CounterPath Corporation (NASDAQ: CPAH) is a Vancouver-based communications company that was founded by Mark E. Bruk on October 28, 2002.
Per the company’s website, “CounterPath is a leading provider of Unified Communications (UC) software to enterprises, service providers and original equipment manufacturers. [CounterPath develops and markets] softphones for mobile phones, tablets, and PCs, software to enable provisioning, instant messaging, and call analytics.”
Recently, CPAH has seen some impressive growth — primarily due to increased demand for its products and services amidst the COVID-19 pandemic.
CounterPath is over 235% year-to-date and is up 269.28% over its 52-week low, as of this publication.
Honeywell Partners with CounterPath
A recent partnership between Honeywell International Inc. (NYSE: HON) and CounterPath is likely to encourage further growth. When the partnership was announced in January, CounterPath shares nearly doubled.
Honeywell selected CounterPath to create Smart Talk — a Unified Communications software solution that is designed to enhance communications in organizations in order to improve connectivity and boost productivity.
This software can be used to improve communications in a variety of workplaces including distribution centers, hospitals, stores, and others.
Smart Talk is expected to be available in the Honeywell Marketplace during late 2020.
CPAH 2020 Outlook
In light of the company’s recent growth, partnership with Honeywell, and increased demand due to COVID-19, CounterPath’s 2020 outlook remains rather positive.
In April, CPAH released a report reflecting on the impact of the COVID-19 pandemic on its business. The report also dictates the company’s outlook for its fourth quarter and the fiscal year that ended on April 30, 2020.
CounterPath expects its Q4 revenue to be between $3.6 million to $4.0 million and its revenue for the full fiscal year to be between $11.6 million to $12.0 million. This represents an increase of 8% to 12% compared to fiscal 2019.
David Karp, Chief Executive Officer of CounterPath, stated in the report, “We experienced a solid uptake across our business this quarter while seamlessly implementing our own successful work from home policy using Bria to facilitate customer demand.”
He continued, “While certainly some of the increase in revenue from the COVID-19 pandemic will be temporary, the immediate need we are seeing could turn into a lasting trend in the Telecommunications sector. According to Gartner, 74% of companies plan to permanently shift at least 5% of the workforce to work remotely post COVID-19. Aside from the benefit realized from the increase in demand from COVID-19, the Company continues to execute its business plan and is operationally stronger as we finish this fiscal year.”
Article By: Connor Beam