01 Communique Reports Third Quarter Fiscal 2012 Re
TORONTO, Sept. 7, 2012 /CNW/ -01 Communique Laboratory Inc. (TSX: ONE) today announced results for its third quarter fiscal 2012, which ended July 31, 2012. Revenue for the quarter was $582,440 ($41,464 in 2011) with a loss of $697,793 ($953,340 in 2011). The adjusted loss for the third quarter 2012 was $271,456 ($654,033 in 2011) which is the loss reported under IFRS excluding our non-cash expenses. We completed the quarter with $2,191,180 of cash and cash equivalents.
"We have had a number of key developments take place during and subsequent to the third quarter," said Andrew Cheung, President and CEO for 01 Communique. "We received a positive decision in our appeal to the United States Court of Appeals for the Federal Circuit with respect to our litigation with LogMeIn Inc. ("LogMeIn") and are now waiting for the district court to set a trial date. We completed our first licensing agreement in the remote support market with our partner, Wi-LAN Inc. ("WiLAN") (TSX:WIN) (NASD:WILN), and received the first payment. With respect to our lawsuit with Citrix Systems Inc. ("Citrix") and their appeal to the United States Patent and Trademark Office's ("USPTO") Board of Patent Appeals and Interferences, in August 2012 the USPTO Examiner filed the Examiner's Answer to Citrix's Appeal brief affirming his positions in the Right of Appeal Notice which had confirmed the patentability of the claims in our patent that were challenged by Citrix. We expect this appeal to continue forward to a decision. We have written to the Court advising them of the Examiner's Answer as well as the recent decision in the LogMeIn lawsuit and requested that the stay be lifted so the case can proceed to trial. We are waiting for the Court to render a decision on this request. Also, on August 31, 2012 we completed a bought deal financing in which we raised gross proceeds of $3,450,000 and believe that combined with the cash we have on hand there is sufficient cash available to fund operations for the foreseeable future."
Financial Highlights:
- The loss for the third quarter 2012 was $697,793 compared to $953,340 for the third quarter 2011 representing a decrease of $255,547.
- After adding back non-cash expenses for depreciation and amortization of $1,538 ($2,949 in 2011) and stock based compensation of $424,799 ($296,358 in 2011) the adjusted loss becomes $271,456 ($654,033 in 2011) a decrease of $382,577.
- The decrease in the adjusted loss for the third quarter is due primarily to the profitable results achieved from our partnership with WiLAN in completing a licensing agreement; an increase in contract services revenue in Japan and a reduction in patent litigation and re-examination expenses for our lawsuit against LogMeIn. In 2012 there have been no expenses incurred for the LogMeIn lawsuit whereas in the third quarter 2011 we incurred expenses of $227,529.
- For the fourth quarter 2012 we expect our operating expenses excluding non-cash expenses and patent enforcement and re-examination expenses to be approximately $475,000. We are now preparing for trial in our lawsuit against LogMeIn and expect to incur additional expenses.
- On August 31, 2012, we completed a financing raising $3,450,000 gross proceeds. The net proceeds from the offering are expected to be approximately $2,958,500 which combined with the cash and cash equivalents at July 31, 2012 of $2,191,180 would give us $5,149,680 of cash and cash equivalents.
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