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01 Communique Reports Results for Fiscal 2012


TORONTO, Dec. 17, 2012 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX) today announced results for its fiscal year ended October 31, 2012 and provided an update on the Company's expectations for the upcoming year.

Highlights of 2012 -


    --  Revenue for the year of $933,514 compared to $476,342 in 2011.
    --  Loss of $2,524,339 for the year compared to $3,646,307 in 2011.
    --  Excluding our non-cash expenses for stock based compensation
        and depreciation the adjusted loss for the year was $1,382,325
        a decrease of $1,275,725 from 2011 of $2,658,050.
    --  Excluding our non-cash expenses the adjusted loss for the
        fourth quarter 2012 was $295,991 which is fairly consistent
        with the $287,256 incurred for the same period in 2011.
    --  Finished the year with cash and cash equivalents of $4,547,375.
    --  Completed a public offering in August 2012 raising gross
        proceeds of $3,450,000.
    --  Along with our partner Wi-LAN Inc. ("WiLAN") (TSX:WIN)
        (NASD:WILN) entered into a Settlement and Patent License
        Agreement with Bomgar Corporation ("Bomgar").
    --  The Order from the United States Court of Appeals for the
        Federal Circuit in respect of our appeal in our patent
        litigation against LogMeIn Inc. ("LogMeIn") sided with the
        Company and remanded the case back to the district court for
        trial.
    --  The USPTO Examiner filed the Examiner's answer to Citrix
        Systems Inc.'s ("Citrix") Appeal brief affirming his positions
        in the Right of Appeal Notice ("RAN") which confirmed the
        validity of the claims contested in the re-examination by
        Citrix.

"We completed the year with $4,547,375 of cash and cash equivalents and 
believe we have sufficient cash resources for the foreseeable future," said 
Andrew Cheung, President and CEO for 01 Communique. "Our operating loss 
adjusted for non-cash expenses was reduced substantially from $2,658,050 in 
2011 to $1,382,325 in 2012 primarily a result of an increase in revenue from 
intellectual property and a reduction in patent litigation and re-examination 
expenses. During 2012 our operating expenses, excluding our non-cash items 
(stock based compensation and depreciation) and our patent litigation and 
re-examination expenses, were $1,865,060 compared to $1,942,765 in 2011. Our 
patent litigation and re-examination expenses amounted to $470,031 a 
substantial reduction from the $1,218,300 incurred in 2011. We expect our 
first quarter 2013 operating expenses excluding non-cash items to be 
approximately $475,000 and in addition we expect to incur patent litigation 
and re-examination expenses of approximately $500,000 through to the end of 
our trial with LogMeIn."

Update on Our Intellectual Property -

"Today, we have a suite of products in the remote access, support and online 
collaboration markets," said Andrew Cheung. "We plan to continue developing 
products for these markets and at the same time protect our intellectual 
property rights. We believe there are significant damages accruing against 
companies that we believe infringe on our intellectual property. We are 
currently enforcing our rights against two of these companies, Citrix and 
LogMeIn. Aside from Citrix and LogMeIn, in conjunction with our partner WiLAN 
we have identified a number of other such companies."

1. LogMeIn Litigation.
On April 1, 2011, the judge in the case granted LogMeIn's motion for claim 
construction and its summary judgment motion for non-infringement and removed 
the case from the court's trial calendar.  We appealed that judgment to the 
United States Court of Appeals for the Federal Circuit.  On July 31, 2012, 
the United States Court of Appeals for the Federal Circuit issued its Order in 
respect of our appeal remanding the case back to the district court for trial. 
The Order sided with the Company and provided a claim construction in 
accordance with the construction we offered. A pretrial hearing is scheduled 
for January 17, 2013 at which time a court date is expected to be set four to 
six weeks thereafter. We are confident in the merits of our case and are 
preparing in earnest for trial.

2. Citrix Litigation.   
As part of the litigation Citrix requested an inter partes re-examination of 
our patent by the United States Patent and Trademark Office ("USPTO"). On 
March 12, 2008, the judge in the litigation issued a memorandum and order 
staying the case pending the re-examination.  On July 6, 2010 a Right of 
Appeal Notice was issued confirming the patentability of the claims in the 
re-examination that were challenged by Citrix. Citrix filed a Notice of Appeal 
appealing that decision to the USPTO's Board of Patent Appeals and 
Interferences ("BPAI"). That appeal is in process and as a part of that 
process, on August 16, 2012, the USPTO Examiner filed the Examiner's Answer to 
Citrix's Appeal brief affirming his positions in the RAN which confirmed the 
validity of the claims contested by Citrix in the re-examination. The next 
step in the process is expected to be a hearing in front of the BPAI after 
which we expect them to render their decision. We are confident that the 
validity of our patent will be affirmed by the BPAI. In the interim, we have 
written to the Court advising them of the Examiner's Answer as well as the 
recent decision by the United States Court of Appeals for the Federal Circuit 
in the LogMeIn lawsuit and  requested the case be reopened so that the stay 
can be lifted and the case proceed to trial. We are waiting for the Court to 
render a decision on this request.

