Diversinet Reports Third Quarter 2009 Financial Results
Revenue Up 9% Year-Over-Year to $1.9 Million
Net Income of $1.1 Million
"We are pleased with our progress during the quarter, as we continued to develop our suite of products and protect our intellectual property by adding to our portfolio of patents," said Albert Wahbe, Diversinet's Chairman and CEO. "Our financial position remains strong, with over
"We are now focused on establishing our distribution network to capitalize on international opportunities in the rapidly emerging mobile sector," added
Q3 2009 Financial Highlights
Revenues for the third quarter increased 9% to
Net income for the third quarter of 2009 increased 661% to
Net income for the nine months ended
Cash and cash equivalents at
2009 Operational Highlights
- Diversinet continued its industry leading innovation in software
based authentication by expanding its offering to include time-based
OTP for its MobiSecure SoftToken. The technology is based on the TOTP
Oath specification. Diversinet's MobiSecure SoftToken is available
for mobile, PC, SMS and as a web browser plugin. It also supports a
wide variety of mobile platforms like J2ME, Blackberry, Windows
Mobile, iPhone and Android. MobiSecure SoftTokens are now available
for both time-based or event based algorithms.
- Diversinet was awarded an additional US Patent No. 7,555,460 entitled
"Payment system and method using tokens". The patent provides a
method for collecting payment over the internet by a third party for
services using secure digital tokens issued by a third party. The new
patent addresses several security and fraud issues related to the use
of credit card payments over the internet. Diversinet's patent
portfolio includes six patents in USA, two patents in Canada and four
patents in Israel and 24 patents applications.
- As part of an equity investment in August 2007, Blue Cross of
Northeastern Pennsylvania ("BCNEPA") has the right to designate one
Board member. William Farrell, who joined BCNEPA as Senior Vice
President, Finance & Enterprise CFO in August 2009 has been appointed
to the Diversinet Board of Directors effective October 29, 2009. Mr.
Farrell has extensive knowledge in the health care industry with
prior experience at Sanofi Pasteur SA. William Reed is retiring from
BCNEPA and therefore Diversinet also announced the departure of
William Reed from the company's Board and thanks him for his
contribution.
About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) is a leading provider of secure application platforms for the mobile world utilizing wireless authentication and access solutions that secure the personal identity, transactions and data of consumers over almost any mobile phone or handheld device. Diversinet's reliable, end-to-end MobiSecure Wallet and Vault products provide global, secure and cost effective applications to mobilize personal health records, financial services transactions and identity protection management. Connect with Diversinet Corp. 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 anticipated future revenues of the company and success of current product offerings and the term of the agreement with AllOne Mobile Corporation. 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.
Diversinet Corp.
CONSOLIDATED BALANCE SHEETS
(in United States dollars)
September 30 December 31
2009 2008
$ $
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(Unaudited)
ASSETS
Current assets
Cash and cash equivalents 12,060,548 12,075,422
Accounts receivable, net (note 2(c)) 93,044 -
Prepaid expenses 32,295 57,346
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Total current assets 12,185,887 12,132,768
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Property and equipment, net (note 4) 227,720 255,264
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Total assets 12,413,607 12,388,032
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 138,327 168,078
Accrued liabilities (note 5) 137,573 511,961
Deferred revenue 12,334 2,646,356
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Total current liabilities 288,234 3,326,395
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Shareholders' equity
Share capital (note 6) 68,251,680 68,099,993
Contributed surplus 8,202,925 7,596,686
Share purchase warrants (note 6) 2,842 13,687
Deficit (62,811,353) (65,128,008)
Accumulated other comprehensive income:
Cumulative translation adjustment (1,520,721) (1,520,721)
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Total shareholders' equity 12,125,373 9,061,637
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Total liabilities and shareholders' equity 12,413,607 12,388,032
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Diversinet Corp.
CONSOLIDATED STATEMENTS OF NET INCOME (LOSS) AND DEFICIT AND
COMPREHENSIVE NET INCOME (LOSS)
(in United States dollars)
(Unaudited)
Three months ended Nine months ended
September 30 September 30
2009 2008 2009 2008
$ $ $ $
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Revenues 1,948,705 1,784,136 5,903,663 2,690,440
Cost of revenues 41,372 154,968 125,800 305,791
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Gross margin 1,907,333 1,629,168 5,777,863 2,384,649
Expenses
Research and
development 742,629 435,773 2,089,588 1,778,844
Sales and
marketing 324,314 491,866 1,083,031 1,388,167
General and
administrative 481,525 569,431 1,393,909 1,541,297
Depreciation and
amortization 18,860 27,216 55,491 79,256
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1,567,328 1,524,286 4,622,019 4,787,564
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Income (loss)
before the
undernoted 340,005 104,882 1,155,844 (2,402,915)
Foreign exchange
gain 731,505 2,558 1,115,283 39,060
Interest income 6,962 34,260 45,528 142,402
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Net income (loss)
for the period
and comprehensive
net income (loss) 1,078,472 141,700 2,316,655 (2,221,453)
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Deficit, beginning
of period (63,889,825) (65,541,828) (65,128,008) (63,178,675)
Net income (loss)
for the period 1,078,472 141,700 2,316,655 (2,221,453)
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Deficit, end of
period (62,811,353) (65,400,128) (62,811,353) (65,400,128)
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Basic and diluted
earnings (loss)
per share 0.02 0.00 0.05 (0.05)
Weighted average
basic common
shares
outstanding 47,181,935 45,650,731 47,107,484 44,026,382
Weighted average
fully diluted
common shares
outstanding
(note 7) 47,380,962 45,650,731 47,200,776 44,026,382
For further information: Company Contact: Diversinet Corp., David Hackett, Chief Financial Officer, (416) 756-2324 ext. 275, [email protected]; Investor Relations U.S: Liolios Group, Inc., Ron Both, Managing Director, (949) 574-3860 ext 1710, [email protected]; Investor Relations Canada: The Equicom Group, Glen Williams or Jeff Codispodi, (416) 815-0700 ext. 272 or ext. 261, [email protected], [email protected]
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