TORONTO, Oct. 28, 2011 /PRNewswire/ - Diversinet Corp.
(TSX Venture: DIV, OTCBB: DVNTF), a leader in "connected and
protected" mobile healthcare communications, reported its third
quarter 2011 financial results for the period ended September 30, 2011. All dollar amounts are in
U.S. dollars.
Financial Highlights
Revenues for the third quarter of 2011 were
$333,000, compared to $394,000 in the same period a year ago. Revenues
for the nine months ended September 30,
2011 were $909,000, compared
to $4.8 million in the same period in
2010. Revenues in the first nine months of 2010 included
$3.6 million derived from the
settlement with AllOne Mobile Corporation ("AllOne").
Net loss in the third quarter was $1,074,000 or $(0.03) per share, compared to net loss of
$933,000 or $(0.02) per share in the same period a year ago.
Net loss for the nine months ended September
30, 2011 was $3.9 million, or
$(0.09) per share, compared to net
income of $3.3 million or
$0.07 per share in the similar nine
months of 2010.
Included in the 2011 third quarter net loss were
non-cash stock-based compensation and depreciation of $181,000 versus $182,000 in Q3 2010 and a foreign exchange loss
of $15,000 versus a $117,000 gain in Q3 2010. In 2010, the
Company recognized other income of $3.6
million from the return of common shares from Hospital
Service Association of Northeastern
Pennsylvania, which was included in other income.
Cash and cash equivalents at September 30, 2011 were $8.7 million and $12.5
million at December 31,
2010.
Operational Highlights
- In September 2011, Diversinet
received a one year renewal from the U.S. Army's Telemedicine and
Advanced Technology Research Center (part of the U.S. Army Medical
Research and Materiel Command) mCare telehealth-outreach program
for members of the military recovering from mild traumatic brain
injuries and other wounds.
- During the third quarter of 2011, the company strengthened its
military healthcare expertise with the addition of Dr. Hon Pak and Mr. Fred
Hannett to its executive advisory board. Dr. Pak is a
previous president of the American Telemedicine Association and
recently retired as Chief Information Officer of the U.S. Army
Medical Department, Office of the Surgeon General. Mr.
Hannett is a Washington-based
consultant and healthcare IT thought leader with longstanding ties
to the U.S. Department of Defense, as well as founder and Managing
Principal of The Capitol Alliance.
- During the second quarter of 2011, Johnson & Johnson
Pharmaceutical Research & Development, L.L.C. ("J&J")
licensed Diversinet's MobiSecure product. The product
utilizes existing MobiSecure Publisher features and new features
being developed for consumer interaction. During the third
quarter of 2011, the company delivered a MobiSecure®
Publisher license to J&J.
- In September 2011, mCare, the
U.S. Army's Telemedicine and Advanced Technology Research Center
mobile health application for wounded warriors that is powered by
Diversinet's MobiSecure, received the '2010 Army Greatest
Inventions Award' representing the most innovative advances in Army
technology. Award nominees were judged by a panel of
non-commissioned officers with combat and practical experience, as
well as a panel of U.S. Army Training and Doctrine Command
field-grade officers.
"In the third quarter of 2011, we advanced the
market adoption of our proven secure mobile solutions in the
growing wireless health and mHealth marketplace," said Albert Wahbe, Diversinet's chairman and CEO.
"The substantial inroads we made earlier in the year continued to
bear fruit, as we work to complete one of our most exciting
implementation in partnership with a major U.S. pharmaceutical
company."
"We were also honored with the mCare program
receiving the U.S. Army's highest recognition for new technology
that serves its important mission," Wahbe added. "These deployments
demonstrate how MobiSecure's turn-key capability is able to provide
full customization without undergoing extensive product development
and testing, while also maintaining feature flexibility, security
and customer branding."
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.
|
Q3 2011 |
|
|
Q3 2010 |
Revenues |
$332,976 |
|
|
$393,500 |
Cost of revenues |
53,125 |
|
|
1,032 |
Gross margin |
279,851 |
|
|
392,468 |
|
|
|
|
|
Expenses |
|
|
|
|
Research and development |
539,156 |
|
|
496,954 |
Sales and marketing |
385,141 |
|
|
520,302 |
General and administrative |
409,957 |
|
|
428,299 |
Depreciation |
15,914 |
|
|
17,173 |
|
1,350,168 |
|
|
1,462,728 |
Loss before the undernoted |
(1,071,317) |
|
|
(1,070,260) |
Foreign exchange gain (loss) |
(9,409) |
|
|
122,382 |
Interest income |
5,405 |
|
|
14,915 |
Loss for the period |
$(1,074,321) |
|
|
$(932,963) |
Basic and diluted loss per share |
$(0.03) |
|
|
$(0.02) |
|
|
|
|
|
Cash and cash equivalents |
$8,658,899 |
|
|
$13,798,031 |
Total assets |
$9,256,575 |
|
|
$14,038,908 |
Total current liabilities |
$573,925 |
|
|
$659,585 |
Total shareholders' equity |
$8,682,650 |
|
|
$13,379,323 |
|
|
|
|
|
Weighted average basic and fully
diluted common shares outstanding |
42,671,847 |
|
|
41,927,307 |
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/Investors.html.
About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCBB:
DVNTF) provides patented and proven secure products that enable
healthcare organizations to rapidly deploy HIPAA-compliant mobile
healthcare (mHealth) applications to anyone, anytime, anywhere, on
mobile devices. Diversinet's MobiSecure® application
addresses the increasing need for secure messaging, as well as
safe, convenient, on-the-go storage and sharing of personal health
data. Learn more about how Diversinet is delivering "Healthcare.
Connected and Protected" at www.diversinet.com.
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.