Diversinet Corp. Reports Fourth Quarter and Fiscal 2011 Results
TORONTO, Feb. 28, 2012 /PRNewswire/ - Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF), a leader in secure mobile health that "Powers Care Coordination through Mobility", reported its fourth quarter and fiscal 2011 results for the period ended December 31, 2011. All dollar amounts are in U.S. dollars.
"In 2011, Diversinet made substantial strides in advancing the market adoption of our secure mobile solutions in the growing wireless health and mHealth marketplace," said Dr. Hon Pak, Diversinet's CEO. "This was demonstrated in events and milestones that were both significant and wide ranging."
Q4 and Fiscal 2011 Financial Highlights
Revenues for the fourth quarter were $382,000 compared to $106,000 in the same year-ago period. Revenues for the full year were $1.3 million, compared to $4.9 million in 2010. Revenues in 2010 included $3.7 million from AllOne Mobile Corporation ("AllOne") relating to a termination of a prior agreement.
Net loss for the fourth quarter was $1.7 million or $(0.04) per share, compared to $1.5 million or $(0.04) per share the year-ago quarter. The net loss in the fourth quarter 2011 included non-cash items of $154,000 in stock-based compensation expense, $16,000 in depreciation, and a foreign exchange loss of $52,000. This compares with non-cash items in the year-ago quarter of $129,000 in stock-based compensation and $17,000 in depreciation, and a foreign exchange gain of $91,000.
Net loss for the year was $5.5 million or $(0.13) per share, compared to net income of $1.9 million or $0.04 per share in 2010. Included in the full-year net income were non-cash items $670,000 in stock-based compensation, $63,000 in depreciation, and a foreign exchange loss of $32,000. This compares with non-cash items in 2010 of $3.1 million related to the canceled shares from AllOne, $659,000 in stock-based compensation, $66,000 in depreciation, and a foreign exchange gain of $190,000.
Cash and cash equivalents totaled $7.4 million at December 31, 2011, as compared to the previous year's balance of $12.5 million.
2011 Operational Highlights
- Based on the strong results from the Mihealth™ pilot program with its subscription based patient health record (PHR) system, Diversinet began 2011 by signing a five-year, $5 million Canadian reseller agreement with Mihealth Global Systems, Inc. for its MobiSecure® platform. This relationship enabled Diversinet to focus on the large opportunities in the U.S.
- In March, Diversinet released a Clinical Communicator application, which incorporates the power and unique functionality of its field-proven MobiSecure Publisher and MobiSecure SMS. Clinical Communicator enables physicians, nurses and other clinicians to communicate securely with their patients via mobile devices and tablets.
- Another successful pilot program led Johnson & Johnson Pharmaceutical Research and Development to license MobiSecure. This deployment involved new features developed for consumer interaction, which demonstrated how MobiSecure's turnkey capability can provide full customization without undergoing extensive product development and testing, and while also maintaining feature flexibility, security and customer branding.
- In September, the U.S. Army's Telemedicine and Advanced Technology Research Center renewed its annual contract with Diversinet to support the Army's mCare telehealth outreach program. The program was established for members of the military recovering from mild traumatic brain injuries and other wounds. The mCare mobile health application, powered by MobiSecure, also received the '2010 Army Greatest Inventions Award,' representing the most innovative advances in Army technology.
- Diversinet enhanced its intellectual property portfolio with the award of a U.S. patent for an encryption method that addresses growing concerns about protecting sensitive personal data stored on a mobile device. This technology prevents unauthorized access to data via encryption and protects information if it is transferred to another mobile device.
- In December, Diversinet reached an important milestone in an extensive security validation process for the cryptographic modules used by its MobiSecure® mHealth application, with a formal listing in the "Federal Information Processing Standards Publication (FIPS) 140-2" publication. This listing is critical for government agencies, medical device manufacturers and pharmaceutical companies that require absolute security in safeguarding personal health information.
In February 2012, the company's board of directors appointed Hon Pak CEO, succeeding Albert Wahbe. The board believes his leadership will continue to be important to Diversinet's success in the healthcare marketplace.
"As the mHealth market continues to evolve in 2012, we remain focused on the key elements of our mobile health strategy, which include introducing new products and product enhancements, creating customized portals to support mobile health applications, and expanding our network of healthcare partners and infield deployments," said Pak. "I believe that healthcare is becoming unsustainable, and changes are now in place that will impact the landscape of how healthcare will be delivered. We believe that by focusing on care coordination through mobility, our products can help coordinate and manage all of a patient's care."
About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) provides patented and proven secure products that enable healthcare organizations to rapidly deploy HIPAA-compliant mobile healthcare (mHealth) applications to power care coordination. Learn more about Diversinet at www.diversinet.com.
