Diversinet Corp. Announces First Quarter Fiscal 2003 Results.Business Editors TORONTO--(BUSINESS WIRE)--March 14, 2003 Diversinet Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DVNTC), a leading provider of secured mobile solutions, today announced its first quarter fiscal 2003 results. Revenues for the first quarter of fiscal 2003 were $1,218,000, up from $174,000 in the first quarter of fiscal 2002. The higher revenue was largely due to the inclusion of the results for 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. 2, 2003, and therefore includes one month of DSS' operations in the combined first quarter activity. The net loss for the three months ended January 31, 2003, was $1,114,000, or $(0.35) per share, compared to a net loss for the same quarter in fiscal 2002 of $1,725,000, or $(0.65) per share. On January 28, 2003, the Company implemented a 1 for 10 reverse stock split that was approved by its shareholders at the Company's Annual and Special Meeting of Shareholders on January 22, 2003. During the quarter, Diversinet acquired U.S. based DSS Software Technologies to enhance its ongoing strategy to provide greater depth and breadth in its product/service offering and to establish a significant US presence. Combined, DSS and Diversinet's technical and industry expertise offers integrated solutions and full services offering. In January, Diversinet's DSS division entered into product and project development agreements with Engage, a provider of advertising, marketing and promotion software solutions; HRD HRD Human Resource Development HRD Human Resources Department HRD Hurricane Research Division HRD Hoge Raad Voor Diamant (Diamond High Council, Belgium) HRD hypothetical reference decoder (digital TV) Press, a publishing company specializing in the area of human resource development; QuickLogic, a developer of Embedded Inserted into. See embedded system. Standard Products; and SSG SSG abbr. staff sergeant , a provider of just-in-time just-in-time - dynamic translation information applications for the manufacturing market. Activities in the Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). market are continuing to progress with the signing of new agreements during the quarter. In December December: see month. 2002, MobileTech licensed Diversinet's 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. ONE(TM) wireless security software to secure its mSuite mobile productivity product line. MobileTech is leveraging its strength in the China market and targeting the government, transportation and enterprise industries. In January 2003, eGeneral licensed Diversinet's Passport wireless security software to enable Hongkong Post
During the quarter, the Company made a strategic entry into the 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. market. In January 2003, the Company signed a license agreement with Effective Solution Ltd., a developer of lottery lottery, scheme for distributing prizes by lot or other method of chance selection to persons who have paid for the opportunity to win. The term is not applicable when lots are drawn without payment by the interested parties to determine some matter, e.g. and pari-mutuel pari-mutuel Betting pool in which those who bet on competitors finishing in the first three places share the total amount bet minus a percentage for the management. First introduced in France c. software systems, to jointly implement Diversinet's leading wireless security in Effective Solution's new iLottery System. The distribution agreement with Effective Solution represents the entry point for Diversinet's wireless security products into the Asia-Pacific gaming and wagering market. In the first quarter of 2003, the Company also made progress in maintaining its technological lead with the granting of a patent, "System and Method for Reliable Key Transfer," a business continuity tool for trust systems. The Company also added new products to support Microsoft's Windows Powered mobile devices, including its new Smartphone A cellular telephone with information access. It provides digital voice service as well as any combination of e-mail, text messaging, pager, Web access, voice recognition, still and/or video camera, MP3, TV or video player and organizer (see PDA). , Pocket PC and Pocket PC Phone Edition A Pocket PC with telephone capability. It is the combination of Microsoft's Pocket PC and Smartphone platforms. See Pocket PC and Windows Mobile. . "We are particularly pleased with the execution of our growth strategy," said Nagy Nagy is the most popular Hungarian surname, pronounced /nɒɟ/ or roughly like 'nawdge'. It may refer, among others, to the following people:
Diversinet Corp.
CONSOLIDATED BALANCE SHEETS
(in Canadian dollars)
(Unaudited)
January 31 October 31
2003 2002
$ $
--------------------------------------------------------------------
--------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents 2,150,482 953,272
Short-term investments - 2,887,352
Accounts receivable 1,844,171 416,070
Other receivables 227,248 24,952
Prepaid expenses 546,073 120,608
--------------------------------------------------------------------
Total current assets 4,767,974 4,402,254
--------------------------------------------------------------------
Capital assets, net 1,887,737 1,877,012
--------------------------------------------------------------------
Goodwill 1,403,823 -
--------------------------------------------------------------------
Total assets 8,059,534 6,279,266
--------------------------------------------------------------------
--------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness 380,000 -
Accounts payable 1,071,280 551,306
Accrued liabilities 1,421,380 1,093,352
Current portion of promissory note 473,070 -
Current portion of notes payable 50,134 -
Deferred revenue 38,740 14,452
--------------------------------------------------------------------
Total current liabilities 3,434,604 1,659,110
--------------------------------------------------------------------
Promissory note 473,070 -
Notes payable 55,896 -
--------------------------------------------------------------------
Total liabilities 3,963,570 1,659,110
--------------------------------------------------------------------
--------------------------------------------------------------------
Shareholders' equity
Share capital 58,957,962 58,957,962
Share purchase warrants 589,824 -
Contributed surplus 97,500 97,500
Deficit (55,549,322) (54,435,306)
--------------------------------------------------------------------
Total shareholders' equity 4,095,964 4,620,156
--------------------------------------------------------------------
--------------------------------------------------------------------
Total liabilities and shareholders' equity 8,059,534 6,279,266
--------------------------------------------------------------------
--------------------------------------------------------------------
Diversinet Corp.
CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
(in Canadian dollars)
Three months ended January 31, 2003
(Unaudited)
Three months January 31
2003 2002
$ $
--------------------------------------------------------------------
REVENUE
Software products 283,952 174,452
Consulting services 933,813 -
--------------------------------------------------------------------
1,217,765 174,452
--------------------------------------------------------------------
Cost of sales 786,565 -
--------------------------------------------------------------------
Gross margin 431,200 174,452
EXPENSES
Research and development 437,557 647,618
Sales and marketing 399,423 431,591
General and administrative 612,066 736,452
Depreciation and amortization 137,380 121,876
--------------------------------------------------------------------
1,586,426 1,937,537
--------------------------------------------------------------------
Loss before the following (1,155,226) (1,763,085)
Interest income (41,210) (38,127)
--------------------------------------------------------------------
--------------------------------------------------------------------
Loss for the period (1,114,016) (1,724,958)
--------------------------------------------------------------------
--------------------------------------------------------------------
Loss per share (0.35) (0.65)
--------------------------------------------------------------------
--------------------------------------------------------------------
Weighted average
common shares outstanding 3,222,210 2,641,388
--------------------------------------------------------------------
--------------------------------------------------------------------
Deficit, beginning of period (54,435,306) (48,038,364)
Loss for the period (1,114,016) (1,724,958)
--------------------------------------------------------------------
Deficit, end of period (55,549,322) (49,763,322)
--------------------------------------------------------------------
--------------------------------------------------------------------
Diversinet Corp.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in Canadian dollars)
Three months ended January 31, 2003
(Unaudited)
Three months January 31
2003 2003
$ $
--------------------------------------------------------------------
OPERATING ACTIVITIES
Loss for the period (1,114,016) (1,724,958)
Add (deduct) items not requiring an
outlay of cash:
Depreciation and amortization 137,380 121,876
Changes in non-cash working capital
items related to operations:
Accounts receivable and other
receivables 1,955,636 212,832
Prepaid expenses (367,248) 176,814
Accounts payable and accrued
liabilities (1,634,080) (1,150,573)
Deferred revenue 24,288 6,705
--------------------------------------------------------------------
Cash used in operating activities (998,040) (2,357,304)
--------------------------------------------------------------------
--------------------------------------------------------------------
FINANCING ACTIVITIES
Notes payable (326,034) -
Deferred financing costs (27,601) -
--------------------------------------------------------------------
Cash provided by financing activities (353,635) -
--------------------------------------------------------------------
--------------------------------------------------------------------
INVESTING ACTIVITIES
Short-term investments 2,887,352 3,087,680
Acquisition, net of cash received (337,603) -
Additions to capital assets (864) (9,202)
--------------------------------------------------------------------
Cash provided by investing activities 2,548,885 3,078,478
--------------------------------------------------------------------
--------------------------------------------------------------------
Net increase in cash and cash
equivalents during the period 1,197,210 721,174
Cash and cash equivalents,
beginning of the period 953,272 3,061,844
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash and cash equivalents,
end of the period 2,150,482 3,783,018
--------------------------------------------------------------------
--------------------------------------------------------------------
INVESTOR TELECONFERENCE CALL Diversinet's executive team will hold a teleconference call Monday Monday: see week. , March 17, 2003 at 8:30a.m. ET to discuss first quarter results. Institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. should contact Sandra sandra (sänˑ·dr  ),adj Lemaitre, Diversinet Corp., at 416-756-2324, ext.324 for the dial-in-number. Investors are encouraged to listen to the live call from the home page and investor relation's portion of the Company's Web site: http://www.diversinet.com. The webcast will be available for 90 days. About Diversinet Corp. Diversinet is a leading provider of secured mobile solutions to the enterprise, 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 gaming and wagering marketplaces. With demonstrated expertise in wireless and security, Diversinet delivers secure, reliable and scalable mobile solutions through security products and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. 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 Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , 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: ; 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. , SAR (Segmentation And Reassembly) The protocol that converts data to cells for transmission over an ATM network. It is the lower part of the ATM Adaption Layer (AAL), which is responsible for the entire operation. See AAL. SAR - segmentation and reassembly ; 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion