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CounterPath Reports Third Quarter Fiscal 2020 Financial Results - Revenue up 8%
Thursday, March 12, 2020Company Profile | Follow Company
Vancouver, BC, March 12, 2020--(T-Net)--CounterPath Corporation (NASDAQ: CPAH) (TSX: PATH), a provider of Unified Communications and Collaboration (UCC) solutions for enterprises and service providers, today announced the financial and operating results for its quarter ended January 31, 2020, being the third quarter of fiscal year 2020.
Third Quarter Financial Highlights (unaudited)
Management Commentary
"During the quarter, we saw continued growth in our recurring revenue which reached a record level of $1.5 million during the quarter, or 56% of total revenue" said David Karp, Chief Executive Officer.
"Our operating costs were their lowest in two years, contributing to break even at the non-GAAP operating income (loss) level. During the quarter we entered into a contract with Honeywell International to provide Honeywell with a new unified communications software solution. Honeywell Smart Talk enables mobile workers to collaborate, enhance productivity and provide superior customer experiences. We are currently working with Honeywell on the Smart Talk go-to-market strategy for its customers, primarily in the retail, healthcare and logistics verticals. We were also chosen by Vodafone Fiji to provide Bria mobile applications and Stretto™ Platform services to enable reliable voice calling for consumers across the Fijian and neighboring islands. Finally, it is not clear what the full extent of the COVID-19 global public health emergency will be and how it will affect business demand or our future results of operations and financial position; however, we expect to see some offsetting benefit from businesses that are seeking unified communications software such as CounterPath's, to allow their workers to work remotely due to the situation."
Recent Business Highlights
Financial Overview
(All amounts in U.S. dollars and in accordance with accounting principles generally accepted in the United States ("GAAP") unless otherwise specified - unaudited).
Revenue was $2.8 million for the quarter ended January 31, 2020 compared to $2.6 million for the same quarter in the last fiscal year. Software revenue was $1.1 million compared to $1.1 million for the same quarter in the last fiscal year, subscription, support and maintenance revenue was $1.5 million compared to $1.4 million for the same quarter in the last fiscal year, and professional services and other revenue was $0.2 million compared to $0.1 million for the same quarter in the last fiscal year.
Operating expenses for the quarter ended January 31, 2020 were $3.0 million compared to $3.6 million for the same quarter in the last fiscal year. Operating expenses for the quarter ended January 31, 2020 included a non-cash stock-based compensation expense of $0.2 million (2019 - $0.1 million). Cost of sales was $0.5 million for the quarter ended January 31, 2020 compared to $0.6 million for the same quarter in the last fiscal year. Sales and marketing expenses were $0.9 million for the quarter ended January 31, 2020 compared to $1.0 million for the same quarter last fiscal year. For the quarter ended January 31, 2020, research and development expenses were $1.0 million and general and administrative expenses were $0.6 million compared to $1.4 million and $0.7 million, respectively, for the same quarter in the last fiscal year.
Interest and other (expense) income, net for the quarter ended January 31, 2020 was ($0.1) million compared to ($0.03) million for the same quarter in the last fiscal year. Interest and other (expense) income, net was primarily comprised of interest expense of $0.1 million related to the loan payable, compared to interest expense of ($0.02) million and a foreign exchange loss of ($0.02) million for the same quarter in the last fiscal year. The foreign exchange gain (loss) represents the gain (loss) on account of translation of the intercompany accounts of the Company's subsidiary which are maintained in Canadian dollars and transactional gains and losses resulting from transactions denominated in currencies other than U.S. dollars.
The net loss for the quarter ended January 31, 2020 was $0.3 million, or $0.04 per share, compared to a net loss of $1.1 million, or $0.18 per share, for the same quarter in the last fiscal year. As of January 31, 2020, the Company had $1.8 million in cash, compared to $1.9 million at April 30, 2019.
About CounterPath
CounterPath Corporation (NASDAQ: CPAH) is revolutionizing how people communicate in today's modern mobile workforce. Its award-winning Bria solutions for desktop and mobile devices enable organizations to leverage their existing PBX or hosted VoIP service to extend seamless and secure unified communications and collaboration to users regardless of their location and network. CounterPath technology meets the unique requirements of several industries, including contact center, retail, warehouse, hospitality, and healthcare verticals. Its solutions are deployed world-wide by 8×8, Airbnb, AmeriSave, BT, Citibank, Comcast, Fusion, Fuze, Liberty Global, Uber, Windstream and others. Learn more at counterpath.com and follow on Twitter @counterpath.
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, including the statement that it is not clear what the full extent of the COVID-19 global public health emergency will be and how it will affect business demand or our future results of operations and financial position; however, we expect to see some offsetting benefit from businesses that are seeking unified communications software such as CounterPath's, to allow their workers to work remotely due to the situation.
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) any direct or indirect negative potential impact or harm that COVID-19 may actually have on the Company's business or its potential/current clients' businesses; (2) the lack of cash flow which may affect the Company's ability to continue as a going concern; (3) the variability in the Company's sales from reporting period to reporting period due to extended sales cycles as a result of selling the Company's products through channel partners or the length of time of deployment of the Company's products by its customers; (4) the Company's ability to manage its operating expenses, which may adversely affect its financial condition and ability to continue to operate as a going concern; (5) the Company's ability to remain competitive as other better financed competitors develop and release competitive products; (6) 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 may cause the Company to be delisted from a stock exchange on which its common stock trades; (7) the impact of intellectual property litigation that could materially and adversely affect the Company's business; (8) the success by the Company of the sales of its current and new products; (9) the impact of technology changes on the Company's products and industry; (10) the failure to develop new and innovative products using the Company's technologies including the refresh of our Software-as-a Service (SaaS) solution; and (11) 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, the Company's 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 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.
Company Snapshot |
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CounterPath, an Alianza Company
Vancouver, BC (InfoTech)
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