CounterPath Signs Multi-Million Dollar Contract with Integrator
Vancouver, BC, Canada — July 09, 2015
CounterPath Corporation (NASDAQ: CPAH) (TSX: CCV), a developer of award-winning over-the-top (OTT) Unified Communications solutions for enterprises and operators, today announced that an integrator has signed a multi-year, multi-million dollar contract with CounterPath. Under the terms of the agreement, the integrator has initially ordered $400 thousand of Bria, SDK and Stretto software and services of an expected total order of approximately $2 million over the next three years. The integrator is contemplating purchasing an additional $3 million of software and services during the same three year period, bringing the total deal value to approximately $5 million.
According to Analysys Mason, a research firm, the Sub-Saharan telecom market is growing at a 6% CAGR, and will reach $65 billion by 2018. Most of this growth is coming from the mobile market, which is growing at a 7% CAGR, faster than any other market in the world, due to the adoption of low cost smartphones and the roll-out of high-speed wireless networks. According to Frost & Sullivan, this rapid growth is presenting significant opportunities for telecommunication companies, device and module vendors and application providers.
“We are excited to formalize this relationship, and look forward to supporting our new partner’s business plan in Sub-Saharan Africa,” said Steve Kinsey, Executive Vice President of Sales at CounterPath. “In South Africa alone, there are 20 million smartphone users, representing 38% of the population. Of these, 81% access the internet using their smartphone – making them ideal users of CounterPath technology for reduced costs and higher productivity. This agreement validates our go-to-market strategy, which includes developing our sales channel by partnering with leading resellers and integrators across the communications sector.”
About CounterPath
CounterPath’s SIP-based VoIP softphones are changing the face of telecommunications. An industry and user favorite, Bria softphones for desktop and mobile devices, together with the Company’s server applications and Fixed Mobile Convergence (FMC) solutions, enable service providers, OEMs and enterprises to offer a seamless and unified communications experience across both fixed and mobile networks. 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 Alcatel-Lucent, AT&T, Avaya, BroadSoft, BT, Cisco Systems, GENBAND, Metaswitch Networks, Mitel, NEC, Network Norway, Rogers and Verizon.
For more information about CounterPath’s Bria softphone applications and provisioning solutions, visit: mrkt-stg.counterpath.com/products.
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 such as the following: (1) Under the terms of the agreement, the integrator has initially ordered $400,000 of Bria, SDK and Stretto software and services of an expected total order of approximately $2 million over the next three years; (2) The integrator is contemplating purchasing an additional $3 million of software and services during the same three year period, bringing the total deal value to approximately $5 million.
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) general economic conditions as they affect CounterPath and its customer; (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 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 CounterPath’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, or in the 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.
Contact:
Steven Hards
Vice President of Investor Relations
[email protected]
(604) 637-6498
