TORONTO, July 31 - Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF), a leading provider of secure application platforms for the mobile world, today announced financial results for the second quarter of 2009. All dollar amounts are in U.S. dollars.
Revenues for the second quarter were $1,945,000, up 244% percent compared to $565,000 in the second quarter of 2008. Revenues for the six months ended June 30, 2009 were $3,955,000, up 336% 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 Corporation ("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, 2009 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, 2009 were $10,671,000 and $10,719,000 at March 31, 2009.
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, 2009 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, 2009.
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.
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.
