CounterPath Solutions, Inc. (OTCBB: CTPS), a leading provider of VoIP (Voice over Internet Protocol), Video over IP, Instant Messaging (IM), and Presence SIP multimedia applications and softphones, today reported revenue guidance for our fourth quarter of fiscal 2006, which ended on April 30th of this year. In addition, CounterPath is releasing a revenue forecast for fiscal 2007, which will end on April 30th of next year.
Total revenues for the fourth quarter ended April 30, 2006 are anticipated to increase by 15% to $1.43 million over third quarter results of $1.23 million. Total revenues for the fiscal year ended April 30, 2006 are anticipated to increase by 47% to $4.58 million over fiscal 2005 results of $3.12 million.
Donovan Jones, President and COO stated, "Our fourth quarter results demonstrate continued execution of our business strategy, building SIP based multi-media applications for service providers, infrastructure providers, cable companies and internet telephony service providers. We have executed a number of licensing and support agreements with tier one customers and a significant portion of our current and future revenue will be derived from these relationships."
Our revenue forecast for fiscal 2007 will exceed $10 million. Our revenue expectations for 2007 are supported by deployments of softphone licenses and services against our existing contracts and a conservative funnel conversion rate on near term opportunities.
"Skype's recent actions to offer free calling in the U.S. and Canada until the end of the year through SkypeOut, have reinforced softphone-based VoIP adoption and will likely accelerate the rollout of service offerings from leading carriers. The traditional telecom and cable companies have revenues in the hundreds of billions and are developing compelling ways of retaining subscribers and creating new revenue streams. A requirement for these carriers will be rapid deployment of services with an improved cost base. Softphone and multimedia applications are a critical component for the success of these carriers." continued Donovan Jones. "Our continued focus on developing and integrating solutions across multiple platforms and devices through presence enabled multimedia applications will ensure our success and have a direct impact on shareholder value."
CounterPath Solutions is a developer of award-winning, high-quality, carrier-grade VoIP (Voice over IP) and Video over IP SIP softphones for service providers, cable operators, Internet telephony service providers, IP PBX manufacturers and OEMs. CounterPath's SIP softphones are available either pre-configured or as a software development kit (SDK), and provide VoIP (Voice over IP), Video over IP, IM (Instant Messaging), and Presence functionality. eyeBeam -- CounterPath's feature-rich SIP Video over IP softphone with IM and Presence -- recently received both Communications Solutions' Magazine's and INTERNET TELEPHONY® Magazine's "Product of the Year" Award for 2004. CounterPath's Pocket PC SIP Softphone was recently named a 2005 Innovation Award winner from INTERNET TELEPHONY® magazine. With over 120 customers in more than 30 countries, CounterPath technology is deployed in more than 5,400,000 IP endpoints worldwide.