01 Communique Reports Results for First Quarter Fiscal 2013

TORONTO, March 4, 2013 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX) today 
announced results for its first quarter 2013 which ended January 31, 2013 and 
provided an update on the Company's patent litigation with LogMeIn Inc. 
("LogMeIn"). A jury trial is scheduled to start on Monday March 18, 2013 and 
is expected to last approximately two weeks. 
Financial Highlights of the First Quarter - 


    --  Revenue for the first quarter was $174,475 compared to $68,088
        in 2012.
    --  Loss of $1,060,478 for the first quarter compared to $705,835
        in 2012.
    --  Excluding our non-cash expenses for stock based compensation
        and depreciation the adjusted loss for the quarter was $875,548
        compared to $419,838 in 2012 representing a $455,710 increase
        which is primarily a result of expenses pertaining to the
        LogMeIn patent lawsuit.
    --  Our cash operating expenses excluding expenses pertaining to
        patent litigation and re-examination were $471,316 for the
        quarter compared to $487,785 for 2012.
    --  We finished the quarter with cash and cash equivalents of
        $4,116,249.

"We completed the quarter with $4,116,249 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 first quarter cash 
operating expenses to run our business excluding patent litigation and 
re-examination expenses were $471,316 and are in line with our expectations. 
For the second quarter 2013 we expect these cash operating expenses to remain 
relatively consistent at approximately $475,000. In addition we incurred 
approximately $451,000 of expenses pertaining to the LogMeIn lawsuit in the 
first quarter 2013 and expect to incur an additional $200,000 through to the 
end of trial."

Update on Our Intellectual Property -

"We have a suite of products in the remote access, support and online 
collaboration markets," said Andrew Cheung. "Our plan is to continue 
developing products for these markets and 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 WiLAN we have identified a number 
of other such companies."

LogMeIn Litigation -

We commenced our patent infringement lawsuit against LogMeIn in September 2010 
in the Eastern District of Virginia. A jury trial is scheduled to begin two 
weeks from now on Monday March 18, 2013 and is expected to last approximately 
2 weeks. Our lawsuit alleges infringement by LogMeIn of our U.S. Patent No. 
6,928,479 which was issued in August 2005 and does not expire until 2022. As 
well as alleging infringement we are alleging willful infringement which can 
result in a multiple of damages and going forward we are requesting the court 
grant an injunction against LogMeIn from continuing to use our patent. With 
respect to the period from the date the patent was issued in August 2005 to 
the present time we believe we are entitled to a reasonable royalty on revenue 
generated by LogMeIn from the use of our patented technology and a reasonable 
royalty based on the value derived by LogMeIn for each of their free users 
that also make use of our patented technology.

"We remain confident in the merits of our lawsuit and look forward to our day 
in court, just two weeks away," said Andrew Cheung. "We believe they have been 
using our patented technology to compete against us for over 7 years now and 
believe that we should be entitled to receive payment for this use. Going 
forward we are hopeful that the court will grant an injunction against them 
continuing to use our patented technology."

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 ("RAN") 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.

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-Jan-13        31-Oct-12
                                                                      

Assets                                                                

Current assets:                                                       
    Cash and cash equivalents         $     4,116,249 $      4,547,375
    Accounts receivable                       257,776          282,981
    Prepaid expenses and other assets          81,013           35,676
                                            4,455,038        4,866,032
                                                                      

Property and equipment                         20,520           17,261
                                      $     4,475,558 $      4,883,293
                                                                      

Liabilities and Shareholders' Equity                                  
                                                                      

Current liabilities:                                                  
    Accounts payable and accrued      $       778,616 $        407,770
    liabilities
    Deferred revenue                           29,137           34,596
                                              807,753          442,366
                                                                      

Shareholders' equity:                                                 
    Share capital                          39,670,907       39,566,407
    Contributed surplus                     3,935,566        3,752,710
    Agent options                             248,400          248,400
    Deficit                              (40,187,068)     (39,126,590)
                                            3,667,805        4,440,927
                                      $     4,475,558 $      4,883,293
                                         
                      01 Communique Laboratory Inc.
                      SELECTED FINANCIAL INFORMATION
      Consolidated Statements of Operations and Comprehensive Income
         For the 3 month periods ended January 31, 2013 and 2012
                                                            
                                  for the 3 months ended              
                                               31-Jan-13     31-Jan-12
                                                                      

Revenue                           $              174,475 $      68,088

Cost of revenue                                        -           141
                                                 174,475        67,947
                                                                      

Expenses (income):                                                    

Selling, general and                             432,779       532,783
administrative

Patent litigation and                            578,707             -
re-examination

Research and development                         233,556       245,674

Interest                                        (10,089)       (4,675)
                                               1,234,953       773,782
                                                                      

Loss for the period and           $          (1,060,478) $   (705,835)
comprehensive loss
                                                                      

Loss per common share:                                                

Basic                             $              (0.016) $     (0.012)

Diluted                           $              (0.016) $     (0.012)
                                                                      

Weighted average number of common                                     
shares

Basic                                         64,937,427    60,122,045

Diluted                                       64,937,427    60,122,045
                            01 Communique Laboratory Inc.
                        SELECTED FINANCIAL INFORMATION
                     Consolidated Statements of Cash Flows
            For the 3 month periods ended January 31, 2013 and 2012
                                                      
                                Three months ended                     
                                         31-Jan-13            31-Jan-12

Cash provided by (used in):                                            
                                                                       

Operating activities:                                                  

  Loss for the period          $       (1,060,478) $          (705,835)

  Adjustments to reconcile the                                         
  loss for the period

  to net cash flows from                                               
  operating activities:
    Depreciation of property                 2,074                3,355
    and equipment
    Stock-based compensation               182,856              282,642
    expense
    Interest income                       (10,089)              (4,675)

  Change in non-cash operating             345,255             (78,047)
  working capital 
                                         (540,382)            (502,560)

Interest income received                    10,089                4,675
                                         (530,293)            (497,885)
                                                                       

Financing activities:                                                  

  Issuance of common shares                104,500                  -  

Investing activities:                                                  

  Purchase of property and                 (5,333)                (141)
  equipment

Decrease in cash and cash                (431,126)            (498,026)
equivalents
                                                                       

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

Cash and cash equivalents, end $         4,116,249 $          2,623,391
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/March2013/04/c2226.html

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

-0- Mar/04/2013 22:56 GMT


 
Press spacebar to pause and continue. Press esc to stop.