Diversinet Corp. Announces Second Quarter Fiscal 2000 Results
TORONTO--(BUSINESS WIRE)--May 30, 2000--Diversinet Corp. (Nasdaq:DVNT)(CDN:DVNT.) today announced its second quarter fiscal 2000 results.
Revenues of $309,945 were recorded in the three months ended April 30, 2000 compared to no revenue reported in the first quarter of fiscal 2000. The net loss for the three months ended April 30, 2000 was $3,759,303, or $(0.16) per share compared to a net loss for the same quarter in fiscal 1999 of $1,785,811, or $(0.12) per share. The increased net loss in fiscal 2000 is primarily attributed to additional resources added throughout fiscal 1999 and continuing in fiscal 2000 directed towards product development and sales and marketing activities.
"Diversinet continued its progress in developing its business model implementation during the second quarter. We extended the number of available client platforms to include the Palm operating system and WinCE platform, and we added to our list of strategic partners and customers," said Nagy Moustafa, President and CEO of Diversinet. "We also completed staffing of our North American sales and marketing organization and began active operations in both the European and Asian markets."
Highlights for Q2 2000
Diversinet continued to move forward aggressively on its business agenda during the quarter ending April 30, 2000. The company finalized its business agreement with Aether Systems and successfully concluded a similar business agreement with a major public safety and healthcare ASP. In addition, the company concluded letters of intent with Datalink.net and AU System of Sweden, additional important providers of wireless services.
At the CTIA show in February, the company demonstrated a secure banking application on the GSM phone, which we believe is the first PKI implementation for that important segment of the global market for secured transactions.
The pilot application project with First Call was successfully concluded and moved into production in late April. As this high value content application is successfully deployed, Diversinet will begin to see a recurring revenue stream from this important new group of users.
The company also successfully ported its client software to both the Palm and WinCE platforms and deployment testing for these important platforms began with a number of partners.
NOTE TELECONFERENCE CALL:
Tuesday May 30th, 5:00 EST Institutional investors should contact The Investor Relations Group Inc. at 212-736-2650 for the dial-in number. Private investors are encouraged to listen to the live call from the investor relation's portion of the Company's Web site: dvnet.com. The webcast will be available for 90 days. Telephonic rebroadcast will be available on Tuesday, May 30, 2000 from 6 p.m. until Wednesday, May 31, 2000, 12:00 a.m. EST (six hours) by utilizing the following numbers and access code #: 800-475-6701. International: 320-365-3844 access code # 519131.
Diversinet Corp.
CONSOLIDATED BALANCE SHEETS
[In Canadian Dollars]
As at April 30
(unaudited)
2000 1999
$ $
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ASSETS
Current
Cash and cash equivalents 7,160,819 8,543,057
Accounts receivable 676,336 38,684
Prepaid expenses 409,219 102,355
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Total current assets 8,246,374 8,684,096
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Capital assets, net 677,840 344,821
Purchased technology, net 1,085,963 -
Deferred development costs, net 1,237,450 2,775,000
Deferred financing costs, net - 323,940
Net assets of discontinued operations 250,000 250,000
Long-term investment - 1
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11,497,627 12,377,858
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable 757,350 221,132
Accrued liabilities 2,385,323 1,985,789
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Total current liabilities 3,142,673 2,206,921
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Deferred revenue 65,626 -
Convertible debenture - 2,060,000
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Total liabilities 3,208,299 4,266,921
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Shareholders' equity
Share capital 28,622,317 2,956,967
Warrants 468,000 7,077,146
Debenture conversion privilege - 601,000
Contributed surplus 97,500 97,500
Deficit (20,898,489) (2,621,676)
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Total shareholders' equity 8,289,328 8,110,937
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11,497,627 12,377,858
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Diversinet Corp.
CONSOLDIATED STATEMENTS OF LOSS
[In Canadian dollars]
For the three and six
months ended April 30
(unaudited) Three months April 30 Six months April 30
2000 1999 2000 1999
$ $ $ $
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REVENUE
License 309,945 - 628,782 -
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EXPENSES
Research and development 1,232,134 28,262 1,999,326 87,434
Sales and marketing 1,372,739 448,603 2,087,197 782,369
General and
administrative 1,019,543 791,323 2,110,210 1,133,756
Depreciation and
amortization 541,864 43,666 1,407,817 165,017
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4,166,280 1,311,854 7,604,550 2,168,576
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Loss before the
following (3,856,335)(1,311,854)(6,975,768)(2,168,576)
Write down of investment - 99,999 - 99,999
Interest income (97,032) (35,319) (193,579) (76,900)
Interest expense - 124,277 5,003 145,001
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Loss from continued
operations (3,759,303)(1,500,811)(6,787,192)(2,336,676)
Net loss from discontinued
operations - 285,000 - 285,000
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Net loss for the period (3,759,303)(1,785,811)(6,787,192)(2,621,676)
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Loss per share - continuing
operations (0.16) (0.10) (0.30) (0.15)
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Net loss per share (0.16) (0.12) (0.30) (0.17)
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Shares used in per share
computation 22,766,708 15,752,568 22,324,840 15,685,828
Deficit, beginning of
period (17,139,186)(42,084,858)(14,111,297)(41,248,993)
Net loss for the
period (3,759,303) (1,785,811) (6,787,192) (2,621,676)
Reduction to share capital - 41,248,993 - 41,248,993
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Deficit, end of
period (20,898,489) (2,621,676)(20,898,489) (2,621,676)
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About Diversinet Corp.
Diversinet is enabling mobile e-commerce services with its wireless security infrastructure solutions. The company is a leader in delivering end-to-end wireless security infrastructure solutions to wireless device makers, ASP's and operators, application software developers and network infrastructure providers. For more information on Diversinet, visit the company's web site at www.dvnet.com.
Diversinet, Digital Permits and Passport Certificate Server are trademarks of Diversinet Corp. All other companies and products listed herein may be trademarks or registered trademarks of their respective holders.
Except for historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, those relating to the acceptance of mobile and wireless devices and the continued growth of e-commerce and m-commerce (mobile e-commerce), the increase of the demand for mutual authentication in m-commerce transactions, cryptography technology as an industry standard, the market acceptance of our principal products and sales of our customer's products, the impact of competitive products and technologies, the possibility of our products infringing patents and other intellectual property of third parties, and costs of product development. Diversinet will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about the Company and factors that may affect its operations can be obtained from Diversinet's filings with SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission.
CONTACT:
For Media Inquiries:
Edelman PR Worldwide
Brendan Lewis or David Hochman
Tel: 212/704-8176 or 212/704-8257
brendan-lewis@edelman.com
david-hochman@edelman.com
or
For Investor Inquiries:
The Investor Relations Group
Juan Dominguez
Tel: 212/736-2650
TheProTeam@aol.com
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