UPDATE: CounterPath Corp. (CPAH) Tops 1Q21 EPS by 2c, Revenues Miss

CounterPath Corp. (NASDAQ: CPAH) reported Q1 EPS of $0.04, $0.02 better than the analyst estimate of $0.02. Revenue for the quarter came in at $3.4 million versus the consensus estimate of $3.8 million.

First Quarter Fiscal 2021 Financial Highlights (unaudited)

• Revenue of $3.4 million for the first quarter of fiscal 2021, an increase of 33% compared to revenue of $2.6 million for the first quarter of fiscal 2020.
• Subscription, support and maintenance revenue (revenue of a recurring nature) for the first quarter of fiscal 2021 grew by 46% year-over-year to $2.1 million.
• Billings (revenue plus change in deferred revenue) increased by 42% to $3.6 million for the first quarter of fiscal 2021, compared to $2.5 million for the first quarter of fiscal 2020.
• Gross margin of 84% in the first quarter of fiscal 2021, compared to gross margin of 80% in the first quarter of fiscal 2020.
• Income from operations of $0.3 million for the first quarter of fiscal 2021, compared to loss from operations of $0.7 million for the first quarter of fiscal 2020.
• Non-GAAP income from operations of $0.4 million for the first quarter of fiscal 2021, compared to non-GAAP loss from operations of $0.6 million for the first quarter of fiscal 2020.
• Net income of $0.0 million, or $0.00 per share for the first quarter of fiscal 2021, compared to net loss of $0.9 million, or $0.16 per share, for the first quarter of fiscal 2020.
• Non-GAAP net income of $0.3 million, or $0.04 per share for the first quarter of fiscal 2021, compared to non-GAAP net loss of $0.7 million, or $0.12 per share, for the first quarter of fiscal 2020.
• Cash of $2.7 million as of July 31, 2020 compared to $2.4 million as of April 30, 2020.

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."

For earnings history and earnings-related data on CounterPath Corp. (CPAH) click here.

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