Cookie Problem

I have a custom module that write a cookie (using setcookie). It is being written correctly (xxx=1).

I am reading this cookie from a template that has php enabled (see below)

<? if ( !isset($_COOKIE["xxx"]) or $_COOKIE["xxx"] != "1" )  {?>  
do something...
<? } ?>

I tested this code on my staging server and it works fine there but on the live site the condition always returns “true” even if the value of cookie is “1”. Please help.