| June 5, 2013 - 5:00 PM EDT || |
01 Communique Reports Results for Second Quarter Fiscal 2013
TORONTO, June 5, 2013 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX) today announced results for its second quarter 2013 which ended April 30, 2013. The loss for the second quarter 2013 was $1,169,030 compared to $615,312 in 2012 an increase of $553,718 due primarily to the costs incurred for the LogMeIn Inc. ("LogMeIn") patent lawsuit of $688,000. Excluding non-cash expenses for stock-based compensation and depreciation, and the costs of the LogMeIn lawsuit the loss for the second quarter 2013 becomes $378,701 compared to $395,040 in 2012. The Company completed the quarter with $3,803,212 of cash and cash equivalents.
"During the second quarter our patent litigation against LogMeIn concluded with a jury verdict finding our patent was valid but that LogMeIn did not infringe," said Andrew Cheung, President and CEO for 01 Communique. "We disagree with the jury finding of non-infringement and are seeking to have their finding overturned by the district court where the case was heard. We are waiting for the judge to render his decision. Should our efforts in this regard be unsuccessful then we plan to appeal to the United States Court of Appeals for the Federal Circuit. We believe in the merits of our appeal."
"Going forward, our plan is to continue development of our suite of products as we strive to maintain our competitiveness," said Andrew Cheung. "We will also continue to vigorously defend our intellectual property rights as we have been doing against LogMeIn and Citrix Systems Inc. ("Citrix"). We have reduced our operating expenses to conserve our cash resources and at the same time allow us to carry on with these two objectives."
Citrix Litigation Update -
On May 8, 2013 a hearing took place in front of the United States Patent and Trademark Office's ("USPTO") Patent Trial and Appeal Board ("PTAB") in respect of the Citrix appeal of the results of the inter partes re-examination of our United States patent number 6,928,479 ("'479 Patent") which Citrix had requested. The hearing is the last step in the appeal process at the PTAB and we are now waiting for them to render their written report, which we expect to receive within the next few months. We are confident in the merits of our case and believe the PTAB will uphold the validity of the '479 Patent just as the jury did in the LogMeIn lawsuit and the USPTO patent examiner did in the Right of Appeal Notice ("RAN") and the Examiner's Report filed last year as part of the appeal process.
Financial Highlights -
- Operating expenses for the second quarter 2013 were $1,369,785 compared to $722,733 in 2012 an increase of $647,032.
- Cash operating expenses which exclude stock-based compensation and depreciation were $1,267,436 for 2013 compared to $502,461 in 2012 an increase of $764,975. Excluding patent enforcement and re-examination costs, the cash operating expenses for the second quarter 2013 were $449,043 compared to 2012 of $502,461 a reduction of $53,418.
- Cash operating expenses have been further reduced and net of patent enforcement and re-examination costs are expected to be approximately $400,000 for the third quarter 2013.