3. WiLAN Partnership. 
Along with our partner WiLAN we entered into a Settlement and Patent License 
Agreement with Bomgar, which settled all litigation among the parties and 
provided Bomgar with a license to 01 Communique's US Patent No. 6,928,479 and 
6,938,076, US Patent App. 95/001018 Canada Patent No. 2,309,398 and certain 
patents issuing from or claiming priority to the foregoing. This was the first 
license entered into as a result of our partnership with WiLAN. WiLAN's 
Gladios Division had day-to-day responsibility for developing the licensing 
program as per the terms of our agreement. We look forward to executing new 
programs under our agreement.

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 
#6928479 / #6938076 / #8234701 and in  Canada by its patent #2309398 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
                                                 
                                      31-Oct-12                 31-Oct-11
                                                                         

Assets                                                                   

Current                                                                  
assets

Cash and $ 4,547,375 $ cash 3,121,417 equivalents

Accounts 282,981 receivable 148,917

Prepaid 35,676 expenses and 36,844 other assets


                                      4,866,032                          
                                                                3,307,178
                                                                         

Capital                                  17,261                          
assets                                                             21,324
                   $                  4,883,293        $                 
                                                                3,328,502
                                                                         

Liabilities &                                                            
Shareholders'
Equity
                                                                         

Current                                                                  
liabilities

Accounts $ 407,770 $ payable & 909,508 accruals

Deferred 34,596 revenue 46,150


                                        442,366                          
                                                                  955,658
                                                                         

Shareholders'                                                            
equity

Share 39,566,407 capital 36,201,686

3,752,710 Contributed 2,619,426 surplus

Share purchase - 58,742 warrants

Agent 248,400 options 95,241


    Deficit                         (39,126,590)                         
                                                             (36,602,251)
                                      4,440,927                          
                                                                2,372,844
                   $                  4,883,293        $                 
                                                                3,328,502
                                                 
     
                               01 Communique Laboratory Inc.
                              SELECTED FINANCIAL INFORMATION
      Consolidated Statements of Operations and Comprehensive Income
      For the 3 and 12 month periods ended October 31, 2012 and 2011
                                                             
                   for the 3 months ending     for the 12 months ending
                       31-Oct-12   31-Oct-11      31-Oct-12   31-Oct-11

Revenue                $ 179,702   $ 150,918      $ 933,514   $ 476,342

Cost of                                                    
revenue                       11         101            272         506
                         179,691     150,817        933,242     475,836
                                                                       

Expenses                                                   
(income)                                                               

Selling,                 509,760     551,517      2,131,905
general and
administrative                                                2,053,206

Patent                                              470,031
enforcement &             45,031      50,478
re-examination
expenses                                                      1,218,300

Research and             137,602     134,918        875,169
development                                                     877,816

Interest                 (7,303)                          
                                     (4,488)       (19,524)    (27,179)
                         685,090     732,425      3,457,581   4,122,143

Loss for the           (505,399)   (581,608)    (2,524,339)
period and
comprehensive
loss                                                        (3,646,307)
                                                                       

Loss per                                                   
common share                                                           

Basic                  $ (0.008)         $               $
                                     (0.010)        (0.041)   $ (0.061)

Diluted                       $          $        $ (0.041)
                         (0.008)     (0.010)                  $ (0.061)
                                                                       

Weighted                                                   
average number
of common
shares                                                                 

Basic                 63,393,415  60,122,045     61,095,941  59,979,997

Diluted               63,393,415  60,122,045     61,095,941  59,979,997
                                                             
     
                                       01 Communique Laboratory Inc.
                                      SELECTED FINANCIAL INFORMATION
                                 Consolidated Statements of Cash Flows
              For the 3 and 12 month periods ended October 31, 2012 and 2011
                                                                     
                           three months ending             twelve months ending
                  31-Oct-12              31-Oct-11        31-Oct-12     31-Oct-11

Cash provided                                                                    
by (used in):
                                                                                 

Operating                                                                        
activities:

  Loss for the      $              $     (581,608)   $  (2,524,339)          $  
period            (505,399)                                           (3,646,307)

  Adjustments                                                        
to reconcile
the loss for
the

period to net cash flows from operating

activities:

2,949 Depreciation 1,631 8,730 12,849

291,403 Stock-based 207,777 1,133,284 975,408 compensation

Interest (4,488) income (7,303) (19,524) (27,179)

Change in (115,213) non-cash (428,290) (646,188) 445,363 working capital

(406,957)


                  (731,584)                             (2,048,037)   (2,239,866)

Interest                                     4,488                               
income                7,303                                  19,524        27,179
received
                                         (402,469)                              
                  (724,281)                             (2,028,513)   (2,212,687)
                                                                                 

Financing                                                                        
activities:

Issue of common shares 3,083,688 - 3,459,139 470,121

Investing activities:

Purchase (1,460) of capital (3,212) (4,668) (5,415) assets

Increase (403,929) (decrease) in 2,356,195 1,425,958 (1,747,981) cash

Cash and cash 3,525,346 equivalents, 2,191,180 3,121,417 4,869,398 beginning of period

Cash and cash $ $ 3,121,417 $ 4,547,375 $ equivalents, 4,547,375 3,121,417 end of period

INVESTOR CONTACT:

Brian Stringer Chief Financial Officer 01 Communique (905) 795-2888 x204 brian.stringer@01com.com

SOURCE: 01 Communique Laboratory Inc.

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/December2012/17/c9455.html

CO: 01 Communique Laboratory Inc. ST: Ontario NI: CPR ELE SOF ERN

-0- Dec/17/2012 12:00 GMT

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