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Last updated on April 16, 2014 at 10:52 EDT

Diversinet Reports First Quarter 2013 Financial Results

April 26, 2013

TORONTO, April 26, 2013 /PRNewswire/ – Diversinet Corp. (TSX Venture: DIV,
OTCQB: DVNTF), a leader in secure mobile health that “Powers Care
Coordination through Mobility,” reported its first quarter 2013 results
for the period ended March 31, 2013. All dollar amounts are in U.S.
dollars.

Financial Highlights
Revenues for the first quarter were $304,000, compared to $282,000 in
the same period a year ago. Deferred revenues for the first quarter
were $110,000, compared to $134,000 in the same period a year ago.

Net loss in the first quarter was $989,000 or $(0.02) per share,
compared to $1.4 million or $(0.03) per share in the same period a year
ago. First quarter 2013 net loss included non-cash items of $65,000 in
stock-based compensation, $10,000 in depreciation, and a foreign
exchange loss of $20,000. This compares to non-cash items in the same
year-ago quarter of $135,000 in stock-based compensation, $15,000 in
depreciation, and a foreign exchange loss of $7,000.

Cash and cash equivalents were $2.3 million at March 31, 2013 and $3.2
million at December 31, 2012.

Operational Highlights

        --  In February 2013, Diversinet enhanced its
            mobiPublisher(TM)
            application platform with its Version 4.7 release.  The
            platform provides a unified framework for developing and
            managing secure, enterprise-wide mobile healthcare
            applications.  mobiPublisher Version 4.7 includes new features
            that healthcare organizations, health information exchanges,
            payers and large employers have requested.  These features
            facilitate secure collection, integration, sharing and analysis
            of patient profiles, preferences, care plans, and biometric and
            other data. The enhancements make it easier for healthcare
            enterprises to improve mobile patient engagement and care
            coordination.

        --  During Q2 2013, two key mobile security patents by the United
            States Patent and Trademark Office and the Canadian
            Intellectual Property Office were granted.  The patents expand
            Diversinet's intellectual property portfolio to 22 granted and
            26 pending patents.
            U.S. patent # 8,341,712,
            "Method and System for Authenticating a User of a Mobile
            Device," provides convenient new options for enabling
            multi-factor authentication.  This technology enables patients
            to use their phones as part of multi-factor authentication for
            remote access to personal health information.  This is in line
            with U.S. government standards proposed to take effect in 2015
            with Stage 3 of the HITECH Act's meaningful use incentive
            program.
            Canadian patent # 2,665,961,
            "Method and System for Delivering a Command to a Mobile
            Device," enables solutions that help enterprises ensure
            security and productivity amid the bring-your-own-device (BYOD)
            trend, including the emerging mobile wallet, or container,
            architecture.

        --  During Q4 2012, Diversinet undertook an initial cost reduction
            plan that saw costs reduced by $750,000 on an annual basis.
            During April 2013, Diversinet undertook another cost reduction
            plan that saw costs reduced by $500,000 on an annual basis,
            bringing the recent cost reductions to $1.25 million on an
            annual basis. Diversinet is considering further cost reduction
            measures as well as strategic alternatives.

Financial Summary


                                                     Q1 2013        Q1 2012

    Revenues                                        $303,612       $281,911

    Cost of revenues                                  24,237         19,828

    Gross margin                                     279,375        262,083

    Expenses                                                               

      Research and development                       456,827        791,012

      Sales and marketing                            269,092        331,684

      General and administrative                     513,526        549,697

      Depreciation                                    10,358         14,798

                                                   1,249,803      1,687,191

    Loss before the undernoted                     (970,428)    (1,425,108)

    Foreign exchange gain (loss)                    (19,544)        (6,932)

    Interest income                                      944          4,782

    Loss for the period                           $(989,028)   $(1,427,258)

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

    Cash and cash equivalents                     $2,279,970     $6,170,194

    Total assets                                  $2,750,804     $6,536,720

    Total current liabilities                       $580,655       $656,593

    Total shareholders' equity                    $2,169,449     $5,880,127

    Weighted average basic and fully diluted      43,496,847     43,009,347
    common shares outstanding

For complete financial statements, including the notes and management’s
discussion and analysis, please visit our website at www.diversinet.com/financial-reports.html. The unaudited financial statements have not been reviewed by
Diversinet’s auditor.

About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCQB: DVNTF) provides healthcare
organizations and partners with ultra-secure, patented mobile
technologies and connected health solutions. The company’s core
publishing platform supports rapid deployment of secure and
HIPAA-compliant Web-to-mobile applications. Diversinet solutions lead
with an innovative, virtual health wallet designed for patient-centric
engagement to improve care coordination, health outcomes and
resilience. 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, including the uncertainty of the company to
continue as a going concern, 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.


Source: PR Newswire