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CounterPath Reports First Quarter Fiscal 2021 Financial Results - Year-over-Year Recurring Revenue Growth of 46%
Thursday, September 10, 2020Company Profile | Follow Company
Year-over-Year Recurring Revenue Growth of 46%
Vancouver, BC, September 10, 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 first quarter ended July 31, 2020.
First Quarter Fiscal 2021 Financial Highlights (unaudited)
Management Commentary
"I'm proud of our team as we posted another strong quarter and furthered our goal of increasing our recurring revenue," said David Karp, CEO. "With recurring revenue (subscriptions, support, and maintenance) growing 46% over the same quarter last year, this portion of our business now represents 61% of our overall revenue. Our channel partner program and Bria Teams are driving our subscription revenue. Offering our software through subscriptions allows us to stay engaged with our customers and grow with them as they deploy our communication software and services, resulting in the increased lifetime value of our customers."
"The unified communications market is large and incredibly dynamic, and CounterPath holds a strong position in the softphone category. We excel in areas where customers want to leverage existing networks and where deployments are challenging and require unique features, reliable security, and interoperability. We are focused on certain vertical markets to maximize our applications' value, such as within the health care, retail, call center, and financial markets. We will continue to market our offerings to these higher value verticals over the fiscal year," continued Karp.
"While there remains uncertainty due to the current disruptions to the economy, we have benefitted from work-from-home initiatives undertaken as a result of the COVID-19 pandemic," said Karp. "Our pipeline for the current quarter remains steady, and we expect again to see revenue growth over the comparable period last year."
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 $3.4 million for the quarter ended July 31, 2020 compared to $2.6 million for the same quarter in the last fiscal year. Software revenue was $0.8 million compared to $1.0 million for the same quarter in the last fiscal year, subscription, support and maintenance revenue was $2.1 million compared to $1.4 million for the same quarter in the last fiscal year, and professional services and other revenue was $0.5 million compared to $0.1 million for the same quarter in the last fiscal year.
Operating expenses for the quarter ended July 31, 2020 were $3.1 million compared to $3.3 million for the same quarter in the last fiscal year. Operating expenses for the quarter ended July 31, 2020 included non-cash stock-based compensation expense of $0.1 million (2019 - $0.1 million). Cost of sales was $0.6 million for the quarter ended July 31, 2020 compared to $0.5 million for the same quarter in the last fiscal year. Sales and marketing expenses were $0.9 million for the quarter ended July 31, 2020 compared to $1.0 million for the same quarter in the last fiscal year. For the quarter ended July 31, 2020, research and development expenses were $1.0 million and general and administrative expenses were $0.7 million compared to $1.1 million and $0.6 million, respectively, for the same quarter in the last fiscal year.
Interest and other income (expense), net for the quarter ended July 31, 2020, was ($0.3) million compared to ($0.2) million for the quarter ended July 31, 2019. Interest and other income (expense), net for the quarter, included a foreign exchange loss of $0.3 million and interest expense of $0.1 million, offset by a gain on the change in fair value of derivative instruments of $0.2 million. 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.
Net income for the quarter ended July 31, 2020 was $0.0 million, or $0.00 per share, compared to net loss of $0.9 million, or $0.16 per share, for same quarter in the last fiscal year. As at July 31, 2020, the Company had $2.7 million in cash, compared to $2.4 million as at April 30, 2020.
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 and hosted voice call servers to extend seamless and secure unified communications and collaboration services to users regardless of their location and network. CounterPath technology meets the unique requirements of several industries, including the contact center, retail, warehouse, hospitality, and healthcare verticals. Its solutions are deployed worldwide by 8x8, Airbnb, AmeriSave, Aspect, BT, Citibank, Comcast, Fusion, Fuze, Honeywell, Liberty Global, Windstream and others. Learn more at 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, outlook, expectations or intentions regarding the future, including the statement that (1) offering the Company's software through subscriptions allows it to stay engaged with its customers and grow with them as they deploy its communication software and services; (2) subscriptions for the Company's software increases the lifetime value of the customer; (3) the Company will continue to market its offerings to these higher value verticals over the fiscal year; and (4) the Company's pipeline remains steady, and for the coming quarter, the Company expects to again see revenue growth over the comparable period last year. 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; (11) the potential dilution to shareholders or overhang on the Company's share price of its outstanding stock options; and (12) continuation or acceleration of the work at home movement. 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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