01 Communique Reports Results for First Quarter Fi
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.