healthcare & financial

Leading provider of wireless authentication and access solutions.

Message: Diversinet loses $1.94-million (U.S.) in 2008

Diversinet loses $1.94-million (U.S.) in 2008

posted on Mar 05, 2009 07:29AM

Diversinet loses $1.94-million (U.S.) in 2008

2009-02-24 09:05 EST - News Release

Mr. David Hackett reports


Diversinet Corp. today released its fiscal 2008 results. All dollar amounts are in U.S. dollars.

For the year ended Dec. 31, 2008, Diversinet reported revenue of $4,615,000 compared with revenue of $4,537,000, for the year ended Dec. 31, 2007.

The company reported a net loss of $1,949,000 or four cents per share for the year ended Dec. 31, 2008, compared with a net loss of $3,433,000 or nine cents per share for the year ended Dec. 31, 2007.

Included in the Dec. 31, 2008, net loss are non-cash items of $1,389,000 in stock-based compensation expense, depreciation and amortization of $155,000, totalling $1,544,000 or 79 per cent of the net loss.

The company recorded revenues of $1,924,000 in the three months ended Dec. 31, 2008, compared with $1,352,000, in the same period in the prior year.

Net income for the three months ended Dec. 31, 2008, was $272,000, compared with a net loss for the same quarter in fiscal 2007 of $1,326,000. Included in the three months ended Dec. 31, 2008, net income, are non-cash items of $598,000 in stock-based compensation expense, $76,000 for depreciation and amortization, totalling $674,000.

The company had $12,075,000 in cash and cash equivalents as of Dec. 31, 2008. Cash provided by operations during 2008 amounted to $1,938,000, compared with cash used in operations of $2,201,000 for 2007.

"Two thousand eight marked an important year for Diversinet as we continued to successfully transition from a product development-focused company towards a sales and marketing enterprise. In 2008 we continued to develop customer relationships, notably in the health care sector. This was highlighted by our five-year, $40-million worldwide exclusive licence and revenue share agreement with AllOne Mobile Corp. The second half of 2008 also saw another Diversinet first, profitability in each of the third and fourth quarters," said Albert Wahbe, Diversinet's chief executive officer.

Outlined below are the key milestones the company achieved during 2008:

  • In April, AllOne launched its mobile application that uses the company's secure MobiSecure Wallet and Vault product line to place personal health records (PHR) at consumers' fingertips through their mobile phones. AllOne Mobile accesses an individual's PHR in a secure environment and links to the users' mobile phones, giving them well-organized, easy-to-use, 24/7 mobile access. Users can manage and share their PHRs with physicians, hospitals, clinics and emergency personnel helping to improve medical outcomes. AllOne data are stored behind a password-protected encrypted channel through a partnership with Diversinet. The application is downloaded wirelessly to phones and is automatically updated with the most current security and features available. This level of security and control gives users the confidence and comfort to create, manage and enhance their PHRs using a mobile phone or the Web.
  • In April, Diversinet introduced the MobiSecure USBToken. The MobiSecure USBToken is a one-time password (OTP) authentication technology contained within a durable, portable USB device which is driverless and leaves no residual footprint on the user's computer.
  • In June, Intersections Inc. launched Mobile Lockbox, a major enhancement to the Identity Guard total protection service. MobiSecure Wallet and Vault mobile secure encrypted access solution is at the heart of the offering. MobiSecure Wallet and Vault provides Intersections with a mobile security platform to extend its core Identity Guard offering by creating a host of new services that build closer, more personal and "sticky" relationships with new and existing customers.
  • In June, chief executive officer and chairman Albert Wahbe exercised 2.3 million share purchase warrants at 75 cents per common share for gross proceeds of $1,725,000.
  • In September, Diversinet signed an exclusive worldwide licence and revenue share agreement with AllOne Mobile Corp., a subsidiary of AllOne Health Group Inc., which in turn is a subsidiary of Hospital Service Association of Northeastern Pennsylvania to cross license certain software and to share revenues from the secure mobile access to personal health records and information. During the five-year agreement, Diversinet is to receive a minimum commitment fee of $5.5-million in the first year, $7-million per year in years two and three and $10-million per year in years four and five from AllOne. The agreement may be cancelled after the third year if, through no fault of either party, there are changes in market conditions, law or regulation, or technology obsolescence. In addition, Diversinet also completed a $500,000 statement of work for AllOne, bringing the combined total of the five-year agreement to $40-million. This agreement replaces the agreement with AllOne Health Group signed in August, 2007.
  • During the third quarter of 2008, Diversinet refocused its sales efforts primarily toward mobile personal health records and related secured payments and identity protection.

New Message
Please login to post a reply