Visit The CounterPath Store
CounterPath Store

Buy - CounterPath Bria

for Windows, Mac and iOS/Android Devices

Interested in buying Bria for your Macintosh?

Interested in buying Bria for Windows?

Buy Bria for your Android device

Buy Bria for your iPad/iPhone

Buy Now Buy Now Buy Now Buy Now

collapse

CounterPath Reports Third Quarter Fiscal 2018 Financial Results

Company Records 21% Year-Over-Year Revenue Growth

Vancouver, BC, Canada — 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

Management Commentary

“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

Financial Overview

(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 same quarter last fiscal year.

Foreign exchange loss for the quarter ended January 31, 2018 was $0.3 million compared to 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 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.

Forward-Looking Statements

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, the 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 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.

About CounterPath

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.

Contacts

David Karp
Chief Financial Officer, CounterPath
dkarp@counterpath.com
(604) 628-9364


CounterPath Corporation
Condensed Consolidated Statements of Operations
(Stated in U.S. Dollars)
(Unaudited)
  Jan 31, 2018 Apr 30, 2017
Assets    
Current assets:    
Cash and cash equivalents 3,048,418 2,071,019
Accounts receivable (net of allowance for doubtful accounts of $249,995 and $80,232, respectively) 3,932,957 2,133,469
Prepaid expenses and deposits 236,987 170,853
Assets 7,218,362 4,375,341
     
Deposits 102,417 91,400
Equipment 125,094 125,813
Goodwill 7,144,260 6,440,955
Other assets 210,865 199,637
Total assets 14,800,998 11,233,146

Liabilities and Stockholders’ Equity    
Current liabilities:    
Accounts payable and accrued liabilities 2,080,402 1,825,528
Accrued warranty 60,330 54,365
Customer deposits 2,794 6,211
Unearned revenue 2,421,672 2,134,948
Total current liabilities 4,570,198 4,021,052
     
Deferred lease inducements 17,611 23,022
Unrecognized tax liability 9,763 9,763
Total liabilities 4,597,572 4,053,837
     
Stockholders’ equity:    
Preferred stock, $0.001 par value    
Authorized: 100,000,000    
Issued and outstanding: January 31, 2018 — nil; April 30, 2017 — nil
Common stock, $0.001 par value    
Authorized: 10,000,000    
Issued and outstanding:    
January 31, 2018 — 5,935,206; April 30, 2017 — 5,005,245 5,935 5,005
Treasury stock - (60)
Additional paid-in capital 75,071,382 71,680,575
Accumulated deficit (62,253,057) (60,481,015)
Accumulated other comprehensive loss — currency translation adjustment (2,620,834) (4,025,196)
Total stockholders’ equity 10,203,426 7,179,309
Liabilities and Stockholders’ Equity 14,800,998 11,233,146


CounterPath Corporation
Condensed Consolidated Statements of Operations
(Stated in U.S. Dollars)
(Unaudited)
  Three Months Ended
  January 31,
  2018 2017
Revenue:    
Software 1,719,165 1,324,203
Subscription, support and maintenance 1,120,690 1,031,162
Professional services and other 172,048 199,994
Total revenue 3,083,903 2,555,359
Operating expenses:    
Cost of sales (includes depreciation of $4,753 (2017 – $4,975)) 362,057 360,772
Sales and marketing 996,470 819,958
Research and development 1,361,219 1,215,783
General and administrative 800,049 678,243
Total operating expenses 3,519,795 3,074,706
Loss from operations (435,892) (519,347)
Interest and other income (expense), net:    
Interest and other income 36
Interest expense (123)
Foreign exchange gain/(loss) (342,328) (162,829)
Net income (loss) for the period (778,343) (682,140)


Net income (loss) per share:    
Basic and Diluted (0.14) (0.14)
     
Weighted average common shares outstanding:    
Basic and Diluted 5,539,352 4,789,675


CounterPath Corporation
Condensed Consolidated Statements of Operations
(Stated in U.S. Dollars)
(Unaudited)
  Nine Months Ended
  January 31,
  2018 2017
Revenue:    
Software 5,306,925 4,223,066
Subscription, support and maintenance 3,069,371 2,944,349
Professional services and other 1,230,978 1,165,051
Total revenue 9,607,274 8,332,466
Operating expenses:    
Cost of sales (includes depreciation of $4,753 (2017 – $4,975)) 1,131,122 1,334,385
Sales and marketing 3,031,981 2,770,367
Research and development 4,052,129 3,524,959
General and administrative 2,407,234 2,531,322
Total operating expenses 10,622,466 10,161,033
Loss from operations (1,015,192) (1,828,567)
Interest and other income (expense), net:    
Interest and other income 222
Interest expense (338)
Foreign exchange gain/(loss) (756,512) 218,274
Net income (loss) for the period (1,772,042) (1,610,071)


Net income (loss) per share:    
Basic and Diluted (0.33) (0.35)
     
Weighted average common shares outstanding:    
Basic and Diluted 5,354,690 4,631,472


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
(Unaudited)

  Three Months Ended
  January 31,
  2018 2017
Non-GAAP income (loss) from operations:    
     
GAAP income (loss) from operations (435,892) (519,347)
Plus:    
Stock-based compensation 87,924 150,325
Non-GAAP income (loss) from operations (347,968) (369,022)
     
     
Non-GAAP net income (loss):    
     
GAAP net income (loss) (778,343) (682,140)
Plus:    
Stock-based compensation 87,924 150,325
Foreign exchange gain (loss) 342,328 162,829
Non-GAAP net income (loss) (348,091) (368,986)
     
GAAP net income (loss) per share:    
Basic and diluted (0.14) (0.14)
     
Non-GAAP net income (loss) per share:    
Basic and diluted (0.06) (0.08)


  Nine Months Ended
  January 31,
  2018 2017
Non-GAAP income (loss) from operations:    
     
GAAP income (loss) from operations (1,015,192) (1,828,567)
Plus:    
Stock-based compensation 494,883 701,515
Non-GAAP income (loss) from operations (540,309) (1,127,052)
     
     
Non-GAAP net income (loss):    
     
GAAP net income (loss) (1,772,042) (1,610,071)
Plus:    
Stock-based compensation 494,883 701,515
Foreign exchange gain (loss) 756,512 (218,274)
Non-GAAP net income (loss) (520,647) (1,126,830)
     
GAAP net income (loss) per share:    
Basic and diluted (0.33) (0.35)
     
Non-GAAP net income (loss) per share:    
Basic and diluted (0.10) (0.24)