CounterPath Reports Second Quarter 2006 Financial Results
16 December 2005 - 1:31AM
PR Newswire (US)
VANCOUVER, Dec. 15 /PRNewswire-FirstCall/ -- CounterPath Solutions,
Inc. (OTCBB: CTPS), the leading provider of VoIP (Voice over
Internet Protocol), Video over IP, Instant Messaging (IM), and
Presence SIP softphones, today announced results for its fiscal
2006 second quarter and for the six-month period ended October 31,
2005. Total revenues for the Quarter ended October 31, 2005
(FY06-Q2) climbed to a record $1,086,101, compared to $827,296 for
the quarter ended July 31, 2005 (FY06-Q1), an increase of 31
percent quarter-over-quarter. This compared to $677,364 in the
quarter ended October 31, 2004 (FY05-Q2), an increase of 60 percent
compared to the same quarter in the previous year. "We are happy to
report that our revenues exceeded our previously released guidance
for the quarter," stated Mark Bruk, Chairman and CEO of
CounterPath. "Also, we continue to believe that the market for soft
endpoints or softphones is entering a significant growth phase, and
that we will continue to expand our leadership position in this
market."(x) "I am particularly pleased with the growth in our
professional services' revenue, in line with our strategy of
working with our service provider and infrastructure provider
customers, aligning our application to meet the requirements of
their customer base, in advance of deployments," continued Bruk.
Financial Highlights for the Second Quarter 2006 (FY06 Q2 vs. FY05
Q2) - Increase of revenue by 60% to $1,086,101 (3M 2005: $677,364)
- Increase in expenses by 54% to $1,344,826 (3M 2005: $875,639) -
Net loss of $258,725 (3M 2005: $198,275) - Cash Balance of
$920,351(3M 2005: $1,098,595) As a percentage of revenue our net
loss has decreased from 34.2% in fiscal 2005 to 29.7% in fiscal
2006. Financial Highlights for the First Six Months 2006 (FY06 Q1
& Q2 vs. FY05 Q1 & Q2) - Increase in revenue by 64% to
1,913,397 (6M 2005: $1,164,515) - Increase in expenses by 59% to
$2,481,926 (6M 2005: $1,562,447) - Net loss of $568,529 (6M 2005:
$397,932) - Cash Balance of $920,351 (6M 2005: $1,098,595) As a
company CounterPath continues to commit its efforts to the
following four key building blocks: - assembling the best team -
building the best product - focusing on the best customers, while -
creating a culture of innovation The Company's Quarterly Report on
Form 10-QSB including consolidated balance sheet and statement of
operations for the quarter ended October 31, 2005 was filed and is
available for viewing at http://www.sec.gov/. About CounterPath
CounterPath Solutions, Inc., formerly Xten Networks, Inc., 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(R) Magazine's and
INTERNET TELEPHONY(R) 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(R) magazine.
With over 130 customers in more than 30 countries, CounterPath
technology is deployed in more than 5,400,000 IP endpoints
worldwide. For more information please visit
http://www.counterpath.com/. For more information, please contact:
Todd Hanas Tiffany Zinck Investor Relations Media Relations
+1.866.869.8072 +1.604.320.3344 extension 208 pr@counterpath Legal
Note on Forward-Looking Statements Statements in this news release,
which are not purely historical, are forward-looking statements,
including any statements regarding beliefs, plans, expectations or
intentions regarding the future. Forward-looking statements in this
news release are marked by an asterisk (x) and include statements
regarding management's belief that: CounterPath expects significant
growth in the market for its products and that CounterPath will
continue to expand its leadership position in the softphone market.
It is important to note that actual outcomes and CounterPath's
actual results could differ materially from those in such
forward-looking statements. Factors that could cause actual results
to differ materially include risks and uncertainties such as
CounterPath's ability to remain competitive as other parties
develop and release competitive products, CounterPath's ability to
retain the employees necessary to continue research and development
of CounterPath's software products, the success by CounterPath of
the sales of its products, the impact of competitive products on
the sales of CounterPath's products, the impact of technology
changes on CounterPath's software products and on the VoIP
industry, the compatibility of CounterPath's software products with
new computer operating systems, the rate of adoption by service
providers and the general public of VoIP as a replacement for
regular and cellular phone service, general economic conditions as
they affect CounterPath's prospective customers, the ability of
CounterPath 's to control costs operating, general administrative
and other expenses, and insufficient investor interest in
CounterPath's securities which may impact on CounterPath's ability
to raise additional financing as required. Readers should also
refer to the risk disclosures outlined in CounterPath's quarterly
reports on Form 10-QSB, annual reports on Form 10-KSB and
CounterPath's other disclosure documents filed from time-to-time
with the Securities and Exchange Commission. DATASOURCE:
CounterPath Solutions Inc. CONTACT: Todd Hanas, Investor Relations,
1-866-869-8072, ; Tiffany Zinck, Media Relations, (604) 320-3344
extension 208, pr@counterpath
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