Diversinet Corp. Announces Continued Revenue Growth And Third Quarter Fiscal 2003 Results; Operating cash loss narrows by 38%; Revenue up 800% for first nine months.Business Editors TORONTO--(BUSINESS WIRE)--Sept. 11, 2003 Diversinet Corp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : DVNTF), a leading provider of secured mobile solutions, today announced its third quarter fiscal 2003 results. Revenues for the third quarter of fiscal 2003 were $2,515,000, up from $221,000 in the third quarter of fiscal 2002. For the nine months ended July July: see month. 31, 2003, the Company reported revenue of $6,383,000, compared to revenue of $706,000 for the nine months ended July 31, 2002. The higher revenue was primarily due to the inclusion of DSS (1) (Digital Signature Standard) A National Security Administration standard for authenticating an electronic message. See RSA and digital signature. (2) (Digital Satellite S Software Technologies, which was acquired on January January: see month. 3, 2003. The net loss for the quarter ended July 31, 2003, was $1,065,000, or $(0.18) per share, compared to a net loss for the same quarter in fiscal 2002 of $1,575,000, or $(0.49) per share. The net loss reported for the nine months ended July 31, 2003, was $4,263,000, or $(1.04) per share compared to a net loss of $5,364,000, or $(1.86) in the same period in fiscal 2002. The improved reduction in net loss is due in part to the Company's continued efforts to reduce costs. During the quarter the Company completed a US$3.1 million private placement. Cash used in operating activities was $1,017,000 in the three months ended July 31, 2003, down 38% from the amount used in the same period of the prior year. With the financing completed and the continued efforts to manage costs, the Company is well positioned to achieve profitability and positive cash flow in the future. Subsequent to quarter-end, the Company completed its acquisition of Caradas, Inc. for a combination of common shares and share purchase warrants exercisable over five years. Caradas, founded in 2001, has annual revenues of approximately US$4 million and is currently profitable. Caradas brings a digital identity and transaction management product suite, the Connexus connexus /con·nex·us/ (ko-nek´sus) pl. connex´us [L.] a connecting structure. platform, along with a highly successful security consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" team to the combined company. The addition of Caradas will allow Diversinet to expand and provide an even stronger combination of technology platforms, mobile security solutions, and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. to its tier one customers. It also accelerates Diversinet's push into the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and U.S. government sectors, by enhancing Diversinet's existing technology solutions, and strengthening its development team. During the third quarter, the Company appointed Derek Derek is a male name of English and Old German origin, possibly derived from the Old German Theodoric,[1] meaning power of the tribe or ruler of the people. Buntain to its Board of Directors. He is the President of The Dundee Dundee, city (1991 pop. 172,294) and council area, E central Scotland, on the Firth of Tay. It is a port and manufacturing city. Dundee is historically known for its manufacture and processing of jute. Its marmalade is also famous. Bank and holds seats on a number of boards. Mr. Buntain brings a wealth of experience in corporate finance, mergers and acquisitions and international business. Diversinet launched Passport passport Document issued by a national government identifying a traveler as a citizen with a right to protection while abroad and a right to return to the country of citizenship. It is normally a small booklet containing a description and photograph of the bearer. SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. Messenger(TM) solution which connects Internet-enabled applications and mobile phones using SMS technology, and announced an agreement with Arcot Arcot (är`kŏt), town, Tamil Nadu state, SE India, on the Palar River. It is an agricultural market and has a weaving industry. It became the capital of the Muslim Nawab of Karnataka in 1712. Systems Inc. to develop and co-market systems for mobile authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. of online credit card transactions. By integrating Arcot's TransFort(TM) e-payments authentication product suite, Passport SMS Messenger further extends the TransFort platform by adding support for SMS wireless access. The combined solution provides bank card issuers with a new mobile device channel for delivering Verified by Visa Verified by Visa is a system used by Visa as an added layer of security for online credit and debit cards transactions. A similar system is used by MasterCard under the name SecureCode (which is completely separate from verified by Visa, although it uses the same protocol). (R) and MasterCard MasterCard Worldwide (NYSE: MA) is a mutinational corporation based in Purchase, NY in the United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "Mastercard" branded debit- and (R) SecureCode(R) online credit card transactions. Diversinet's advanced wireless security solutions provide technologies electronically that verify (1) To prove the correctness of data. (2) In data entry operations, to compare the keystrokes of a second operator with the data entered by the first operator to ensure that the data were typed in accurately. See validate. and authenticate (1) To verify (guarantee) the identity of a person