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CounterPath Reports Fiscal 2009 Second Quarter Financial Results

Vancouver, BC, Canada — December 15, 2008 — CounterPath Corporation (OTCBB: CPAH; TSX-V: CCV), a leading provider of desktop and mobile VoIP software products and solutions, today announced financial and operating results for the second quarter ended October 31, 2008.

Financial and operating highlights for the quarter include: “Despite a difficult and uncertain economic environment, we have significantly reduced our operating costs while achieving record revenues, bringing the company closer to our objective of profitability,” stated Donovan Jones, President and CEO CounterPath Corporation. “Enterprises are under more pressure than ever to seek solutions which reduce costs while increasing productivity. The products from CounterPath are designed to address these requirements by converging voice, video, messaging and presence on multiple devices, across multiple platforms, over both fixed and mobile networks. Our mobile applications are beginning to be deployed by our customers in increasing quantities as the market for VoIP and mobile applications gains momentum. The company is well positioned to address a wide variety of sophisticated technical requirements and able to generate significant advantages for the system end users. We remain one of the few companies with engineering and product strength across the desktop and mobile communications space,” stated Jones.

Financial Results

(All amounts in U.S. dollars and in accordance with accounting principles generally accepted in the United States (“GAAP”) unless otherwise specified. Consolidated financial results include the financial results of NewHeights Software Corporation (“NewHeights”) from August 2, 2007 and the financial results for FirstHand Technologies Inc. (“FirstHand”) and Bridgeport Networks, Inc. (“BridgePort”), from February 1, 2008)

For the quarter ended October 31, 2008, revenue was $3.0 million compared to $2.4 million for the quarter ended October 31, 2007. Software revenue for the quarter ended October 31, 2008 was $2.1 million compared to $2.0 million for the same quarter in the previous year. Service revenue for the quarter ended October 31, 2008 was $0.9 million compared to $0.4 million for the quarter ended October 31, 2007.

Operating expenses for the quarter ended October 31, 2008 were $6.7 million compared to $5.5 million for the same period in 2007. The increase in operating expenses was primarily due to the addition of cash and non-cash operating expenses related to the acquisition of FirstHand and BridgePort. Operating expenses for the quarter ended October 31, 2008 include a non-cash charge of $0.5 million from amortization of intangible assets acquired from NewHeights, FirstHand and BridgePort and a non-cash $0.3 million stock-based compensation expense. Sales and marketing expenses were $1.2 million for the quarter ended October 31, 2008 compared to $1.1 million for the quarter ended October 31, 2007. For the quarter ended October 31, 2008, research and development expenses were $2.1 million and general and administrative expenses were $1.6 million, compared to $1.6 million and $1.8 million, respectively, for the same quarter last year. During the quarter ended October 31, 2008, the Company downsized its workforce by approximately 39% primarily as a result of the integration of its acquisitions of FirstHand and BridgePort. The related restructuring charge was $0.7 million for the quarter (2007 - $0.2 million).

The net loss for the quarter ended October 31, 2008 was $3.5 million, or a loss of $0.12 per share, compared to a net loss of $3.5 million, or a loss of $0.17 per share, for the quarter ended October 31, 2007.

At October 31, 2008, the Company had $3.2 million in cash, compared to $6.2 million at April 30, 2008. At October 31, 2008, the Company’s working capital was $4.2 million, compared to $7.6 million at April 30, 2008.

On December 15, 2008, the Company granted incentive stock options to the Chief Financial Officer and the Chief Technology Officer and a number of employees of the Company for the purchase of a total of 732,000 common shares of the Company, pursuant to its stock option plan. The options are exercisable on or before December 15, 2013, at a price of $0.44 (CDN$0.55) per common share.

About CounterPath
CounterPath Corporation is a leading provider of innovative desktop and mobile VoIP software products and solutions. The Company's product suite includes SIP-based softphones, server applications and Fixed Mobile Convergence (FMC) solutions that enable service providers, enterprises and Original Equipment Manufacturers (OEM) to cost-effectively integrate voice, video, presence and Instant Messaging (IM) applications into their VoIP offerings and extend functionality across both fixed and mobile networks.

CounterPath's customers include some of the world's largest telecommunications service providers and network equipment providers including AT&T, Verizon, BT (British Telecommunications PLC), Deutsche Telekom, Cisco Systems, Mitel and Nortel.

Visit www.counterpath.com.

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, expectations or intentions regarding the future, such as the following: (1) an anticipated reduction in costs and operating expenses of over $5 million per year.

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 failure to successfully integrate the businesses of CounterPath, FirstHand and BridgePort, (2) the failure to develop new and innovative products using the Company’s and FirstHand's and BridgePort’s technologies, (3) the Company’s ability to remain competitive as other parties develop and release competitive products, (4) the Company’s ability to retain the employees necessary to continue research and development of current and new products, (5) the success by the Company of the sales of its current and new products, (6) the impact of competitive products on the sales of the Company’s products, (7) the impact of technology changes on the Company’s products and on the VoIP industry, (8) the compatibility of the Company’s products with new computer operating systems, (9) the rate of adoption by service providers and the general public of VoIP as a replacement for regular and cellular phone service, (10) general economic conditions as they affect CounterPath and its prospective customers, (11) the ability of the Company to control costs operating, general administrative and other expenses, and (12) insufficient investor interest in the Company’s securities which may impact on the Company’s ability to raise additional financing as required. Readers should also refer to the risk disclosures outlined in the Company’s quarterly reports on Form 10-QSB and Form 10-Q, annual reports on Form 10-KSB and the Company’s other disclosure documents filed from time-to-time with the Securities and Exchange Commission and the Company’s interim and annual filings and other disclosure documents filed from time-to-time on SEDAR.

Disclaimer: The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact:

David Karp Chief Financial Officer CounterPath Corporation +1.320.320.3344 ext 1114

(TABLES TO FOLLOW)

Balance Sheet

Statement Sheet