01 Communique Reports Second Quarter 2009 Results

 TORONTO, June 5 /CNW/ - 01 Communique Laboratory Inc. (TSX:ONE) today announced results for its second quarter fiscal 2009, which ended April 30th. Revenue for the quarter was $156,838 with an operating loss of $331,502 or $0.006 per share compared to revenue of $172,247 with an operating loss of $217,412 or $0.004 per share for the same period in 2008. On a year to date basis revenue was $223,101 with a loss of $636,513 or $0.012 per share compared to revenue of $259,729 with a loss of $509,426 for 2008. We completed the quarter with $1,330,112 of cash and cash equivalents. "During the quarter we continued with our 3 part plan to grow our company and increase shareholder value," said Andrew Cheung, President and CEO for 01 Communique. "We are selling the SecurePC and SecureKEY as part of our line up of remote access products. We continue to work with Hitachi in Japan as we wait for their sales and marketing efforts to pay off. We are continuing with our patent litigation against Citrix Systems Inc. (NSDQ:CTXS)." Operational Update: - During the second quarter we announced a "one-stop" bundle consisting of our I'm InTouch remote access service combined with a 3G cellular data plan that is very economically priced. Our direct sales team is marketing this bundle to potential customers across Canada. - Product Awards - As a testimony to the quality of our products we received another product of the year award. Technology Marketing Corporation (TMC) has named our I'm InTouch remote access platform as a recipient of a 2008 Communications Solutions Product of the Year Award. - Our direct sales team continues to market our SecurePC and SecureKEY along with the I'm InTouch suite of remote access solutions throughout North America. "We plan to continue using our direct sales team to sell to small-medium sized businesses ("SME") throughout North America," said Andrew Cheung. "We are encouraged by the interest that has been shown in our cellular-data bundle and our SecurePC and SecureKEY." Patent Litigation Update: In March 2008 the judge in the case issued a memorandum and order staying the case pending re-examination of the patent underlying our claims. The USPTO issued its first office action as part of the re-examination process in June 2008. We filed our response and Citrix filed their response. All the reports are available from the USPTO's web site. We are now waiting for the USPTO's next office action. The technology underlying the patent is very unique and has already gone through a vigorous prosecution process prior to the granting of the patent. We anticipate the re-examination will be successful and our plan is to continue the process to trial and if necessary any appeal by Citrix. Financial Highlights: Operating expenses for second quarter 2009 were $486,977 compared to $388,410 for the same period in 2008. The majority of the increase is due to an increase in a non-cash charge for stock based compensation of $83,101. The cash operating expenses to run our business for the third quarter 2009 are expected to continue at approximately the same rate as the second quarter. We completed the period with cash and cash equivalents of $1,330,112, a decrease of $345,618. Cash was used predominately to fund the cash operating loss, which after adding back non-cash charges for stock-based compensation of $84,851, an increase non-cash working capital of $100,340 and depreciation of $3,113 amounts to $343,878. 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 (TSX: ONE) is an innovative force in the development and delivery of remote access and support products and integrated communications software. 01's suite of products includes its remote access product line I'm InTouch ([ www.imintouch.net ]) and its remote support product I'm OnCall ([ www.imoncall.com ]). For more information on its products, visit [ www.01com.com ] or call (905) 795-2888 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 Balance Sheets (Unaudited) April 30, 2009 and October 31, 2008 April 30, October 31, 2009 2008 ---------------------------- Assets Current assets Cash and cash equivalents $ 1,330,112 $ 1,974,658 Accounts receivable 125,206 65,363 Prepaid expenses and other assets 69,597 42,695 ---------------------------- 1,524,915 2,082,716 Capital assets 36,999 41,099 ---------------------------- $ 1,561,914 $ 2,123,815 ---------------------------- ---------------------------- Liabilities & Shareholders' Equity Current liabilities Accounts payable & accruals $ 321,728 $ 334,392 Deferred revenue 87,791 86,251 ---------------------------- 409,519 420,643 Shareholders' equity Share capital 30,326,144 30,514,944 Contributed surplus 1,188,659 669,453 Share purchase warrants 140,751 113,751 Agent options 78,018 371,288 Shareholder loans - (57,600) Deficit (30,581,177) (29,908,664) ---------------------------- 1,152,395 1,703,172 ---------------------------- $ 1,561,914 $ 2,123,815 ---------------------------- ---------------------------- 01 Communique Laboratory Inc. SELECTED FINANCIAL INFORMATION Consolidated Statements of Operations and Comprehensive Income (Unaudited) For the 3 and 6 month periods ended April 30, 2009 and 2008 for the three for the six months ending months ending April 30, April 30, April 30, April 30, 2009 2008 2009 2008 ------------------------- ------------------------- Revenue $ 156,838 $ 172,247 $ 223,101 $ 259,729 Cost of revenue 1,363 1,249 3,358 1,990 ------------------------- ------------------------- 155,475 170,998 219,743 257,739 Expenses (income) Selling, general and administrative 264,849 211,608 437,543 426,144 Patent litigation & re-examination expenses 16,542 - 16,542 - Research and development 200,072 203,794 400,321 396,106 Interest 2,401 (28,381) (4,375) (57,906) Depreciation and amortization 3,113 1,389 6,225 2,821 ------------------------- ------------------------- 486,977 388,410 856,256 767,165 ------------------------- ------------------------- ------------------------------------------------------------------------- Loss for the period and comprehensive loss (331,502) (217,412) (636,513) (509,426) ------------------------------------------------------------------------- Loss per common share Basic $ (0.006) $ (0.004) $ (0.012) $ (0.010) Diluted $ (0.006) $ (0.004) $ (0.012) $ (0.010) Weighted average number of common shares Basic 51,586,878 51,485,207 51,656,325 51,258,864 Diluted 51,586,878 51,485,207 51,656,325 51,258,864 01 Communique Laboratory Inc. Consolidated Statements of Cash Flows (Unaudited) For the 3 and 6 month periods ended April 30, 2009 and 2008 for the three for the six months ending months ending April 30, April 30, April 30, April 30, 2009 2008 2009 2008 ------------------------- ------------------------- Cash provided by (used in): Operating activities: Loss for the period $ (331,502) $ (217,412) $ (636,513) $ (509,426) Items not involving cash: Depreciation and amortization 3,113 1,389 6,225 2,821 Stock-based compensation 84,851 1,750 85,736 7,375 Change in non-cash working capital (100,340) (217,589) (97,869) (200,888) ------------------------- ------------------------- (343,878) (431,862) (642,421) (700,118) Financing activities: Issue of common shares - 74,167 - 162,561 Investing activities: Purchase of capital assets (1,740) (9,562) (2,125) (15,469) Increase (decrease) in cash (345,618) (367,257) (644,546) (553,026) Cash and cash equivalents, beginning of period 1,675,730 2,700,501 1,974,658 2,886,270 ------------------------- ------------------------- Cash and cash equivalents, end of period $ 1,330,112 $ 2,333,244 $ 1,330,112 $ 2,333,244 ------------------------- -------------------------

For further information: Investor Contact: Brian Stringer, Chief Financial Officer, 01 Communique, (905) 795-2888 x204, [ brian.stringer@01com.com ]

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01 Communique Reports Second Quarter 2009 Results