Counterpath Corporation (CPAH) saw its loss widen to $0.68 million, or $0.14 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $0.25 million, or $0.05 a share. On the other hand, adjusted net loss for the quarter narrowed to $0.37 million, or $0.08 a share from a loss of $0.41 million or $0.09 a share, a year ago.
Revenue during the quarter dropped 3.73 percent to $2.56 million from $2.65 million in the previous year period. Gross margin for the quarter expanded 337 basis points over the previous year period to 85.88 percent. Operating margin for the quarter stood at negative 20.32 percent as compared to a negative 22.33 percent for the previous year period.
Operating loss for the quarter was $0.52 million, compared with an operating loss of $0.59 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $0.37 million compared to operating loss of $0.41 million in prior year period.
"During the last quarter, we grew both our software revenue and our subscription, support and maintenance revenue" said Donovan Jones, president and chief executive officer. "This growth in revenue was offset by a decline in professional services revenue as we refocused headcount from lower margin customization of software for contract customers to development of scalable cloud based Bria X. We also launched Bria X, a Software-as-a Service (SaaS) solution that enables SMB’s and enterprises to communicate and collaborate in a secure and productive environment. The initial users of Bria X have the opportunity to try the solution on a 30-day trial basis before converting to a paid for subscription. While it’s relatively early in the process, we are seeing conversion from free to paid and our content marketing program and referrals are filling the top end of the funnel. In addition, we have been developing features further differentiating our offering in the high value communication and collaboration enterprise space".
Working capital declines
Counterpath Corporation has witnessed a decline in the working capital over the last year. It stood at $1.45 million as at Jan. 31, 2017, down 21.15 percent or $0.39 million from $1.85 million on Jan. 31, 2016. Current ratio was at 1.36 as on Jan. 31, 2017, down from 1.46 on Jan. 31, 2016.
Days sales outstanding were almost stable at 111 days for the quarter, when compared with the last year period.
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