Diversinet announced its first quarter revenues for 2010 were $576,000, down from $2 million during the same period last year. According to the company, the decrease is largely attributable to AllOne Mobile's failure to pay its quarterly minimum commitment of $1.75 million per the two companies' licensing and revenue share agreement inked in late 2008. The two companies are currently moving toward a settlement that would likely terminate the original agreement and see AllOne Mobile paying at least some of the money it owes Diversinet.
Diversinet's agreement with AllOne Mobile may come to an end as early as next month. Once free from that agreement and with a new product line, Diversinet is poised to capitalize on growing momentum in the mobile health space:
"During the quarter... [Diversinet] introduced a major new release that makes implementing mobile health faster and easier to deploy, along with secure SMS capability that offers broader accessibility," Diversinet Chairman and CEO Albert Wahbe stated in a company release. "With our new emphasis on mobile health, we expect to benefit from the strengthening and widespread market demand for the secure mobilisation of health information, driven by both clear economics for healthcare organizations and new U.S. federal legislation providing healthcare IT funding and incentives."
AllOne Mobile worked with Diversinet on a handful of major mHealth initiatives, including a pilot program with the U.S. Army that provided "wounded warriors" with their health information securely accessible from their mobile phones. The AllOne Mobile app enabled care givers and providers to help the veterans manage their care regimens, especially those for traumatic brain injuries. While two of AllOne Mobile's health apps have disappeared from Apple's AppStore, the mCare app, which is offered to those "wounded warriors" in the pilot is still available through the online store. The other apps, which were created for use by various health insurers customers are no longer live.
For more on Diversinet's first quarter financials, check out the company's press release here.