Diversinet Posts 2Q 2009 Financial Results

Wireless News
08-02-2009
Diversinet Posts 2Q 2009 Financial Results
Type: News

Diversinet Corp., a provider of secure application platforms for the mobile world, announced financial results for the second quarter of 2009. All dollar amounts are in U.S. dollars.

In a release on July 31, the Company noted that revenues for the second quarter were $1,945,000, up 244 percent percent compared to $565,000 in the second quarter of 2008. Revenues for the six months ended June 30, were $3,955,000, up 336 percent from $906,000 in the same period in 2008. The Q2 2009 revenues include $1,625,000 from the $40 million five-year worldwide license and revenue share agreement with AllOne Mobile Corp. (AllOne) signed in Q3 2008.
The net income for the second quarter of 2009 was $1,056,000 or $0.02 per share, compared to a net loss of $1,205,000, or $0.03 per share in the second quarter of 2008. The net income for the six months ended June 30, was $1,238,000, or $0.03 per share, compared to a net loss of $2,363,000 or $0.05 per share in the similar six months of 2008. Included in the second quarter net income are non- cash stock-based compensation, depreciation and amortization of $259,000 ($304,000 in Q2 2008). Also included in the second quarter net income is a foreign exchange gain of $707,000 ($15,000 gain in Q2 2008). Cash and cash equivalents at June 30, were $10,671,000 and $10,719,000 at March 31.

Albert Wahbe, CEO and Chairman stated "First and foremost is the continued strength of our balance sheet and the achievement of our fourth consecutive profitable quarter - both represent significant achievements for Diversinet. We believe that 2009 will be our first profitable year since our founding twelve years ago. From a business perspective, will continue to be measured by our and AllOne's ability to negotiate pilots and strategic partnerships as we wait for the wireless health care market to emerge. While we would like to see the market evolve faster, we have noticed an increase in telehealth activity over the last three months. From a competitive standpoint, we believe Diversinet is a leading secure application platform for the mobile world. Through our partnership with AllOne Mobile we have established exciting new relationships with Microsoft HealthVault and the U.S. Army, establishing a credible footprint. Additionally, we have several U.S. and international activities that I am confident will emerge during the second half of 2009. Please note that Diversinet is providing technology leadership in the telehealth segment that is still in its infancy and evolving rapidly. While our technology is available for deployment, our growth is ultimately reliant upon market adoption. We continue to believe that we can make additional progress in the health care industry even in these challenging economic times and believe the U.S. commitment to spend up to $31 billion dollars on U.S. health care information technology over the next 10 years will be a positive catalyst for AllOne and Diversinet. With this momentum, we expect to launch an investor relations program later this year."

Company, customer and product solution highlights include:

- During May 2009, the AllOne Mobile secured by Diversinet and MyHealth

Mobile application (for BlueCross of Northeast Pennsylvania members)

was approved and is now available on the Verizon BREW application

deck for download.

- During May 2009, the AllOne Mobile secured by Diversinet product went

live with a secure mobile consumer direct PHR (personal health

record) solution that is offered by Microsoft's HealthVault. The

product is now available for purchase for $25 per year. Visit

HealthVault's website to purchase our innovative solution today at http://healthvault.com/websites/AllOneHealth- AllOneMobile.html?type= application.

- During June 2009, the AllOne Mobile secured by Diversinet product

went live on the iTunes App Store offering three iPhone apps

available for download. The applications are for AllOne Mobile,

MyHealth Mobile and mCare. The mCare application is for use in a U.S.

Army pilot that creates a challenge response secure session with the

wounded warrior for interactive feedback. The AllOne Mobile direct to

consumer application for Microsoft's HealthVault is anticipated to be

available in August.

- During June 2009, after successful implementation of our U.S. Army

pilot our combined solution was moved behind the Army's firewall and

the pilot metrics expanded. An early positive sign. AllOne Mobile's

platform is anticipated to support the rehabilitation needs of up to

10,000 returning soldiers in a phased implementation over the next

year.

- Diversinet was awarded an additional U.S. Patent # 7,555,460

entitled "Payment system and method using tokens" on June 30.

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 now includes 12 patents and 24 patents

pending.

- During April 2009, the AllOne Mobile Secured by Diversinet product

(that utilizes MobiSecure Wallet and Vault) won the Info Security

Products Guide 2009 Global Product Excellence Award for Security

solution for health.

Diversinet Corp. is a 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.

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