DIVERSINET : Reports Second Quarter 2011 Financial Results
08/03/2011| 09:20am US/Eastern
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TORONTO, Aug. 3, 2011 /PRNewswire/ - Diversinet Corp. (TSX Venture: DIV, OTCBB:
DVNTF), a leader in "connected and protected" mobile healthcare
communications, reported its second quarter 2011 results for the period
ended June 30, 2011. All dollar amounts are in U.S. dollars.
Financial Highlights
Revenues for the second quarter of 2011 were $132,000, compared to $3.9
million in the same period a year ago. Revenues for the six months
ended June 30, 2011 were $576,000, compared to $4.4 million in the same
period in 2010. Revenues in the quarter ended June 30, 2010 included
$3.4 million from the AllOne settlement agreement, and $330,000 from a
license and VAR agreement.
Net loss in the second quarter was $1.7 million or $(0.04) per share,
compared to net income of $5.3 million or $0.11 per share in the same
period a year ago. Net loss for the six months ended June 30, 2011 was
$2.8 million, or $(0.07) per share, compared to net income of $4.3
million or $0.09 per share in the similar six months of 2010.
Included in the second quarter net income was non-cash stock-based
compensation and depreciation of $202,000 versus $159,000 in Q2 2010
and a foreign exchange gain of $5,000 versus a $210,000 loss in Q2
2010. In 2010, the Company recognized other income of $3.6 million
from the settlement agreement.
Cash and cash equivalents at June 30, 2011 were $9.8 million and $12.5
million at December 31, 2010.
Operational Highlights
-- In June 2011, one of the largest U.S. pharmaceutical companies
licensed MobiSecure® mHealth platform for a pilot to improve
medication utilization and consumer interaction. Additional use
cases will be incorporated to support new commercial product
launches.
-- During the second quarter of 2011, the Company advanced key
elements of its mobile health strategy. This strategy includes
introducing new products and product enhancements, creating
customized mobile health applications, and expanding its
network of healthcare partners.
-- Alan Portela, a mHealth strategist and innovator, joined the
company's Board of Directors. Mr. Portela will also serve as
chairman of a newly formed Diversinet Executive Advisory Board.
Mr. Portela has more than 25 years experience as an IT
strategist and executive. He is currently CEO of AirStrip
Technologies and a board member for CliniComp, Intl., and
serves as an adviser to InTouch Health and Accenture. The
consulting firm founded by Mr. Portela, Hybrid Clinical
Transformation LLC, also has been retained by Diversinet to
provide sales and business development services.
"In the second quarter of 2011, we continued to develop and market our
proven secure mobile solutions in the rapidly growing wireless health
and mHealth marketplace," said Albert Wahbe, Diversinet's chairman and
CEO. "We've made substantial inroads during the quarter, including the
formation of a number of key relationships."
"In the second half of 2011, we expect more doors to open to us, as we
continue to benefit from the strengthening, widespread market demand
for the secure mobilization of health information, driven by the clear
economics for healthcare organizations."
Financial Summary
Effective for the 2010 fiscal year, the company has adopted U.S.
generally accepted accounting principles ("U.S. GAAP") for the
presentation of its consolidated financial statements for Canadian and
U.S. reporting requirements, and in this release has restated
comparative historical periods accordingly.
Q22011 Q22010
Revenues $132,108 $3,856,460
Cost of revenues 30,744 993
Gross margin 101,364 3,855,467
Expenses
Research and development 734,971 970,172
Sales and marketing 482,880 387,315
General and administrative 559,605 534,243
Depreciation 16,216 16,276
1,793,672 1,908,006
Income (loss) before the undernoted (1,692,208) 1,947,461
Foreign exchange gain (loss) 4,673 (210,332)
Interest income 26 12,036
Other income - 3,560,707
Net income (loss) for the period $(1,687,609) $5,309,872
Basic and diluted earnings (loss) per share $(0.04) $0.11
Cash and cash equivalents $9,790,920 $14,524,336
Total assets $10,159,955 $14,763,853
Total current liabilities $568,038 $616,545
Total shareholders' equity $9,591,917 $14,147,308
Weighted average basic and fully diluted 42,503,921 47,721,191
common shares outstanding
For complete financial statements, including the notes and management's
discussion and analysis, please visit the investors section on the
company's website at www.diversinet.com/AboutUs/Investors.html.
About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) provides a patented
and proven secure application platform that enables healthcare
organizations to rapidly deploy HIPAA-compliant mobile healthcare
(mHealth) applications to anyone, anytime, anywhere. Diversinet's
MobiSecure(® )platform helps meet the growing needs for safe, convenient, on-the-go
storage and sharing of personal health data. Connect with Diversinet
Corp. at www.diversinet.com. Its tagline is "Healthcare. Connected and Protected."
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. MobiSecure
is a registered trademark of Diversinet Corp.
SOURCE Diversinet Corp.
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