TORONTO, April 27, 2012 /PRNewswire/ - Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF), a leader in secure mobile health that "Powers Care Coordination through Mobility," reported its first quarter 2012 results for the period ended March 31, 2012. All dollar amounts are in U.S. dollars.

Financial Highlights

Revenues for the first quarter were $282,000, compared to $444,000 in the same period a year ago. Revenues in the first quarter of 2012 included $185,000 from the company's license and reseller agreement with Mihealth Global Systems ("Mihealth") while revenues in the first quarter of 2011 included $382,000 from Mihealth. Deferred revenues for the first quarter were $317,000, compared to $57,000 in the same period a year ago.

Net loss in the first quarter was $1.4 million or $(0.03) per share, compared to $1.1 million or $(0.03) per share in the same period a year ago. First quarter 2012 net loss included non-cash items of $135,000 in stock-based compensation, $15,000 in depreciation, and a foreign exchange loss of $7,000. This compares to non-cash items in the same year-ago quarter of $166,000 in stock-based compensation, $14,000 in depreciation, and a foreign exchange gain of $25,000.

Cash and cash equivalents were $6.2 million at March 31, 2012 and $7.4 million at December 31, 2011.

Operational Highlights

        --  Dr. Hon Pak was appointed Chief Executive Officer and member of
            the company's board of directors after serving as interim CEO
            since December 2011 and on Diversinet's executive advisory
            board since September 2011.
        --  The company delivers a secure technology platform that supports
            healthcare coordination through mobility. Components of the
            technology include a Care Coordination Engine, providing a
            "configure once-deploy many" capability for clients who need a
            HIPAA-compliant mobile engagement tool for consumers/patients
            and providers/staff.
        --  During April, 2012 the ehealth radio network interviewed Dr.
            Pak where he addressed issues in the telehealth space and
            provided his views on how Diversinet's solutions can be
            integrated into the mobile heathcare ecosystem.  A link to the
            interview is available at
            www.diversinet.com
            under the 'feature' section.
        --  The University of Nebraska Medical Center (UNMC) started using
            Diversinet's MobiSecure® SDK on a non-commercial basis to
            determine if the SDK could interface with the UNMC's
            preoperative treatment algorithms. Diversinet will provide a
            "sandbox" environment until September 2012 to allow the UNMC to
            gain familiarity with the MobiSecure platform and determine if
            it wants to acquire a commercial software license.
        --  AirStrip Technologies, a leading developer of first-in-class
            mobile technology that enables access to live and actionable
            patient data, selected Diversinet's government-certified
            MobiSecure SDK solution for the crucial security validation
            needed to offer mobile healthcare applications to military and
            other U.S. government agencies. Integrating MobiSecure will
            enable AirStrip applications to provide levels of
            authentication and encryption necessary for use in government
            organizations such as military hospitals.
        --  Diversinet expanded its intellectual property portfolio with
            the award of U.S. patent # 8,130,961, titled "Method and system
            for client-server mutual authentication using event-based OTP."
            This patent defines a method of protecting client-server
            communications and is the foundation of the MobiSecure
            messaging protocol. It provides authentication services through
            the use of one-time passwords (OTPs), and encryption services
            through the use of a unique key per-transaction encryption
            scheme. Diversinet's intellectual property portfolio now
            includes 18 patents and 30 patent applications.

"In the first quarter of 2012, we turned our focus to care coordination," stated Pak. "This field represents a more patient-centered and systems-based approach that improves the value of healthcare, with an emphasis on wellness and prevention. Fundamental to this shift is a focus on patient engagement and care coordination. As we advance through 2012, we expect to enable healthcare organizations to mobilize their care coordination with our leading solutions for secure mobile applications."

Financial Summary


                                                     Q1 2012      Q1 2011

    Revenues                                        $281,911     $444,250

    Cost of revenues                                  19,828        6,031

    Gross margin                                     262,083      438,219

                                                                         

    Expenses                                                             

     Research and development                        791,012      716,059

     Sales and marketing                             331,684      412,783

     General and administrative                      549,697      443,200

     Depreciation                                     14,798       14,409

                                                   1,687,191    1,586,451

    Loss before the undernoted                   (1,425,108)  (1,148,232)

    Foreign exchange gain (loss)                     (6,932)       25,185

    Interest income                                    4,782       12,127

    Loss for the period                         $(1,427,258) $(1,110,920)

    Basic and diluted earnings (loss) per share      $(0.03)      $(0.03)

                                                                         

    Cash and cash equivalents                     $6,170,194  $11,180,694

    Total assets                                  $6,536,720  $11,487,246

    Total current liabilities                       $656,593     $393,148

    Total shareholders' equity                    $5,880,127  $11,094,098

                                                                         

    Weighted average basic and fully diluted      43,009,347   42,325,727
    common shares outstanding

For complete financial statements, including the notes and management's discussion and analysis, please visit our website at www.diversinet.com/AboutUs/Investors.html.

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. MobiSecure is a registered trademark of Diversinet Corp.  

SOURCE Diversinet Corp.