CounterPath Reports Second Quarter Fiscal 2012 Financial Results

VANCOUVER, Dec. 14, 2011 /PRNewswire/ - CounterPath Corporation, an award-winning provider of desktop and mobile VoIP (Voice over Internet Protocol) software products and solutions, today announced the financial and operating results for the second quarter of fiscal year 2012.

"We are pleased with our quarterly results showing strong revenue growth and positive income.  Our earnings, margins, and income were at record levels resulting from continued expansion of our customer base, sales of our mobile applications and a seasonally strong quarter," stated Donovan Jones, President and Chief Executive Officer.  "With Apple's iOS and Google's Android mobile and tablet operating systems representing over 67% of worldwide market share of the smartphone segment, CounterPath is so then positioned to be a leading provider of consumer to enterprise grade, mobile softphone applications.  We intend to continue investing in developing leading solutions to address the market possibility fueled by global wireline and wireless operators.  Just in case, our strategy of increasing our indirect sales through channel partners continued to advance while the quarter," continued Jones.

The quarter ended October 31

For the quarter ended October 31, 2011, revenue was $3.5 million compared to $2.6 million for the same quarter last year.  Software revenue for the quarter ended October 31, 2011 was $2.1 million compared to $1.8 million for the same quarter last year. Service revenue for the quarter ended October 31, 2011 was $1.3 million compared to $0.8 million for same quarter last year.

CounterPath Corporation is an award-winning 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 solutions that enable service providers, enterprises and Original Equipment Manufacturers to cost-effectively integrate voice, video, presence and Instant Messaging applications into their VoIP offerings and extend functionality across both fixed and mobile networks.

CounterPath's clients include some of the world's largest telecommunications service providers and network equipment providers including AT&T, Verizon, BT, Mobilkom Austria, Avaya, BroadSoft, Cisco Systems, GENBAND, Metaswitch and Mitel.

This news release contains "non-GAAP financial measures". The non-GAAP financial measures in this news release consist of non-GAAP gross profit and non-GAAP income from operations which exclude non-cash stock-based compensation and amortization of intangible asset charges relative to gross profit and income from operations calculated under GAAP.  Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared under GAAP. CounterPath utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. CounterPath believes that the inclusion of non-GAAP financial measures, at the same time with GAAP measures, provides investors with an alternative presentation useful to investors' understanding of CounterPath's core operating results and trends.

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, just as the following: With Apple's iOS and Google's Android mobile and tablet operating systems representing over 67% of worldwide market share of the smartphone segment, CounterPath is so then positioned to be a leading provider of consumer to enterprise grade, mobile softphone applications; and  We intend to continue investing in developing leading solutions to address the market possibility fueled by global wireline and wireless operators.

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: the Company's ability to remain competitive as other better financed parties develop and release competitive products, lack of cash flow which may adversely affect our operations, general economic conditions as they affect CounterPath and its current and prospective clients, including a continued downturn in general economic conditions internationally, the success by the Company of the sales of its current and new products, the impact of research changes on the Company's products and on our industry, the impact of intellectual property litigation that could materially and adversely affect our business the failure to develop new and innovative products using the Company's technologies, a decline in our stock price or insufficient investor interest in the Company's securities which may impact on the Company's ability to raise additional financing as required, and the potential dilution to shareholders or overhang on our share price of our outstanding stock options and warrants.  Readers should as well refer to the risk disclosures outlined in the Company's quarterly reports on Form 10-Q or Form 10-Q/A, or in the annual reports on Form 10-K or Form 10-K/A, 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.