CounterPath Reports Q406 Revenue Guidance and FY07 Forecast
24 May 2006 - 11:30PM
PR Newswire (US)
VANCOUVER, May 24 /PRNewswire-FirstCall/ -- 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." About CounterPath
CounterPath Solutions, Inc., formerly Xten Networks, Inc., is a
leading 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. With over 150 customers in
more than 30 countries, CounterPath's technology is deployed in
more than 6,000,000 IP endpoints worldwide. For more information
please visit http://www.counterpath.com/ 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 include statements regarding management's belief that:
(1) total revenues for the fourth quarter ended April 30, 2006 are
anticipated to increase to $1.43 million, (2) total revenues for
the fiscal year ended April 30, 2006 are anticipated to increase to
$4.58 million, (3) that our current licensing and support
agreements with tier one customers will generate a significant
portion of our future revenues, (4) total revenues for the fiscal
year ended April 30, 2007 will exceed $10 million, (5) our revenue
expectations for 2007 are supported by our existing contracts and a
conservative funnel conversion rate on near term opportunities, and
(6) our continued focus on developing and integrating solutions
will ensure our success. It is important to note that actual
outcomes and our 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 (1) our ability to remain competitive with eyeBeam(TM) and our
other applications as other parties develop and release competitive
products, (2) our ability to retain the employees necessary to
continue research and development of our software products, (3) our
success selling our products, (4) the ability to maintain and
increase our current licensing and support agreements, (5) the
impact of technology changes on our software products and on the
VoIP industry, (6) the compatibility of our software products with
new computer operating systems, (7) the rate of adoption by service
providers and the general public of VoIP as a replacement for
regular and cellular phone service, (8) general economic conditions
as they affect our customers, (9) uncertainties as to the size of
our market, (10) our ability to control costs operating, general
administrative and other expenses, (11) current or future
government regulations affecting the use of our products, (12) the
degree of liability or protection from current and future patents,
and (13) insufficient investor interest in our securities which may
impact on our ability to raise additional financing as required.
Readers should also refer to the risk disclosures outlined in our
quarterly reports on Form 10-QSB, annual reports on Form 10-KSB and
our other disclosure documents filed from time-to-time with the
Securities and Exchange Commission. Given these risks and
uncertainties, investors are cautioned not to place undue reliance
on such forward-looking statements and no assurances can be given
that such statements will be achieved. No forward-looking statement
is a guarantee of future results. We disclaim any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
For further information on CounterPath, please contact: Todd Hanas
Louise Tipton (LEWIS Public Relations) Investor Relations Media
Relations +1.866.869.8072 +1.415.992.4400 DATASOURCE: CounterPath
Solutions, Inc. CONTACT: Todd Hanas, Investor Relations,
1-866-869-8072, ; Louise Tipton (LEWIS Public Relations), Media
Relations, (415) 992-4400,
Copyright