CounterPath Reports Third Quarter Fiscal 2012 Financial Results

VANCOUVER , March 12, 2012 /CNW/ - 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 three months ended January 31, 2012 .

"Sales and margins were strong again this quarter, particularly from our mobile applications, in spite of it being a seasonally softer period, and we achieved positive operating income reflecting the inflection point we are at in our growth," said Donovan Jones , President and Chief Executive Officer. "Our strategy of augmenting our industry leading desktop softphone with our iPhone, iPad and Android mobile applications is proving sound. The market is getting stronger for our mobile applications as smartphone sales continue to grow and now outpace sales of PCs.  We are seeing significant interest from global service providers who are increasingly looking to deploy softphone applications to compete with the over-the-top threats just as Skype," continued Jones.

The quarter ended January 31

For the quarter ended January 31, 2012 , revenue was $3.5 million compared to $3.0 million for the same quarter last year. Software revenue was $1.9 million , compared to $1.5 million for the same quarter last year, and service revenue was $1.6 million , compared to $1.5 million for same quarter last year. Increased sales reflect greater sales of products to original equipment manufacturers, as then as increased sales of mobile applications.

About CounterPathCounterPath's SIP-based VoIP softphones are changing the face of telecommunications. An industry and user favorite, Bria softphones for desktop and mobile devices, at the same time with the company's server applications and Fixed Mobile Convergence solutions, enable service providers, OEMs and enterprises large and small around the globe to offer a seamless and unified communications experience across both fixed and mobile networks. Standards-based, cost-effective and reliable, CounterPath's award-winning solutions power the voice and video calling, messaging, and presence offerings of customers just as Alcatel-Lucent, AT&T, Verizon, BT, Mobilkom Austria , Rogers, Avaya, BroadSoft, Cisco Systems, GENBAND, Metaswitch Networks, Mitel and NEC. For more information, visit  www.counterpath.com.

Non-GAAP Financial MeasuresThis 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 pursuant to this agreement GAAP.  Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared pursuant to this agreement 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: The market is getting stronger for our mobile applications as smartphone sales continue to grow and now outpace sales of PCs1.

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: general economic conditions as they affect CounterPath and its current and prospective clients, including a continued downturn in general economic conditions internationally, the Company's ability to remain competitive as other better financed parties develop and release competitive products, the Company's ability to control its operating expenses, which may adversely affect its financial condition, 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, the impact of intellectual property litigation that could materially and adversely affect our business, the success by the Company of the sales of its current and new products, the impact of innovation changes on the Company's products and on our industry, the failure to develop new and innovative products using the Company's technologies, 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.