CounterPath Reports First Quarter Fiscal 2008 Financial Results
September 14 2007 - 4:00PM
PR Newswire (US)
VANCOUVER, Sept. 14 /PRNewswire-FirstCall/ -- CounterPath
Solutions, Inc. (OTCBB: CTPS), a leading provider of multimedia
VoIP softphones and SIP applications, today announced its financial
and operating results for its first quarter ended July 31, 2007.
Recent financial and operating highlights include: - Quarterly
revenues for the three months ended July 31, 2007 of $1.2 million
compared to $1.3 million for the three months ended April 30, 2007
and $1.8 million for the three months ended July 31, 2006. - The
launch of Bria(TM) 2.0, the latest CounterPath softphone client
application, supporting a number of new usability and customization
features and enabling service providers and equipment manufacturers
to present a highly flexible, user-friendly VoIP solution for
consumer markets. - The completion of the acquisition of NewHeights
Software Corporation as of August 2, 2007. The acquisition,
together with an investment from Wesley Clover, a private equity
firm headed by Sir Terence H. Matthews, will allow CounterPath to
combine its existing softphone solutions with the NewHeights
enterprise softphone and IP application server products, enabling
CounterPath to provide best in class voice and multimedia
collaboration services to a wider range of customers within the IP
communications market. "I believe CounterPath is well positioned to
increase its business in both the enterprise and carrier markets,"
said Greg Pelling, Chief Executive Officer of CounterPath. "We are
successfully delivering on our core strategy of focusing on tier
one carriers, and have now expanded our value proposition with the
acquisition of NewHeights and the addition of its enterprise
software and IP application server products to our product line.
The steps we are currently taking to advance the company include:
an increased focus on revenue growth through the expansion of our
sales team and marketing efforts, leveraging product synergies to
address enterprise markets, and achieving operational synergies
between CounterPath and NewHeights." Financial Results -
(Unaudited) (All amounts in U.S. dollars and in accordance with
U.S. GAAP unless otherwise specified. Financial results do not
include financial results of NewHeights Software Corporation) For
the quarter ended July 31, 2007, revenues were $1.2 million
compared to $1.8 million for the quarter ended July 31, 2006.
Software revenues were $769,008 for the quarter ended July 31, 2007
compared to $1.4 million for the quarter ended July 31, 2006. For
the quarter ended July 31, 2007, service revenues were $457,783
compared to $351,162 for the comparable quarter ended 2006.
Operating expenses for the quarter ended July 31, 2007 were $1.9
million compared to $1.8 million for quarter ended July 31, 2006.
Sales and marketing expenses increased to $454,883 for the quarter
ended July 31, 2007 from $318,608 for the comparable period in
2006. Research and development expense was $766,468 for the quarter
ended July 31, 2007 compared to $754,934 for the quarter ended July
31, 2006. General and administrative expenses were $724,527 for the
quarter ended July 31, 2007 compared to $689,672 for the quarter
ended July 31, 2006. For the quarter ended July 31, 2007,
CounterPath incurred interest expense, net of interest income of
$125,052, compared to interest expense, net of interest income of
$30,961 for the comparable period last year. The net loss for the
quarter ended July 31, 2007 was $1.2 million, or $(0.03) per share,
compared to a net loss of $478,142, or $(0.01) per share, recorded
for the quarter ended July 31, 2006. As of July 31, 2007,
CounterPath had $1.4 million in cash compared to $1.7 million at
April 30, 2007. The company's working capital was $1.0 million as
of July 31, 2007 compared to $1.9 million at April 30, 2007.
Subsequent to the quarter end, on August 2, 2007, CounterPath
announced that it had acquired all of the shares of NewHeights
Software Corporation through the issuance of 38,400,820 shares of
common stock and 1,849,180 preferred shares issued from a
wholly-owned subsidiary of the Company that are exchangeable into
1,849,180 shares of common stock of the Company. Upon closing, the
convertible debenture holders of the Company converted their
existing debentures in the amount of $4 million into 10 million
shares of common stock. In addition, CounterPath completed a
private placement of $1.3 million issuing 3.25 million shares of
common stock at $0.40 and entered into subscription agreements to
raise an additional $4.2 million through a series of closings over
a seven month period ending March 2, 2008.