Company Profile Page: CounterPath Corporation (NASDAQ: CPAH)
1. Please give us an overview of CounterPath Corporation.
CounterPath is a leading provider of Unified Communications software and solutions for enterprises, carriers and consumers. We were incorporated in 2002 (Nevada), and have sold over $100 million in software and services to leading corporations around the world.
Our product portfolio includes our Bria softphones, our Client Configuration Servers for the configuration and management of the softphones, and our Mobility Gateways that facilitate the seamless handover of live calls between Wi-Fi, Cellular and other networks.
Key customers include Citigroup, Credit Suisse, BOSCH, Comcast and Rogers Communications, Canada’s largest wireless operator by subscribers.
CounterPath is listed on the NASDAQ and TSX stock exchanges and trades under the tickers CPAH and CCV, respectively.
2. On your website, you describe this idea of the “softphone.” What does this mean and what is the demand for “softphone” technology?
Our award winning Bria softphone replaces the traditional desk-top ‘hardphone’ with a software application that resides on a smartphone, tablet or computer. It enables the end-user to make Voice-over-IP (VoIP) calls over a data connection, eliminating the need for a traditional desktop ‘hard phone’ and phone line, while also introducing new functionality – such as instant messaging, collaboration and point-of presence information in a unified interface.
Benefits of a softphone include: (1) lower up front acquisition costs versus a traditional ‘hardphone’, (2) greater functionality (screen sharing, instant messaging, video conferencing), (3) lower ongoing operating costs when the traditional phone line is eliminated, (4), the ability to extend the office number and PBX functionality out to a mobile phone, (5) and the ability to make free calls on a Wi-Fi network when travelling.
The demand for softphones is rising rapidly, as businesses are starting to recognize the benefits offered. We are receiving hundreds of inbound expressions of interest every quarter, some from the largest multinational corporations in the United States and Europe. Financial institutions are interested in Softphones, as they want to reduce operation costs and increase security by bringing all mobile messaging inside the firewall. Call centers are interested in softphones as they want to increase efficiency, reduce operating costs, and improve traceability. Operators are interested in our softphones, as they want to launch and offer their own services to compete with third party Internet OTT services such as Viber, Skype and WhatsApp.
3. Who are your target customers? Do you sell to companies or direct to users?
We have two primary customer segments: businesses and telecommunication operators.
Businesses deploy our products to increase employee productivity, improve security, and to reduce costs. We are particularly strong in the financial services and call center verticals, but also sell to businesses in other sectors, including industrials, high-technology, automotive and energy. Essentially, any business that wants to increase employee productivity while reducing operating costs is a potential customer. Businesses with mobile workforces, such as sales staff or remote workers, leverage our softphones to extend the functions of their PBX to remote workers.
Operators buy our products to launch their own “white labelled” services based on our solutions. Operators typically launch a service based on our products, and they supply our softphones to their subscribers, who are the end-users. The end-users install our softphones on their mobile phones, tablets and PCs to make VoIP calls over a Wi-Fi or high-speed data connection, leading to lower telephony costs – especially when roaming. Rogers (Canada), Comast (USA), Cablemas (Mexico), AltiBox (Norway) and NTT (Japan) have all launched white-labelled services using our products.
4. Where do you see the growth coming from in 2014-15?
We believe CounterPath is positioned for growth. Short term, we expect to grow in the enterprise segment, where we are experiencing strong demand, especially from large global firms, but also from small to medium sized businesses aiming to reduce costs and increase employee productivity. Longer-term, we expect to generate growth in the operator segment, where the market consists of hundreds of millions of end-users.
On a regional basis, we expect to see growth in Europe and Latin America – where we are bolstering our sales force to capitalize upon strong demand and changing market conditions.
5. Does your product fit for a global audience?
Absolutely. As of July, 2014, we have sold more than $10,000 worth of software and services to over 400 different companies in more than 60 countries. In fiscal 2014, over 25% of our revenue was generated from outside North America.
Looking ahead, we expect these numbers to grow, as we are currently staffing up our sales teams in Europe and Latin America. We are also establishing relationships with large systems integrators that do business with many of the largest enterprises and operators in Europe, Latin America and Asia.
In Europe, we see enormous opportunity given the size and nature of the market. RCS, an alternative technology that was gaining traction in Europe seems to have stalled, and operators are now clamoring for proven solutions they can deploy in the near-term. Given our track record with operators, including Rogers Communications, Comcast and NTT – European operators are now turning to us for solutions. Additionally, we see opportunity in the large financial services sector, where data security and costs are increasingly in focus, and the call center segment.
6. What factors differentiate CounterPath from your competitors?
CounterPath’s product portfolio is unique.
First, our Bria softphones support more operating systems - including many versions of the Windows, iOS, Android, and QNX - than any other vendor we know of – making CounterPath the natural choice for any organization implementing a Bring-Your-Own-Device (BYOD) to work program where they no longer control the user equipment. Additionally, our Bria Softphones have been developed to interwork with all major IP-PBX vendor equipment, making them the industry standard for large multinational organizations with diverse IT environments.
Finally, we have a strong intellectual property portfolio consisting of 25 patents and patents pending that are key to the Unified Communications sector and that create value for the company.
7. What is the background of the CounterPath management team?
CounterPath has a strong leadership team, consisting of seasoned industry veterans.
The Chairman of the Board, Sir Terrence Matthews, is a technology industry legend. Sir Terry has founded or funded over 80 companies, including Newbridge Networks, which he sold for approximately $7 billion dollars to Alcatel and Mitel, a world leader in the design and manufacture of enterprise communications solutions.
At the Executive level, we are led by Donovan Jones, our President and CEO. Mr. Jones, a technology industry veteran, joined CounterPath over nine years ago and has since grown revenue by over 300% and completed three acquisitions, expanding our product line and bolstering our intellectual property portfolio. Prior to joining CounterPath, Mr. Jones worked with TELUS, Canada’s second largest operator, and in the investment banking industry. Mr. Jones holds an MBA from the University of Calgary and serves on the Board of Directors for the BC Technology Industry Association (BCTIA).
Dave Karp, our Chief Financial Officer, manages the accounting, finance, planning and investor relations functions of the business. Prior to joining CounterPath, Mr. Karp was a Vice President of Investment Banking at BMO Nesbitt Burns, where he helped raise hundreds of millions of dollars through equity financings, and managed a number of merger and acquisition processes. Mr. Karp holds an MBA from the Ivey School of Business and is a CFA Charter holder.
Todd Caruthers is our Executive Vice President of Marketing and Products. He is focused on developing and executing CounterPath’s go-to-market and selling strategies for our entire product line. Prior to joining CounterPath, Mr. Caruthers served as VP of Marketing and Business Development at Bridgeport Networks (acquired by CounterPath). Mr. Caruthers also worked in marketing and sales management at Malibu Networks, Adaptive Broadband and Sciforma Corporation.
For more information about CounterPath Corporation, click here: http://www.counterpath.com/
© 2017 Stock News Now
Supported by Superior Web Solutions