The Private Securities Litigation Reform Act of 1995 and Canadian securities laws provide a "safe harbour" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to the success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission available at www.sec.gov and Canadian securities regulatory authorities available at www.sedar.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
| DIVERSINET CORP. | ||||||
| Consolidated Balance Sheets | ||||||
| (In United States dollars) | ||||||
| As at December 31 | 2011 | 2010 | ||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 7,397,025 | $ | 12,458,750 | ||
| Accounts receivable, net | 287,155 | 75,150 | ||||
| Prepaid expenses | 64,252 | 52,773 | ||||
| Total current assets | 7,748,432 | 12,586,673 | ||||
| Property and equipment, net | 207,301 | 180,983 | ||||
| Total assets | $ | 7,955,733 | $ | 12,767,656 | ||
| Liabilities and Shareholders' Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 217,539 | $ | 143,253 | ||
| Accrued liabilities | 281,011 | 562,994 | ||||
| Deferred revenue | 284,583 | 45,167 | ||||
| Total current liabilities | 783,133 | 751,414 | ||||
| Shareholders' equity: | ||||||
| Share capital: | ||||||
| Authorized: | ||||||
| Unlimited common shares | ||||||
| Issued and outstanding: | ||||||
| 43,009,347 (42,285,171 - 2010) common shares | 85,848,861 | 85,583,198 | ||||
| Additional paid-in capital | 19,755,623 | 19,346,409 | ||||
| Share purchase warrants | 39,318 | 21,242 | ||||
| Deficit | (96,950,481) | (91,413,886) | ||||
| Accumulated other comprehensive income: | ||||||
| Cumulative translation adjustment | (1,520,721) | (1,520,721) | ||||
| Total shareholders' equity | 7,172,600 | 12,016,242 | ||||
| Total liabilities and shareholders' equity | $ | 7,955,733 | $ | 12,767,656 | ||
| DIVERSINET CORP. | ||||||
| Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) | ||||||
| (In United States dollars) | ||||||
| For the year ended December 31 | 2011 | 2010 | 2009 | |||
| Revenues | $ | 1,291,714 | $ | 4,931,834 | $ | 7,972,929 |
| Cost of revenues | 104,600 | 22,860 | 175,138 | |||
| Gross margin | 1,187,114 | 4,908,974 | 7,797,791 | |||
| Expenses: | ||||||
| Research and development | 2,927,551 | 3,112,225 | 3,351,742 | |||
| Sales and marketing | 1,664,996 | 1,783,211 | 1,448,000 | |||
| General and administrative | 2,058,702 | 1,888,908 | 2,326,380 | |||
| Depreciation | 62,967 | 65,788 | 75,559 | |||
| 6,714,216 | 6,850,132 | 7,201,681 | ||||
| Income (loss) before the undernoted: | (5,527,102) | (1,941,158) | 596,110 | |||
| Foreign exchange gain (loss) | (31,662) | 190,448 | 1,253,375 | |||
| Interest income, net | 22,169 | 57,277 | 61,314 | |||
| Other income | - | 3,560,707 | - | |||
| Net income (loss) for the year and comprehensive net income (loss) |
(5,536,595) | 1,867,274 | 1,910,799 | |||
| Basic and diluted earnings (loss) per share | $ | (0.13) | $ | 0.04 | $ | 0.04 |
| Weighted average common shares outstanding | 42,587,632 | 45,029,121 | 47,191,669 | |||
| Weighted average fully diluted common shares outstanding |
42,587,632 | 45,029,121 | 47,295,515 | |||
| DIVERSINET CORP. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (In United States dollars) | ||||||||
| For the year ended December 31 | 2011 | 2010 | 2009 | |||||
| Cash provided by (used in): | ||||||||
| Operating activities: | ||||||||
| Net income (loss) for the year | $ | (5,536,595) | $ | 1,867,274 | $ | 1,910,799 | ||
| Items not involving cash: | ||||||||
| Depreciation | 62,967 | 65,788 | 75,559 | |||||
| Foreign exchange gain | (31,699) | (167,297) | (1,151,363) | |||||
| Other income | - | (3,060,707) | - | |||||
| Stock-based compensation expense | 669,952 | 658,991 | 1,195,570 | |||||
| Changes in non-cash working capital: | ||||||||
| Accounts receivable | (212,005) | 4,567 | (79,717) | |||||
| Prepaid expenses | (11,479) | (17,591) | 22,164 | |||||
| Accounts payable | 74,286 | (5,278) | (19,547) | |||||
| Accrued liabilities | (258,982) | 266,738 | (215,706) | |||||
| Deferred revenue | 239,416 | (88,833) | (2,512,356) | |||||
| Cash used in operations | (5,004,139) | (476,348) | (774,597) | |||||
| Financing activities: | ||||||||
| Issue of common shares for cash | - | 128,604 | 254,075 | |||||
| Cash provided by financing activities | - | 128,604 | 254,075 | |||||
| Investing activities: | ||||||||
| Purchase of property and equipment | (89,285) | (28,645) | (38,421) | |||||
| Cash used in investing activities | (89,285) | (28,645) | (38,421) | |||||
| Foreign exchange gain on cash held in foreign currency | 31,699 | 167,297 | 1,151,363 | |||||
| Net increase (decrease) in cash and cash equivalents | (5,061,725) | (209,092) | 592,420 | |||||
| Cash and cash equivalents, beginning of year | 12,458,750 | 12,667,842 | 12,075,422 | |||||
| Cash and cash equivalents, end of year | $ | 7,397,025 | $ | 12,458,750 | $ | 12,667,842 | ||
| Supplemental cash flow information: | ||||||||
| Interest received | 22,169 | 57,277 | 61,314 | |||||
| Supplemental disclosure relating to non-cash financing and investing activities: | ||||||||
| Issuance of shares to employees and Board | 265,663 | 284,750 | 414,188 | |||||
| Cash and cash equivalents is comprised of: | ||||||||
| Cash | 253,715 | 443,684 | 563,471 | |||||
| Cash equivalents | 7,143,310 | 12,015,066 | 12,104,371 | |||||
| $ | 7,397,025 | $ | 12,458,750 | $ | 12,667,842 | |||
SOURCE Diversinet Corp.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article