,037)
|
|
(970,812)
|
(744,163)
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
2,573,595
|
4,116,249
|
|
3,072,281
|
4,547,375
|
Cash and cash
equivalents, end of period
|
$2,101,469
|
$3,803,212
|
|
$2,101,469
|
$3,803,212
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE 01 Communique Laboratory Inc.