TORONTO, Oct. 29 /PRNewswire-FirstCall/ - Diversinet Corp.
(OTCBB: DVNTF, TSX Venture: DIV), a leading innovator of secure
mobile healthcare applications, reported its third quarter 2010
results for the period ended September 30, 2010. All dollar
amounts are in U.S. dollars.
Financial Highlights
Revenues for the third quarter were $394,000, compared to $1.9
million in the same quarter a year ago and were primarily derived
from the company's license and VAR agreement with Intersections,
Inc. Third quarter 2009 revenues included $1.6 million from the
license agreement with AllOne Mobile Corp. which was terminated in
June 2010.
Revenues for the nine months ended September 30,
2010 were $4.8 million, compared to $5.9 million in the same period
in 2009. Revenues in the first nine months of 2010 included $3.6
million derived from the settlement with AllOne and return of
common shares from Hospital Service Association of Northeastern
Pennsylvania, which was included in other income.
Net loss for the quarter was $933,000 or $(0.02)
per share and includes a government research and development tax
refund of $208,000 (2009-$nil), compared to net income in the same
year-ago quarter of $1.1 million or $0.02 per share. The net income
for the nine months ended September 30, 2010 was $3.4 million, or
$0.07 per share, compared to $2.3 million or $0.05 per share in the
similar nine months of 2009.
Included in the third quarter net loss was
non-cash stock-based compensation, depreciation and amortization of
$182,000 versus $277,000 in Q3 2009 and a foreign exchange gain of
$117,000 versus a gain of $667,000 in Q3 2009.
Cash and cash equivalents at September 30, 2010
were $13.8 million as compared to $12.7 million at December 31,
2009.
Operational Highlights
- In July 2010, Minneapolis based HealthPartners, the largest
consumer-governed, non-profit healthcare organization in the United
States, licensed Diversinet's MobiSecure® Health platform to
enhance mobile communications and build upon its mobile strategy.
HealthPartners is currently piloting new applications (for high
risk pregnancies and discharged patients with chronic illnesses)
secured with MobiSecure.
- In September 2010, Dr. Richard Eidinger, a physician executive
with diverse healthcare industry experience, joined the company's
board of directors. Licensed to practice medicine in both Canada
and the U.S., Dr. Eidinger brings to Diversinet a background
spanning the healthcare provider and payer market segments, both of
which Diversinet serves with its secure mobile platform and
applications. Dr. Eidinger has held executive positions with Aetna
Health Plans and FHP (now United Healthcare), and is a partner in
the Life Sciences practice of Heidrick & Struggles, one of the
world's premier executive-search and leadership-consulting
firms.
- In Q3 2010, to complement Mark Trigsted, Diversinet added three
U.S.-based sales executives with deep and diverse healthcare-IT
experience: Ivan Boyd was appointed senior vice president, and Gene
Ridge and Jon Smith were appointed as vice presidents.
"Q3 2010 represented important progress in
building our U.S.-based sales force with the addition of three
seasoned executives, as well as strengthening our corporate
governance and leadership with Dr. Eidinger," said Albert Wahbe,
Diversinet's chairman and CEO. "The highlight for the quarter was
clearly our new licence agreement with HealthPartners. With our
market-proven MobiSecure solution for mobile health, over the
coming quarters we believe additional pilots will showcase our
'connected and protected' mobile healthcare applications.
Diversinet stands to benefit tremendously from our foothold in a
market that by any measure is about to experience accelerated
growth."
Financial Summary |
Q3 2010 |
Q3 2009 |
Revenues |
$393,500 |
$1,948,705 |
Cost of revenues |
1,032 |
41,372 |
Gross margin |
392,468 |
1,907,333 |
|
|
|
Expenses |
|
|
Research and development |
496,954 |
742,629 |
Sales and marketing |
520,302 |
324,314 |
General and administrative |
428,299 |
481,525 |
Depreciation and amortization |
17,173 |
18,860 |
|
1,462,728 |
1,567,328 |
Income (loss) before the undernoted |
(1,070,260) |
340,005 |
Foreign exchange gain |
122,382 |
731,505 |
Interest income |
14,915 |
6,962 |
Net income (loss) for the period |
$(932,963) |
$1,078,472 |
Basic and diluted earnings per share |
$(0.02) |
$0.02 |
|
|
|
Cash and cash equivalents |
$13,798,031 |
$12,060,548 |
Total assets |
$14,038,908 |
$12,413,607 |
Total current liabilities |
$659,585 |
$288,234 |
Total shareholders' equity |
$13,379,323 |
$12,125,373 |
|
|
|
Weighted average basic common shares
outstanding |
41,927,307 |
47,181,935 |
Weighted average fully diluted common shares
outstanding |
41,927,307 |
47,380,962 |
For complete financial statements, including the
notes and management's discussion and analysis, please visit the
investors section on our website at
www.diversinet.com/AboutUs/Investors.html.
About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) provides the
healthcare industry with proven, reliable technology for mobile
applications that securely connect people with their healthcare
information, payers and providers - anyway, anytime and anywhere.
Diversinet's MobiSecure® platform helps payers and
providers meet rapidly growing needs for safe, convenient,
on-the-go storage and sharing of personal health data. Connect with
Diversinet Corp. at www.diversinet.com. Healthcare. Connected and
Protected.
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.
SOURCE Diversinet Corp.
Copyright . 29 PR Newswire