TORONTO, Aug. 3, 2011 /PRNewswire/ - Diversinet Corp. (TSX
Venture: DIV, OTCBB: DVNTF), a leader in "connected and protected"
mobile healthcare communications, reported its second quarter 2011
results for the period ended June 30,
2011. All dollar amounts are in U.S. dollars.
Financial Highlights
Revenues for the second quarter of 2011 were $132,000, compared to $3.9
million in the same period a year ago. Revenues for the six
months ended June 30, 2011 were
$576,000, compared to $4.4 million in the same period in 2010. Revenues
in the quarter ended June 30, 2010
included $3.4 million from the AllOne
settlement agreement, and $330,000
from a license and VAR agreement.
Net loss in the second quarter was $1.7 million or $(0.04) per share, compared to net income of
$5.3 million or $0.11 per share in the same period a year ago.
Net loss for the six months ended June 30,
2011 was $2.8 million, or
$(0.07) per share, compared to net
income of $4.3 million or
$0.09 per share in the similar six
months of 2010.
Included in the second quarter net income was
non-cash stock-based compensation and depreciation of $202,000 versus $159,000 in Q2 2010 and a foreign exchange gain
of $5,000 versus a $210,000 loss in Q2 2010. In 2010, the
Company recognized other income of $3.6
million from the settlement agreement.
Cash and cash equivalents at June 30, 2011 were $9.8
million and $12.5 million at
December 31, 2010.
Operational Highlights
- In June 2011, one of the largest
U.S. pharmaceutical companies licensed MobiSecure® mHealth platform
for a pilot to improve medication utilization and consumer
interaction. Additional use cases will be incorporated to support
new commercial product launches.
- During the second quarter of 2011, the Company advanced key
elements of its mobile health strategy. This strategy includes
introducing new products and product enhancements, creating
customized mobile health applications, and expanding its network of
healthcare partners.
- Alan Portela, a mHealth
strategist and innovator, joined the company's Board of Directors.
Mr. Portela will also serve as chairman of a newly formed
Diversinet Executive Advisory Board. Mr. Portela has more than 25
years experience as an IT strategist and executive. He is currently
CEO of AirStrip Technologies and a board member for CliniComp,
Intl., and serves as an adviser to InTouch Health and Accenture.
The consulting firm founded by Mr. Portela, Hybrid Clinical
Transformation LLC, also has been retained by Diversinet to provide
sales and business development services.
"In the second quarter of 2011, we continued to
develop and market our proven secure mobile solutions in the
rapidly growing wireless health and mHealth marketplace," said
Albert Wahbe, Diversinet's chairman
and CEO. "We've made substantial inroads during the quarter,
including the formation of a number of key relationships."
"In the second half of 2011, we expect more
doors to open to us, as we continue to benefit from the
strengthening, widespread market demand for the secure mobilization
of health information, driven by the clear economics for healthcare
organizations."
Financial Summary
Effective for the 2010 fiscal year, the company has adopted U.S.
generally accepted accounting principles ("U.S. GAAP") for the
presentation of its consolidated financial statements for Canadian
and U.S. reporting requirements, and in this release has restated
comparative historical periods accordingly.
|
Q2
2011 |
Q2 2010 |
Revenues |
$132,108 |
$3,856,460 |
Cost of revenues |
30,744 |
993 |
Gross margin |
101,364 |
3,855,467 |
|
|
|
Expenses |
|
|
Research and development |
734,971 |
970,172 |
Sales and marketing |
482,880 |
387,315 |
General and administrative |
559,605 |
534,243 |
Depreciation |
16,216 |
16,276 |
|
|
1,793,672 |
1,908,006 |
Income (loss) before the
undernoted |
(1,692,208) |
1,947,461 |
Foreign exchange gain (loss) |
4,673 |
(210,332) |
Interest income |
26 |
12,036 |
Other income |
- |
3,560,707 |
Net income (loss) for the period |
$(1,687,609) |
$5,309,872 |
Basic and diluted earnings (loss) per
share |
$(0.04) |
$0.11 |
|
|
|
Cash and cash equivalents |
$9,790,920 |
$14,524,336 |
Total assets |
$10,159,955 |
$14,763,853 |
Total current liabilities |
$568,038 |
$616,545 |
Total shareholders' equity |
$9,591,917 |
$14,147,308 |
|
|
|
Weighted average basic and fully
diluted common shares outstanding |
42,503,921 |
47,721,191 |
For complete financial statements, including the
notes and management's discussion and analysis, please visit the
investors section on the company's website at
www.diversinet.com/AboutUs/Investors.html.
About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) provides a
patented and proven secure application platform that enables
healthcare organizations to rapidly deploy HIPAA-compliant mobile
healthcare (mHealth) applications to anyone, anytime, anywhere.
Diversinet's MobiSecure® platform helps meet the growing
needs for safe, convenient, on-the-go storage and sharing of
personal health data. Connect with Diversinet Corp. at
www.diversinet.com. Its tagline is "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. MobiSecure is a registered trademark of Diversinet
Corp.
SOURCE Diversinet Corp.