Mr. Andrew Cheung reports
01 COMMUNIQUE REPORTS RESULTS FOR THIRD QUARTER FISCAL 2013
01 Communique Laboratory Inc. has released results for its
third quarter 2013 which ended July 31, 2013. The loss for the third
quarter 2013 was $584,941 compared with $697,693 in 2012, a decrease of
$112,852. Excluding non-cash expenses for stock-based compensation and
depreciation the adjusted loss for the third quarter 2013 was $235,187
compared with $271,456 in 2012. The company completed the quarter with
$3,566,150 of cash and cash equivalents.
"The cash operating expenses to run our business, excluding the costs
associated with intellectual property revenue, were reduced for the
third quarter to approximately $400,000," said Andrew Cheung, president
and chief executive officer for 01 Communique. "Reducing expenses to this level still
allowed us to continue with development of a competitive product
offering and continue to vigorously defend our intellectual property
rights against LogMeIn Inc. and Citrix Systems Inc. Going forward, we
will continue with these two main 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 Systems Inc. appeal of the results
of the inter partes re-examination of the company's United States patent No. 6,928,479 which Citrix had requested. The company is now
waiting for the PTAB to render its written report. The company is confident
in the merits of its case and believes the PTAB will uphold the validity
of the 479 patent. Previously the jury in the LogMeIn lawsuit upheld
the validity of the 479 patent as did the USPTO patent examiner in the
right of appeal notice (RAN) and the examiner's report filed last
year as part of the appeal process.
LogMeIn appeal update
The company disagrees with the jury's finding of non-infringement in the LogMeIn
Inc. case and, as previously announced, on June 26, 2013, the company filed a notice of appeal with the United States Court of Appeal for the
Federal Circuit (appeal No. 2013-1479). LogMeIn has filed a cross
appeal (case No. 2013-1525) in respect of the court order concluding
that the company's patent was valid and enforceable. Its cross appeal has been
consolidated with the company's appeal. As part of the appeal process the company filed
its appeal brief with the Federal Circuit on Aug. 26, 2013. The company is confident in the merits of its appeal.
Revenue for the third quarter 2013 was $729,860 compared with $582,440 for
the same period in 2012, an increase of $147,420, primarily a result of
increased revenue from licensing intellectual property. Revenue from
intellectual property for the third quarter 2013 was $669,500 (2012 --
Cash operating expenses which exclude stock-based compensation and
depreciation were $965,254 for the third quarter 2013 compared with $857,185 in 2012 an increase of $108,069 primarily a result of an
increase in expenses relating to intellectual property revenue.
Excluding expenses related to intellectual property revenue of $568,442
(2012 -- $425,000), cash operating expenses for the third quarter 2013
were $396,812 compared with 2012 of $432,185, a reduction of $35,373.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the three months ending July 31, For the nine months ending July 31,
2013 2012 2013 2012
Revenue $729,860 $582,440 $1,096,299 $753,812
Cost of revenue - 38 - 261
729,860 582,402 1,096,299 753,551
and administrative 530,394 614,430 1,306,409 1,622,145
Patent enforcement and
re-examination expenses 568,442 425,000 1,965,542 425,000
Research and development 216,172 244,092 657,864 737,567
Interest (loss) (207) (3,327) (19,067) (12,221)
1,314,801 1,280,195 3,910,748 2,772,491
(Loss) for the period
and comprehensive (loss) (584,941) (697,793) (2,814,449) (2,018,940)
(Loss) per common share
Basic (loss) (0.009) (0.012) (0.043) (0.033)
Diluted (loss) (0.009) (0.012) (0.043) (0.033)
We seek Safe Harbor.
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