2008-07-29 17:19:00
CounterPath Reports Fiscal 2008 Financial Results
VANCOUVER, July 29 /EMWNews/ - 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 fiscal year ended April 30, 2008.
Financial and operating highlights for the year include: - Record revenues of $9.1 million for fiscal 2008 compared to $5.7 million for fiscal 2007. - Acquisition of three companies, NewHeights Software Corporation, FirstHand Technologies Inc. and BridgePort Networks, Inc., which have not only broadened the Company's intellectual property base and expanded its product offerings but also broadened the Company's focus beyond the consumer VoIP market to include both enterprise and mobility markets. - Approval from the TSX-Venture Exchange to begin trading on the TSX-V under the stock symbol 'CCV' in August, 2008. - The successful product introductions of Quick Conference, Bria 2.2 and Bria Add-In for Microsoft Outlook. "This past year, CounterPath has made several important strides toward achieving our mission of empowering people to communicate using voice, video, messaging and presence on multiple devices, across multiple platforms and over fixed and mobile networks," said Donovan Jones, President and CEO, CounterPath. "The integration of innovative mobile technologies and skilled team members has enabled us to broaden our focus beyond the consumer VoIP market to include both enterprise and mobility markets. Fiscal 2009 will see CounterPath leverage this platform to capitalize on the growing market for desktop and mobile applications and continue to build on our commitment to unifying the end-user communications experience and increasing shareholder value." 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 from August 2, 2007 and the financial results for FirstHand Technologies Inc. and BridgePort Networks, Inc., from February 1, 2008) For the fiscal year ended April 30, 2008, revenue was $9.1 million compared to $5.7 million for fiscal 2007. The acquisitions of NewHeights, FirstHand and BridgePort during fiscal 2008 accounted for $2.4 million of the revenue increase. Software revenue for the year was $6.4 million compared to $4.1 million for the previous year. Service revenue for the fiscal year ended April 30, 2008 was $2.6 million compared to $1.6 million for fiscal 2007. Operating expenses for the fiscal year ending April 30, 2008 were $20.9 million compared to $8.5 million for fiscal 2007. The increase in operating expenses was primarily due to the addition of cash and non-cash operating expenses related to the acquisition of NewHeights, FirstHand and BridgePort. Operating expenses for the fiscal year ended April 30, 2008 include a non-cash charge of $1.4 million from amortization of intangible assets acquired from NewHeights, FirstHand and BridgePort and a non-cash $1.6 million stock-based compensation expense. Sales and marketing expenses were $3.9 million for the fiscal year ended April 30, 2008 compared to $1.7 million for the previous year. For the fiscal year ended April 30, 2008, research and development expenses were $6.9 million and general and administrative expenses were $6.4 million, compared to $2.7 million and $2.5 million, respectively, for the previous year. The net loss for the fiscal year ended April 30, 2008 was $12.5 million, or a loss of $0.70 per share, compared to a net loss of $3.4 million, or a loss of $0.44 per share for fiscal 2007. At April 30, 2008, the Company had $6.2 million in cash, compared to $1.7 million at April 30, 2007. At April 30, 2008, the Company's working capital was $7.6 million, compared to $1.9 million at April 30, 2007.
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 http://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.
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 Technologies and BridgePort Networks, (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, annual reports on Form 10-KSB and the
Company's other disclosure documents filed from time-to-time with the
Securities and Exchange Commission.
Disclaimer: The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
COUNTERPATH CORPORATION
(Formerly CounterPath Solutions, Inc.)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Stated in U.S. Dollars)
April 30, April 30,
2008 2007
------------- -------------
Assets
Current assets:
Cash $ 6,223,613 $ 1,680,220
Accounts receivable (net of allowance
for doubtful accounts of $407,050 and
$56,817, respectively) 5,409,658 1,924,899
Investment tax credits recoverable 1,061,133 -
Prepaid expenses and deposits 646,679 129,534
------------- -------------
Total current assets 13,341,083 3,734,653
Deposits 103,017 74,613
Equipment 736,854 276,599
Intangible assets (net of accumulated
amortization of $1,364,365 and $nil) 8,534,666 -
Goodwill 8,674,990 -
Other assets 177,749 25,716
------------- -------------
Total Assets $ 31,568,359 $ 4,111,581
------------- -------------
------------- -------------
Liabilities and Stockholders' Equity
(Capital Deficit)
Current liabilities:
Accounts payable and accrued
liabilities $ 4,529,201 $ 1,314,083
Due to related parties - 25,417
Unearned revenue 936,343 408,188
Customer deposits 85,283 5,615
Warranty accrual 144,347 83,769
------------- -------------
Total current liabilities 5,695,174 1,837,072
Deferred Lease Inducements 97,734 -
Convertible debentures - 3,369,230
Unrecognized tax benefit 98,575 -
------------- -------------
Total liabilities 5,891,483 5,206,302
------------- -------------
Stockholders' equity (capital deficit):
Preferred stock, $0.001 par value
Authorized: 100,000,000
Issued and outstanding: April 30,
2008 - 1; April 30, 2007 - Nil - -
Common stock, $0.001 par value
Authorized: 83,076,900
Issued and outstanding:
April 30, 2008 - 25,921,797;
April 30, 2007 - 7,588,197 25,921 7,588
Additional paid-in capital 43,398,849 4,850,422
Accumulated deficit (18,479,483) (5,872,151)
Accumulated other comprehensive
income (loss) - currency translation
adjustment 731,589 (80,580)
------------- -------------
Total stockholders' equity
(capital deficit) 25,676,876 (1,094,721)
------------- -------------
Liabilities and Stockholders' Equity $ 31,568,359 $ 4,111,581
------------- -------------
------------- -------------
COUNTERPATH CORPORATION
(Formerly CounterPath Solutions, Inc.)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
(Stated in U.S. Dollars)
Years Ended April 30,
----------------------------
2008 2007
------------- -------------
Revenue:
Software $ 6,437,192 $ 4,099,369
Service 2,649,708 1,625,572
------------- -------------
Total revenue 9,086,900 5,724,941
Operating expenses:
Cost of sales (includes depreciation of
$136,274 and $137,321 and amortization
of intangible assets of $1,364,365 and
$nil) 3,089,073 1,594,571
Sales and marketing 3,945,290 1,682,685
Research and development 6,863,235 2,727,914
General and administrative 6,440,493 2,514,766
Restructuring costs 558,394 -
------------- -------------
Total operating expenses 20,896,485 8,519,936
------------- -------------
Loss from operations (11,809,585) (2,794,995)
Interest and other income (expense), net
Interest income 125,970 55,083
Interest expense (695,961) (615,530)
Loss on sale of assets - (9,209)
Foreign exchange loss (155,343) -
------------- -------------
Net loss for the year (12,534,919) (3,364,651)
Other comprehensive income (loss):
Foreign currency translation adjustments 812,169 (6,301)
------------- -------------
Comprehensive loss $(11,722,750) $ (3,370,952)
------------- -------------
------------- -------------
Net loss per share:
Basic and diluted $ (0.70) $ (0.44)
------------- -------------
------------- -------------
Weighted average common shares outstanding: 17,808,027 7,587,463
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