Company Records 21% Year-Over-Year Revenue Growth
VANCOUVER, BC / ACCESSWIRE / March 13, 2018 / CounterPath Corporation ("CounterPath" or the "Company") (NASDAQ: CPAH) (TSX: PATH), a global provider of award-winning over-the-top (OTT) Unified Communications solutions for enterprises and carriers, today announced the financial and operating results for the third quarter ended January 31, 2018 of fiscal year 2018.
Third Quarter Financial Highlights (unaudited)
"CounterPath grew its subscription, support and maintenance revenue to a record level in the third quarter and I am pleased with the increased customer activity," said Donovan Jones, President, and Chief Executive Officer. "We entered into an agreement with an existing customer worth approximately $2 million over three years, while an international, tier-one service provider for which we completed customization services last quarter, placed their first softphone license order. Our team has also been working towards the recent launch of CounterPath Stretto Collaboration, our new hosted team collaboration service. Stretto Collaboration extends the CounterPath Bria softphone experience by allowing customers to add HD video, voice, messaging, presence, screen sharing and now collaboration to their existing UC deployment without requiring any changes to their current communications environment. CounterPath also strengthened its partnership with Oracle Communications by developing a joint UC cloud solution. The CounterPath and Oracle solution seamlessly interoperates between communications systems, devices and legacy infrastructure to enhance enterprise communication capabilities and fills a key gap in the UC user experience by providing businesses and service providers with an "Always Connected" state regardless of location, device or network. CounterPath and Oracle are showcasing the joint solution in the Oracle booth this week at Enterprise Connect, targeting mid to large enterprise," continued Jones.
Recent Business Highlights
(All amounts are in U.S. dollars and in accordance with accounting principles generally accepted in the United States ("GAAP") unless otherwise specified - unaudited.)
Revenue was $3.1 million for the quarter ended January 31, 2018, compared to $2.6 million for the same quarter last fiscal year. Software revenue was $1.8 million compared to $1.3 million for the same quarter last fiscal year. Subscription, support and maintenance revenue was $1.1 million compared to $1.0 million for the same quarter last fiscal year. Professional services and other revenue was $0.2 million compared to $0.2 million for the same quarter last fiscal year.
Operating expenses for the quarter ended January 31, 2018, were $3.5 million compared to $3.1 million for the same quarter last fiscal year. Operating expenses for the quarter ended January 31, 2018, included a non-cash stock-based compensation expense of $0.1 million (2017 - $0.2 million). Sales and marketing expenses were $1.0 million for the quarter ended January 31, 2018, compared to $0.8 million for the same quarter last fiscal year. For the quarter ended January 31, 2018, research and development expenses were $1.4 million and general and administrative expenses were $0.8 million compared to $1.2 million and $0.7 million, respectively, for the same quarter last fiscal year.
Foreign exchange loss for the quarter ended January 31, 2018, was $0.3 million compared to the foreign exchange loss of $0.2 million for the same quarter last fiscal year. The foreign exchange gain (loss) represents the gain (loss) on account of the translation of the intercompany accounts of CounterPath's subsidiary which are maintained in Canadian dollars and transactional gains and losses resulting from transactions denominated in currencies other than U.S. dollars.
The net loss for the quarter ended January 31, 2018, was $0.8 million, or $0.14 per share, compared to a net loss of $0.7 million, or $0.14 per share, for the same quarter last fiscal year. As of January 31, 2018, the Company had $3.0 million in cash, compared to $2.1 million at April 30, 2017.
This news release contains "forward-looking statements". Statements in this news release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including the Company's plan to showcase its joint solution with Oracle this week at Enterprise Connect, targeting mid to large enterprise. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (1) the variability in CounterPath's sales from reporting period to reporting period due to extended sales cycles as a result of selling CounterPath's products through channel partners or the length of time of deployment of CounterPath's products by its customers; (2) the Company's ability to manage its operating expenses, which may adversely affect its financial condition; (3) the Company's ability to remain competitive as other better financed competitors develop and release competitive products (4) a decline in the Company's stock price or insufficient investor interest in the Company's securities which may impact the Company's ability to raise additional financing as required or may cause the Company to be delisted from a stock exchange on which its common stock trades (5) the impact of intellectual property litigation that could materially and adversely affect the Company's business (6) the success by the Company of the sales of its current and new products (7) the impact of technology changes on the Company's products and industry (8) the failure to develop new and innovative products using the Company's technologies and (9) the potential dilution to shareholders or overhang on the Company's share price of its outstanding stock options. Readers should also refer to the risk disclosures outlined in the Company's quarterly reports on Form 10-Q, Company's annual reports on Form 10-K, and the Company's other disclosure documents filed from time to time with the Securities and Exchange Commission at http://www.sec.gov and the Company's interim and annual filings and other disclosure documents filed from time to time on SEDAR at www.sedar.com.
CounterPath Unified Communications solutions are changing the face of telecommunications. An industry and user favorite, Bria softphones for desktop, tablet and mobile devices, together with Stretto Platform™ server solutions, enable operators, OEMs and enterprises large and small around the globe to offer a seamless and unified over-the-top (OTT) communications experience across both fixed and mobile networks. The Bria and Stretto combination enables an improved user experience as an overlay to the most popular UC and IMS telephony and applications servers on the market today. Standards-based, cost-effective and reliable, CounterPath's award-winning solutions power the voice and video calling, messaging, and presence offerings of customers such as AT&T, Avaya, BroadSoft, BT, Cisco Systems, Metaswitch Networks, Mitel, NEC, Network Norway, Nokia, Ribbon Communications, Rogers, and Verizon. Visit CounterPath, www.counterpath.com.
Chief Financial Officer, CounterPath
CONDENSED CONSOLIDATED BALANCE SHEETS
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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Three Months Ended
Nine Months Ended
Subscription, support and maintenance
Professional services and other
Cost of sales (includes depreciation of $4,753 (2017 – $4,975))
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Total operating expenses
Loss from operations
Interest and other income (expense), net:
Interest and other income
Foreign exchange gain/(loss)
Net loss for the period
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Non-GAAP Financial Measures
This news release contains "non-GAAP financial measures". The non-GAAP financial measures in this news release consist of non-GAAP income (loss) from operations which excludes non-cash stock-based compensation relative to income (loss) from operations calculated in accordance with GAAP. The non-GAAP financial measures also include non-GAAP net income (loss) which excludes non-cash stock-based compensation and foreign exchange gain (loss) relative to income (loss) calculated in accordance with GAAP. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. CounterPath utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. CounterPath believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors' understanding of CounterPath's core operating results and trends.
Reconciliation to GAAP
SOURCE: CounterPath Corporation