Counterpath (TSXV:CCV) yesterday reported its fourth quarter and fiscal 2012 results. Q4 revenue came in at $4.4-million, which was 35% higher than the same period last year. For the year, the company lost $2.12-million on revenue of $14.1-million.
Counterpath CEO Donovan Jones said: “Another solid quarter boosted by strong mobile application demand enabled CounterPath to post record quarterly and annual revenues,” adding: “During fiscal 2012, we also controlled costs and improved profitability, evidenced by our first positive operating income in the fourth quarter and our first positive non-GAAP net income for the full fiscal year. Over the past year, CounterPath’s desktop and mobile solutions have been implemented by several major telecom, OEM and enterprise customers in North America and Europe, while our Bria mobile apps climbed the rankings of both the Apple iTunes App Store and Android Google Play. We enter fiscal 2013 with a strong balance sheet, and the products and solutions to address the large and growing softphone market.”
Byron Capital analyst Tom Astle says Counterpath’s Q4 results were better than he expected. He says the numbers support his thesis that the Vancouver-based company is “strongly positioned at the intersection of next generation voice, IP and Mobility. It’s a market leader in softphones and SIP interfaces, and this positions it well with carriers, enterprises and network equipment providers for next generation communication services,” he said. In a research update to clients today, Astle maintained his SPECULATIVE BUY rating and $3.25 target on Counterpath.
Astle believes Counterpath is well positioned for organic growth in fiscal 2013, noting that only a third of its customers are actually in the deployment phase and Counterpath is deepening its distribution channel. The Byron analyst is particularly encouraged by the addition of former Nortel public carrier group Genband.
Shares of Counterpath on the TSX closed today down 4.7% to $2.85.