June 1, 1999
Diversinet Corp. Announces Second Quarter Results
TORONTO, ONTARIO--Diversinet Corp. (NASDAQ Small Cap: DVNT; CDN: DVNT) today announced its financial results for the three months and six months ended April 30, 1999.
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In Canadian dollars
Three months Six months
ended April 30 ended April 30
1999 1998 1999 1998
Interest income $35,319 $38,963 $76,900 $137,329
Net loss from
continuing
operations $(1,500,811)$(762,911) $(2,336,676) $(818,002)
Net loss from
discontinued
operations $(285,000)$(200,089) $(285,000) $(254,175)
Net loss $(1,785,811)$(963,000) $(2,621,676)$(1,072,177)
Net loss per
share from
continuing
operations $(0.10) $(0.06) $(0.15) $(0.06)
Net loss per
share $(0.12) $(0.06) $(0.17) $(0.07)
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The Company reported a net loss from continuing operations of $(1,500,811), or $(0.10) per share, for the three months ended April 30, 1999 compared to $(762,911), or $(0.06) per share for the comparable quarter in fiscal 1998. The net loss for the second quarter of fiscal 1999 of $(1,785,811), or $(0.12) per share compares to $(963,000), or $(0.06) per share for the comparable quarter in 1998.
For the six months ended April 30, 1999, the net loss from continuing operations of $(2,336,676), or $(0.15) per share compares to $(818,002), or $(0.06) per share, for the six months ended April 30, 1998. The net loss for the first half of fiscal 1999 of $(2,621,676), or $(0.17) per share, compares to $(1,072,177), or $(0.07) per share, for the same period in fiscal 1998.
The increase in the net loss from continuing operations for the quarter and six months ended April 30, 1999 compared to the same periods in fiscal 1998 reflects the growth stage of the Company represented by its focus on product development and sales, marketing and business development.
During the second quarter of fiscal 1999, the Company closed a $7.4 million equity financing. The Company's net working capital position as of April 30, 1999 was approximately $6,592,000.
"We are pleased to have closed our equity financing in late April. The proceeds from the financing will allow us to continue to execute our growth plan," said Ralph Philipps, Vice President and Chief Financial Officer.
"We are pleased to have added Michael Crosno, Executive Vice President of Gemplus North America to our Board of Directors in April. Mr. Crosno brings valuable sales and marketing experience in the high tech industry to Diversinet. We are also encouraged by our recently announced partnership with Equifax Secure Inc. and the licensing of our technology by Ubiq Communications Inc. These developments, along with our continued focus on product development, sales, marketing and business development, well position the Company for success in its' chosen markets of e-commerce over wireless and cable networks and other enterprise e-commerce applications," said Nagy Moustafa, President and CEO. |
