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01 Communique Reports Third Quarter 2009 Results

^{Published on 2009-09-10 13:26:44 - Market Wire}
 

 TORONTO, Sept. 10 /CNW/ - 01 Communique Laboratory Inc. (TSX:ONE) today announced results for its third quarter fiscal 2009, which ended July 31st. Revenue for the quarter was $120,617 with an operating loss of $250,983 or $0.005 per share compared to revenue of $84,116 with an operating loss of $346,835 or $0.007 per share for the same period in 2008. On a year to date basis revenue was $343,718 with a loss of $887,496 or $0.017 per share compared to revenue of $343,845 with a loss of $856,261 or $0.017 per share for 2008. We completed the quarter with $1,089,387 of cash and cash equivalents. "During the third quarter we were able to reduce our operating expenses and as a result reduce our operating loss," said Andrew Cheung, President and CEO for 01 Communique. "In addition, we made progress with our patent re-examination process as part of our patent litigation against Citrix Systems Inc. On August 19th we received a non-final Office Action Closing Prosecution from the United States Patent and Trademark Office ("USPTO") in which 4 claims were found to be patentable. All we need is one claim to be found valid and infringed. Progress was also made during the quarter towards building revenue from our direct sales efforts. Subsequent to the end of the quarter, on September 1st, Hitachi in Japan announced the release of the latest version of DoMobile. Updates are provided below." Hitachi Update: On September 1st, Hitachi Business Solution announced that the new version of DoMobile CSE Ver.2.7 will be released in Japan on September 25th. The new version incorporates Intel Corporation's vPro technology thereby enhancing DoMobile's remote wake-up functionality, which utilizes our patent-pending remote wake up technology. This improves the remote power management of their office PC's, most importantly allowing remote resetting of any PC or Server even if it is "frozen" i.e. blue screen. DoMobile is marketed in Japan, under a license agreement with the Company, as a secure remote access solution for businesses to support their mobile computing needs, as well as a continuity solution for the possibility of a flu pandemic, and as part of the infrastructure required for cloud-computing. Patent Re-examination Update: On August 19th, the USPTO issued an Office Action Closing Prosecution (non-final) in which 4 claims were found to be patentable. The company is confident that the outcome of the re-examination process will be the affirmation of the validity of asserted claims of the '479 patent as originally issued. A copy of the Office Action is available from the USPTO's web site at [ http://portal.uspto.gov/external/portal/pair ]. The application number is 95/001018. The background of our case against Citrix is as follows. In February, 2006 we commenced legal action against Citrix for infringement of our patent. A copy of the court pleading is on our web site. A claim construction hearing, commonly referred to as a Markman Hearing, was held in November 2006. The claim construction order establishes the meaning of the patent claims terms in dispute between the parties. In the Order, the judge adopted the construction asserted by the Company for 19 of the 20 disputed terms. In March 2008, approximately one month before the trial was scheduled to commence, the judge issued a memorandum and order staying the case pending re-examination of the patent by the USPTO. Financial Highlights: Operating expenses for third quarter 2009 were $370,591 compared to $429,263 for the same period in 2008. The majority of the decrease is due to expenses incurred in the third quarter 2008 for the patent re-examination process. The cash operating expenses to run our business for the fourth quarter 2009 are expected to be approximately $400,000. We completed the period with cash and cash equivalents of $1,089,387 a decrease of $240,725. Cash was used predominately to fund the cash operating loss, which after adding back non-cash charges amounted to $239,827. 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) July 31, 2009 and October 31, 2008 July 31, 2009 October 31, 2008 ------------------ ------------------ Assets Current assets Cash and cash equivalents $ 1,089,387 $ 1,974,658 Accounts receivable 119,931 65,363 Inventory 23,914 - Prepaid expenses and other assets 28,197 42,695 -------------- -------------- 1,261,429 2,082,716 Capital assets 34,784 41,099 -------------- -------------- $ 1,296,213 $ 2,123,815 -------------- -------------- -------------- -------------- Liabilities & Shareholders' Equity Current liabilities Accounts payable & accruals $ 301,202 $ 334,392 Deferred revenue 91,001 86,251 -------------- -------------- 392,203 420,643 Shareholders' equity Share capital 30,326,144 30,514,944 Contributed surplus 1,353,596 669,453 Share purchase warrants 37,556 113,751 Agent options 18,874 371,288 Shareholder loans - (57,600) Deficit (30,832,160) (29,908,664) -------------- -------------- 904,010 1,703,172 -------------- -------------- $ 1,296,213 $ 2,123,815 -------------- -------------- -------------- -------------- 01 Communique Laboratory Inc. SELECTED FINANCIAL INFORMATION Consolidated Statements of Operations and Comprehensive Income (Unaudited) For the 3 and 9 month periods ended July 31, 2009 and 2008 for the three months for the nine months ending ending July 31, July 31, July 31, July 31, 2009 2008 2009 2008 ------------------------ ----------------------- Revenue $ 120,617 $ 84,116 $ 343,718 $ 343,845 Cost of revenue 1,009 1,688 4,367 3,678 ------------------------ ----------------------- 119,608 82,428 339,351 340,167 Expenses (income) Selling, general and administrative 184,450 158,386 621,992 584,530 Patent litigation & re-examination expenses - 88,916 16,542 88,916 Research and development 183,245 197,086 583,566 593,192 Interest (216) (16,513) (4,591) (74,419) Depreciation and amortization 3,113 1,388 9,338 4,209 ------------------------ ----------------------- 370,591 429,263 1,226,847 1,196,428 ------------------------ ----------------------- ------------------------------------------------------------------------- Loss for the period and comprehensive loss (250,983) (346,835) (887,496) (856,261) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Loss per common share Basic $ (0.005) $ (0.007) $ (0.017) $ (0.017) Diluted $ (0.005) $ (0.007) $ (0.017) $ (0.017) Weighted average number of common shares Basic 51,403,507 51,645,482 51,554,618 51,400,457 Diluted 51,403,507 51,645,482 51,554,618 51,400,457 01 Communique Laboratory Inc. Consolidated Statements of Cash Flows (Unaudited) For the 3 and 9 month periods ended July 31, 2009 and 2008 for the three months for the nine months ending ending July 31, July 31, July 31, July 31, 2009 2008 2009 2008 ------------------------ ----------------------- Cash provided by (used in): Operating activities: Loss for the period $ (250,983) $ (346,835) $ (887,496) $ (856,261) Items not involving cash: Depreciation and amortization 3,113 1,388 9,338 4,209 Stock-based compensation 2,598 1,750 88,334 9,125 Change in non-cash working capital 5,445 225,887 (92,424) 24,999 ------------------------ ----------------------- (239,827) (117,810) (882,248) (817,928) Financing activities: Issue of common shares - 13,000 - 175,561 Investing activities: Purchase of capital assets (898) (1,464) (3,023) (16,933) Increase (decrease) in cash (240,725) (106,274) (885,271) (659,300) Cash and cash equivalents, beginning of period 1,330,112 2,333,244 1,974,658 2,886,270 ------------------------ ----------------------- Cash and cash equivalents, end of period $ 1,089,387 $ 2,226,970 $ 1,089,387 $ 2,226,970 ------------------------ ----------------------- ------------------------ ----------------------- 

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