or company. To ensure that the individual or organization is really who it says it is. See authentication and digital certificate. (2) To verify (guarantee) that data has not been altered. each party involved in a mobile transaction. During the quarter, Diversinet licensed its mobile security software to the Edvance Limited for use in a secure Fleet and Workforce Management Workforce Management (WFM) encompasses all the responsibilities for maintaining a productive and happy workforce. Sometimes referred to as HRMS systems, or even the larger ERP systems (Oracle, PeopleSoft, SAP). There are many software vendors within this space. System in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. with location-based technology. Additionally, Edvance Limited will become an authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. of Diversinet's mobile security solution in the Asia Pacific region. Diversinet's systems integration subsidiary, DSS Software, entered into new product and project development agreements in the third quarter with Men's Warehouse, a North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. retailer of men's clothing; Williams-Sonoma Williams-Sonoma, Inc. (NYSE: WSM) is an American company that sells specialty cooking utensils and other housewares, along with a variety of foods including gourmet coffees. Its principal office is in San Francisco, California. , a nationwide retailer of products for the home; Cisco, a worldwide leader in networking for the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the ; Merador LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a provider of business intelligence software solutions; SNAPFISH, a leading online photo service; and Digital Globalsoft, a Hewlett-Packard See HP. Hewlett-Packard - (HP) Hewlett-Packard designs, manufactures and services electronic products and systems for measurement, computation and communications. The company's products and services are used in industry, business, engineering, science, medicine and company that is focused on software development and IT services. About Diversinet Corp. Diversinet is a leading provider of secured mobile solutions to the enterprise, financial services, and gaming and wagering wa·ger n. 1. a. An agreement under which each bettor pledges a certain amount to the other depending on the outcome of an unsettled matter. b. A matter bet on; a gamble. 2. marketplaces. With demonstrated expertise in wireless and security, Diversinet delivers secure, reliable and scalable mobile solutions through security products and professional services such as application development and integration, consulting, training and technical support. Diversinet enables customers and their employees to securely access applications and critical corporate information from anywhere, at anytime and via any mobile device. Diversinet is headquartered in Toronto, Canada, with offices in Fremont, California For the unincorporated community in Yolo County, California, see . Fremont (IPA: /ˈfriːmɒnt/) is a city in California that was incorporated on January 23, 1956, from the merger of five smaller communities: ; Braintree, Massachusetts For geographic and demographic information on the census-designated place Braintree, please see the article Braintree (CDP), Massachusetts. Braintree is a town in Norfolk County, Massachusetts, United States. The population was 33,828 at the 2000 census. ; Hong Kong; and London, England. For more information visit www.diversinet.com. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc anticipated future revenues of the company and 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.
DIVERSINET CORP.
CONSOLIDATED BALANCE SHEETS
(in Canadian dollars)
July 31 October 31
2003 2002
$ $
--------------------------------------------------------------------
(Unaudited)
ASSETS
Current
Cash and cash equivalents 520,901 953,272
Short-term investments 3,482,618 2,887,352
Accounts receivable 1,638,914 416,070
Other receivables 139,207 24,952
Prepaid expenses 273,818 120,608
--------------------------------------------------------------------
Total current assets 6,055,458 4,402,254
--------------------------------------------------------------------
Capital assets, net 1,269,387 1,877,012
Goodwill 1,446,397 -
--------------------------------------------------------------------
Total assets 8,771,242 6,279,266
--------------------------------------------------------------------
--------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable 1,170,306 551,306
Accrued liabilities 1,610,270 1,093,352
Current portion of promissory note 420,000 -
Current portion of notes payable 14,455 -
Deferred revenue 56,276 14,452
--------------------------------------------------------------------
Total current liabilities 3,271,307 1,659,110
--------------------------------------------------------------------
Promissory note 420,000 -
--------------------------------------------------------------------
Total liabilities 3,691,307 1,659,110
--------------------------------------------------------------------
Shareholders' equity
Share capital 63,090,916 58,957,962
Share purchase warrants 589,824 -
Contributed surplus 97,500 97,500
Deficit (58,698,305) (54,435,306)
--------------------------------------------------------------------
Total shareholders' equity 5,079,935 4,620,156
--------------------------------------------------------------------
Total liabilities and
shareholders' equity 8,771,242 6,279,266
--------------------------------------------------------------------
--------------------------------------------------------------------
DIVERSINET CORP.
CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
(in Canadian dollars)
Three and nine months
ended July 31, 2003
(Unaudited)
Three months July 31 Nine months July 31
2003 2002 2003 2002
$ $ $ $
---------------------------------------------------------------------
REVENUE 2,515,706 220,764 6,382,625 706,405
Cost of sales 2,147,268 - 5,186,384 -
---------------------------------------------------------------------
Gross margin 368,438 220,764 1,196,241 706,405
EXPENSES
Research and
development 175,011 565,454 1,144,546 1,974,087
Sales and marketing 400,358 377,096 1,181,342 1,285,107
General and
administrative 771,163 692,236 2,610,283 2,484,392
Depreciation and
amortization 106,803 202,530 609,641 470,004
---------------------------------------------------------------------
1,453,335 1,837,316 5,545,812 6,213,590
---------------------------------------------------------------------
Loss before the
following (1,084,897) (1,616,552) (4,349,571) (5,507,185)
Interest expense
(income) (19,455) (41,207) (86,572) (143,558)
---------------------------------------------------------------------
---------------------------------------------------------------------
Loss for the
period (1,065,442) (1,575,345) (4,262,999) (5,363,627)
---------------------------------------------------------------------
---------------------------------------------------------------------
Loss per share (0.18) (0.49) (1.04) (1.86)
---------------------------------------------------------------------
---------------------------------------------------------------------
Weighted average
common shares
outstanding 5,784,984 3,218,839 4,085,920 2,887,270
---------------------------------------------------------------------
---------------------------------------------------------------------
Deficit, beginning
of period (57,632,863) (51,826,646) (54,435,306) (48,038,364)
Loss for the
period (1,065,442) (1,575,345) (4,262,999) (5,363,627)
---------------------------------------------------------------------
Deficit, end of
period (58,698,305) (53,401,991) (58,698,305) (53,401,991)
---------------------------------------------------------------------
---------------------------------------------------------------------
DIVERSINET CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in Canadian dollars)
Three and nine months ended July 31, 2003
(Unaudited)
Three months July 31 Nine months July 31
2003 2002 2003 2002
$ $ $ $
--------------------------------------------------------------------
OPERATING ACTIVITIES
Loss for the period (1,065,442) (1,575,345) (4,262,999) (5,363,627)
Add (deduct) items
not requiring an
outlay of cash:
Depreciation and
amortization 106,803 202,530 609,641 470,004
Gain on disposal of
capital assets (6,274) - (6,274) -
Changes in non-cash
working capital
items related to
operations:
Accounts receivable
and other
receivables (200,451) (49,140) 2,248,734 47,921
Prepaid expenses 125,352 80,542 (94,992) 358,255
Accounts payable and
accrued liabilities (7,380) (288,212) (400,028) (1,723,697)
Deferred revenue 30,498 (12,765) 41,824 (8,912)
--------------------------------------------------------------------
Cash used in
operating activities (1,016,894) (1,642,390) (1,864,094) (6,220,056)
--------------------------------------------------------------------
--------------------------------------------------------------------
FINANCING ACTIVITIES
Issue of common
shares, common
purchase options,
warrants for cash
and share
consolidation costs 4,140,955 191,344 4,132,954 4,964,970
Notes payable (4,445) - (1,363,750) -
Promissory notes
payable (24,000) - (106,140) -
Bank indebtedness - - (380,000) -
Deferred financing
costs - - (27,401) -
--------------------------------------------------------------------
Cash provided by
financing activities 4,112,510 191,344 2,255,663 4,964,970
--------------------------------------------------------------------
--------------------------------------------------------------------
INVESTING ACTIVITIES
Short-term
investments (3,482,618) - (595,266) 3,087,680
Proceeds from
disposal of capital
assets 100,000 - 100,000 -
Acquisition, net of
cash received (29,022) - (380,174) -
Additions to capital
assets (5,847) - 51,500 (11,392)
--------------------------------------------------------------------
Cash provided by
(used in) investing
activities (3,417,487) - (823,940) 3,076,288
--------------------------------------------------------------------
--------------------------------------------------------------------
Net increase
(decrease) in cash
and cash
equivalents during
the period (321,871) (1,451,046) (432,371) 1,821,202
Cash and cash
equivalents,
beginning of the
period 842,772 6,334,092 953,272 3,061,844
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash and cash
equivalents,
end of the period 520,901 4,883,046 520,901 4,883,046
--------------------------------------------------------------------
--------------------------------------------------------------------
# of shares issued and outstanding 11,042,944
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion