TORONTO, June 5, 2013 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX) today announced results for its second quarter 2013 which ended April 30, 2013. The loss for the second quarter 2013 was $1,169,030 compared to $615,312 in 2012 an increase of $553,718 due primarily to the costs incurred for the LogMeIn Inc. ("LogMeIn") patent lawsuit of $688,000. Excluding non-cash expenses for stock-based compensation and depreciation, and the costs of the LogMeIn lawsuit the loss for the second quarter 2013 becomes $378,701 compared to $395,040 in 2012. The Company completed the quarter with $3,803,212 of cash and cash equivalents. "During the second quarter our patent litigation against LogMeIn concluded with a jury verdict finding our patent was valid but that LogMeIn did not infringe," said Andrew Cheung, President and CEO for 01 Communique. "We disagree with the jury finding of non-infringement and are seeking to have their finding overturned by the district court where the case was heard. We are waiting for the judge to render his decision. Should our efforts in this regard be unsuccessful then we plan to appeal to the United States Court of Appeals for the Federal Circuit. We believe in the merits of our appeal." "Going forward, our plan is to continue development of our suite of products as we strive to maintain our competitiveness," said Andrew Cheung. "We will also continue to vigorously defend our intellectual property rights as we have been doing against LogMeIn and Citrix Systems Inc. ("Citrix"). We have reduced our operating expenses to conserve our cash resources and at the same time allow us to carry on with these two objectives." Citrix Litigation Update - On May 8, 2013 a hearing took place in front of the United States Patent and Trademark Office's ("USPTO") Patent Trial and Appeal Board ("PTAB") in respect of the Citrix appeal of the results of the inter partes re-examination of our United States patent number 6,928,479 ("'479 Patent") which Citrix had requested. The hearing is the last step in the appeal process at the PTAB and we are now waiting for them to render their written report, which we expect to receive within the next few months. We are confident in the merits of our case and believe the PTAB will uphold the validity of the '479 Patent just as the jury did in the LogMeIn lawsuit and the USPTO patent examiner did in the Right of Appeal Notice ("RAN") and the Examiner's Report filed last year as part of the appeal process. Financial Highlights - -- Operating expenses for the second quarter 2013 were $1,369,785 compared to $722,733 in 2012 an increase of $647,032. -- Cash operating expenses which exclude stock-based compensation and depreciation were $1,267,436 for 2013 compared to $502,461 in 2012 an increase of $764,975. Excluding patent enforcement and re-examination costs, the cash operating expenses for the second quarter 2013 were $449,043 compared to 2012 of $502,461 a reduction of $53,418. -- Cash operating expenses have been further reduced and net of patent enforcement and re-examination costs are expected to be approximately $400,000 for the third quarter 2013. 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 30-Apr-13 31-Oct-12 Assets Current assets: Cash and $ 3,803,212 $ 4,547,375 cash equivalents Accounts receivable 283,836 282,981 Prepaid expenses and 94,590 35,676 other assets 4,181,638 4,866,032 Property and equipment 19,143 17,261 $ 4,200,781 $ 4,883,293 Liabilities and Shareholders' Equity Current liabilities: Accounts $ 1,384,597 $ 407,770 payable and accrued liabilities Deferred revenue 27,159 34,596 1,411,756 442,366 Shareholders' equity: Share capital 39,997,277 39,566,407 Contributed 4,036,066 3,752,710 surplus Agent options 111,780 248,400 Deficit (41,356,098) (39,126,590) 2,789,025 4,440,927 $ 4,200,781 $ 4,883,293 01 Communique Laboratory Inc. SELECTED FINANCIAL INFORMATION Consolidated Statements of Operations and Comprehensive Income For the 3 and 6 month periods ended April 30, 2013 and 2012 for the 3 months ending for the 6 months ending 30-Apr-13 30-Apr-12 30-Apr-13 30-Apr-12 Revenue $ 191,964 $ 103,284 $ 366,439 $ 171,372 Cost of 223 revenue - 82 - 191,964 103,202 366,439 171,149 Expenses (income): Selling, 343,236 474,932 776,015 1,007,714 general and administrative Patent 818,393 1,397,100 litigation and - - re-examination Research and 208,136 247,802 441,692 493,476 development Interest (18,860) (8,771) (4,219) (8,894) 1,360,994 718,514 2,595,947 1,492,296 Loss for the (1,169,030) (615,312) (2,229,508) (1,321,147) period and comprehensive loss Loss per common share Basic $ (0.018) $ (0.010) $ (0.034) $ (0.022) Diluted $ (0.018) $ (0.010) $ (0.034) $ (0.022) Weighted average number of common shares Basic 65,012,745 60,216,489 65,019,357 60,163,712 Diluted 65,012,745 60,216,489 65,019,357 60,163,712 01 Communique Laboratory Inc. SELECTED FINANCIAL INFORMATION Consolidated Statements of Cash Flows For the 3 and 6 month periods ended April 30, 2013 and 2012 three months ending six months ending 30-Apr-13 30-Apr-12 30-Apr-13 30-Apr-12 Cash provided by (used in): Operating activities: Loss for the period $ (1,169,030) $ (615,312) $ $ (1,321,147) (2,229,508) Adjustments to reconcile the loss for the period to net cash flows from operating activities Depreciation 1,829 2,206 3,903 5,561 Stock-based compensation 100,500 218,066 283,356 500,708 Interest income (8,771) (4,218) (18,860) (8,893) Change in non-cash working capital 564,366 (227,484) 909,621 (305,531) (511,106) (626,742) (1,051,488) (1,129,302) Interest income received 8,771 4,218 18,860 8,893 (502,335) (622,524) (1,032,628) (1,120,409) Financing activities: Issue of common shares 189,750 100,000 294,250 100,000 Investing activities: Purchase of capital assets (452) (649) (5,785) (790) Increase (decrease) in cash (313,037) (523,173) (744,163) (1,021,199) Cash and cash equivalents, beginning of period 4,116,249 2,623,391 4,547,375 3,121,417 Cash and cash equivalents, end of period $ 3,803,212 $ 2,100,218 $ $ 2,100,218 3,803,212 INVESTOR CONTACT: Brian Stringer Chief Financial Officer 01 Communique (905) 795-2888 x204 firstname.lastname@example.org 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/June2013/05/c5572.html CO: 01 Communique Laboratory Inc. ST: Ontario NI: CPR ELE SOF ERN -0- Jun/05/2013 21:00 GMT
01 Communique Reports Results for Second Quarter Fiscal 2013
Press spacebar to pause and continue. Press esc to stop.