Diversinet Reports Second Quarter 2011 Financial Results
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.
| Q2 2011 | Q2 2010 | ||
| 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 common shares outstanding | 42,503,921 | 47,721,191 | |
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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