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
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