Diversinet Reports First Quarter 2013 Financial Results

Apr 26, 2013, 09:25 ET from Diversinet Corp.

TORONTO, April 26, 2013 /PRNewswire/ - Diversinet Corp. (TSX Venture: DIV, OTCQB: DVNTF), a leader in secure mobile health that "Powers Care Coordination through Mobility," reported its first quarter 2013 results for the period ended March 31, 2013. All dollar amounts are in U.S. dollars.

Financial Highlights
Revenues for the first quarter were $304,000, compared to $282,000 in the same period a year ago. Deferred revenues for the first quarter were $110,000, compared to $134,000 in the same period a year ago.

Net loss in the first quarter was $989,000 or $(0.02) per share, compared to $1.4 million or $(0.03) per share in the same period a year ago. First quarter 2013 net loss included non-cash items of $65,000 in stock-based compensation, $10,000 in depreciation, and a foreign exchange loss of $20,000. This compares to non-cash items in the same year-ago quarter of $135,000 in stock-based compensation, $15,000 in depreciation, and a foreign exchange loss of $7,000.

Cash and cash equivalents were $2.3 million at March 31, 2013 and $3.2 million at December 31, 2012.

Operational Highlights

  • In February 2013, Diversinet enhanced its mobiPublisher™ application platform with its Version 4.7 release.  The platform provides a unified framework for developing and managing secure, enterprise-wide mobile healthcare applications.  mobiPublisher Version 4.7 includes new features that healthcare organizations, health information exchanges, payers and large employers have requested.  These features facilitate secure collection, integration, sharing and analysis of patient profiles, preferences, care plans, and biometric and other data. The enhancements make it easier for healthcare enterprises to improve mobile patient engagement and care coordination.

  • During Q2 2013, two key mobile security patents by the United States Patent and Trademark Office and the Canadian Intellectual Property Office were granted.  The patents expand Diversinet's intellectual property portfolio to 22 granted and 26 pending patents.  U.S. patent # 8,341,712, "Method and System for Authenticating a User of a Mobile Device," provides convenient new options for enabling multi-factor authentication.  This technology enables patients to use their phones as part of multi-factor authentication for remote access to personal health information.  This is in line with U.S. government standards proposed to take effect in 2015 with Stage 3 of the HITECH Act's meaningful use incentive program. Canadian patent # 2,665,961, "Method and System for Delivering a Command to a Mobile Device," enables solutions that help enterprises ensure security and productivity amid the bring-your-own-device (BYOD) trend, including the emerging mobile wallet, or container, architecture.

  • During Q4 2012, Diversinet undertook an initial cost reduction plan that saw costs reduced by $750,000 on an annual basis. During April 2013, Diversinet undertook another cost reduction plan that saw costs reduced by $500,000 on an annual basis, bringing the recent cost reductions to $1.25 million on an annual basis. Diversinet is considering further cost reduction measures as well as strategic alternatives.

Financial Summary

       Q1 2013        Q1 2012
Revenues $303,612   $281,911
Cost of revenues 24,237   19,828
Gross margin 279,375   262,083
  Research and development 456,827   791,012
  Sales and marketing 269,092   331,684
  General and administrative 513,526   549,697
  Depreciation 10,358   14,798
  1,249,803   1,687,191
Loss before the undernoted (970,428)   (1,425,108)
Foreign exchange gain (loss) (19,544)   (6,932)
Interest income 944   4,782
Loss for the period $(989,028)   $(1,427,258)
Basic and diluted earnings (loss) per share $(0.02)   $(0.03)
Cash and cash equivalents $2,279,970   $6,170,194
Total assets $2,750,804   $6,536,720
Total current liabilities $580,655   $656,593
Total shareholders' equity $2,169,449   $5,880,127
Weighted average basic and fully diluted common shares outstanding 43,496,847   43,009,347

For complete financial statements, including the notes and management's discussion and analysis, please visit our website at www.diversinet.com/financial-reports.html. The unaudited financial statements have not been reviewed by Diversinet's auditor.

About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCQB: DVNTF) provides healthcare organizations and partners with ultra-secure, patented mobile technologies and connected health solutions. The company's core publishing platform supports rapid deployment of secure and HIPAA-compliant Web-to-mobile applications. Diversinet solutions lead with an innovative, virtual health wallet designed for patient-centric engagement to improve care coordination, health outcomes and resilience. 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, including the uncertainty of the company to continue as a going concern, 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. MobiSecure is a registered trademark of Diversinet Corp.

SOURCE Diversinet Corp.