TORONTO, April 29 /PRNewswire-FirstCall/ - Diversinet Corp. (TSXV: DIV), (OTCBB: DVNTF), a leader in "connected and protected" mobile healthcare communications, reported its first quarter 2011 results for the period ended March 31, 2011. All dollar amounts are in U.S. dollars.

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.

Financial Highlights
Revenues for the first quarter were $444,000, compared to $576,000 in the same period a year ago. Revenues in the first quarter of 2011 included $382,000 from the company's license and reseller agreement with Mihealth Global Systems while revenues in the first quarter of 2010 included $346,000 from the company's license and VAR agreement with Intersections, Inc., (Nasdaq: INTX) a global provider of consumer and corporate identity risk management services.

Net loss in the first quarter was $1.1 million or $(0.03) per share, compared to $1.0 million or $(0.02) per share in the same period a year ago. First quarter 2011 net loss included non-cash items of $189,000 in stock-based compensation, $14,000 in depreciation, and a foreign exchange gain of $25,000. This compares to non-cash items in the same year-ago quarter of $223,000 in stock-based compensation, $16,000 in depreciation, and a foreign exchange gain of $188,000.

Cash and cash equivalents at March 31, 2011 were $11.2 million and $12.5 million at December 31, 2010.

Operational Highlights

        --  During the first quarter the company remained focused on the
            key elements of its mobile health strategy, which includes
            introducing new products and product enhancements, creating
            customized mobile health applications, and expanding its
            network of healthcare partners.

        --  Based on the strong progress of its Mihealth pilot program, in
            January, the company entered into a five-year, $5 million
            exclusive Canadian reseller agreement with Mihealth Global
            Systems for our MobiSecure health solutions. This new
            relationship, subject to certain termination rights, enables
            the company to focus on the large opportunities in the U.S.,
            while Mihealth serves Canada and other international markets.
            Under the new agreement, Mihealth will initially make the
            solution tested in North Bay available to medical clinics in
            Ontario, then eventually throughout Canada.

        --  Diversinet's board of directors renewed CEO Wahbe's employment
            agreement for an additional year (until March 31, 2012). The
            board believes his leadership will continue to be important to
            Diversinet's success in the healthcare marketplace.

        --  In February, Diversinet announced enhancements to the
            MobiSecure Platform with more than 50 new features. The
            improvements also extend support to 70 additional smart phones
            and tablets, strengthen security compliance and enable faster
            deployment.

        --  In March, the company introduced Clinical Communicator, a new
            application that enables secure mobile communication between
            healthcare professionals and patients. It is a HIPAA compliant
            clinical solution that increases clinician productivity and
            enhances patient outcomes.

"In the first quarter of 2011, we continued to leverage our proven secure mobile solutions in the rapidly-growing wireless health and mHealth marketplace, and build upon the strong foundation of accomplishments we made in 2010," stated Albert Wahbe, Diversinet's chairman and CEO.

"As we advance through 2011, we expect more doors to open to us, as we continue to benefit from the strengthening, widespread market demand for the secure mobilisation of health information, driven by the clear economics for healthcare organizations."

Financial Summary


                                                     Q1 2011      Q1 2010

    Revenues                                        $444,250     $575,724

    Cost of revenues                                   6,031       19,704

    Gross margin                                     438,219      556,020

                                                                         

    Expenses                                                             

      Research and development                       716,059      827,854

      Sales and marketing                            412,783      372,361

      General and administrative                     443,200      548,649

      Depreciation                                    14,409       15,705

                                                   1,586,451    1,764,569

    Income (loss) before the undernoted          (1,157,832)  (1,208,549)

    Foreign exchange gain                             25,185      187,856

    Interest income                                   12,127       16,112

    Net income (loss) for the period            $(1,110,920) $(1,004,581)

    Basic and diluted earnings (loss) per share      $(0.03)      $(0.02)

                                                                         

    Cash and cash equivalents                    $11,180,694  $11,913,804

    Total assets                                 $11,487,246  $12,184,670

    Total current liabilities                       $393,148     $441,022

    Total shareholders' equity                   $11,094,098  $11,743,648

                                                                         

    Weighted average basic and fully diluted      42,325,727   48,500,871
    common shares outstanding

For complete financial statements, including the notes and management's discussion and analysis, please visit the investors section on our 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 payers and providers meet 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. 





 




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