CounterPath Reports Fourth Quarter and Fiscal 2011 Financial Results

VANCOUVER, July 26, 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 its fourth fiscal quarter and fiscal year 2011. CounterPath's fiscal year runs May 1 to April 30.

"Strong sales through the fourth quarter enabled CounterPath to post record quarterly and annual earnings driven by continued demand for our desktop and mobile VoIP applications with license revenue in the fourth quarter growing 49% over the prior quarter," stated Donovan Jones, President and Chief Executive Officer. "While fiscal 2011 we made significant inroads in developing channel partners through which we expect to continue to leverage complementary to our direct sales. Should the contingency arise, the extension of our suite of applications to Apple iOS and Google Android mobile and tablet devices has positioned CounterPath in the rapidly growing market segment. We expect fiscal 2012 to reflect solid business growth overall, nevertheless typical seasonality on a quarterly basis.

"We have laid the foundation for our social networking strategy in all our mobile and desktop softphones and when coupled with our Networks Convergence Gateway and provisioning server, we are uniquely positioned to take advantage of the multi-billion user addressable market through our channel partners and operator clients. The communications landscape is rapidly changing to socially enabled mobile devices leveraging cloud based infrastructure and CounterPath is in the sweet spot," continued Jones.

Revenue was $3.2 million for the quarter ended April 30, 2011 compared to $2.7 million for the same quarter last year. Software revenue for the quarter ended April 30, 2011 was $2.1 million compared to $2.4 million for the same quarter last year. Service revenue for the quarter ended April 30, 2011 was $1.1 million compared to $0.4 million for same quarter last year.

Revenue was $11.0 million for the year ended April 30, 2011 compared to $8.0 million for last year. Software revenue for the year ended April 30, 2011 was $7.2 million compared to $6.0 million for last year. Service revenue for the year ended April 30, 2011 was $3.8 million compared to $2.0 million last year.

The Company as well announced today that it has retained the services of Renmark Financial Communications Inc. to assist in its investor relations activities. In consideration of the investor relations services to be provided, the Company has agreed to a to pay a retainer of CDN$6,000 per month to Renmark Financial Communications Inc. starting on August 1, 2011 for a minimum of six months. Renmark Financial Communications Inc. does not have any interest, directly or indirectly, in CounterPath Corporation or its securities, or any right or intent to acquire such an interest.

Award-winning provider of innovative desktop

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, Cisco Systems, 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 margin which excludes stock-based compensation and amortization of intangible asset charges relative to gross profit margin calculated pursuant to this agreement GAAP; and non-GAAP operating loss which excludes stock-based compensation and amortization of intangible asset charges relative to operating loss 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: While fiscal 2011 we made significant inroads in developing channel partners through which we expect to continue to leverage complementary to our direct sales; Just in case, the extension of our suite of applications to Apple iOS and Google Android mobile and tablet devices has positioned CounterPath in the rapidly growing market segment; We expect fiscal 2012 to reflect solid business growth overall, nevertheless typical seasonality on a quarterly basis; We have laid the foundation for our social networking strategy in all our mobile and desktop softphones and when coupled with our Networks Convergence Gateway and provisioning server, we are uniquely positioned to take advantage of the multi-billion user addressable market through our channel partners and operator clients; and The communications landscape is rapidly changing to socially enabled mobile devices leveraging cloud based infrastructure and CounterPath is in the sweet spot.

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 failure to develop new and innovative products using the Company's technologies, the Company's ability to remain competitive as other parties develop and release competitive products, the Company's ability to retain the employees necessary to continue innovation and development of current and new products, 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 the VoIP industry, the compatibility of the Company's products with new computer operating systems, the rate of adoption by service providers and the general public of VoIP as a replacement for regular and cellular phone service, general economic conditions as they affect CounterPath and its current and prospective clients, including a continued downturn in general economic conditions internationally, the ability of the Company to control costs operating, general administrative and other expenses, and insufficient investor interest in the Company's securities which may impact on the Company's ability to raise additional financing as required.  Readers should as well refer to the risk disclosures outlined in the Company's quarterly reports on Form 10-Q, 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.

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