CounterPath Announces Restructuring



    
               Expects to reduce costs and operating expenses
                           by $4 million per year
    

    VANCOUVER, Oct. 16 /CNW/ - CounterPath Corporation (TSX-V: CCV; OTCBB:
CPAH), a leading provider of desktop and mobile VoIP software products and
solutions, today announced a restructuring as part of an overall initiative to
reduce costs. As a result of the restructuring, the company expects to reduce
costs and operating expenses by approximately $4 million per year. The
restructuring includes a reduction in 32% of headcount (approximately
45 employees and contractors) as well as other operational changes that are
being implemented to increase the overall efficiency of the company's
operations.
    CounterPath President and CEO Donovan Jones said, "This restructuring,
while difficult, is primarily the result of integrating our acquisitions. We
are also being prudent and managing our cash resources in light of the current
business climate. We made three acquisitions over the past year to expand our
solution portfolio beyond our award winning desktop softphone. We added
enterprise capabilities in both fixed and mobile communications, as well as
adding a mobile operator's solution to turn the Internet into a global open
roaming network. Our business prospects are solid and our premise of unifying
desktop and mobile communications is beginning to take hold with customers as
our software decreases costs and increases productivity for users."
    "The changes we are announcing today will ensure that CounterPath will
streamline operating activities in line with profitability expectations and
continue delivering on our strategy," added Jones.
    The company expects total annualized cost and operating expense savings
to be approximately $5.5 million as a result of headcount reductions effected
since August 1, 2008, including the $4 million as a result of the current
restructuring. The majority of the headcount reductions are in the research
and development area as a number of the company's acquired solutions have been
integrated and are ready for market. The company expects severance costs as a
result of headcount reductions in the current second fiscal quarter to be
approximately $1.1 million, initially offsetting some of the expected savings
from the restructuring's implementation.

    About CounterPath

    CounterPath Corporation is a leading provider of innovative desktop and
mobile VoIP software products and solutions. The company's product suite
includes SIP-based softphones, server applications and Fixed Mobile
Convergence (FMC) solutions that enable service providers, enterprises and
Original Equipment Manufacturers (OEM) to cost-effectively integrate voice,
video, presence and Instant Messaging (IM) applications into their VoIP
offerings and extend functionality across both fixed and mobile networks.
    CounterPath's customers include some of the world's largest
telecommunications service providers and network equipment providers including
AT&T, Verizon, BT (British Telecommunications PLC), Deutsche Telekom, Cisco
Systems, Mitel and Nortel.
    Visit www.counterpath.com.

    Forward-Looking Statements

    This news release contains "forward-looking statements". Statements in
this news release, which are not purely historical, are forward-looking
statements and include any statements regarding beliefs, plans, expectations
or intentions regarding the future.
    It is important to note that actual outcomes and the company's actual
results could differ materially from those in such forward-looking statements.
Actual results could differ from those projected in any forward-looking
statements due to numerous factors. Such factors include, among others: (1)
the impact of the restructuring on the business of CounterPath, (2) the
failure to realize anticipated savings resulting from the restructuring or
other unanticipated costs of the restructuring, (3) the company's ability to
remain competitive as other parties develop and release competitive products,
(4) the company's ability to retain the employees necessary to continue
research and development of current and new products, (5) the success by the
company of the sales of its current and new products, (6) the impact of
competitive products on the sales of the company's products, (7) the impact of
technology changes on the company's products and on the VoIP industry, (8) the
compatibility of the company's products with new computer operating systems,
(9) the rate of adoption by service providers and the general public of VoIP
as a replacement for regular and cellular phone service, (10) general economic
conditions as they affect CounterPath and its prospective customers, (11) the
ability of the company to control costs operating, general administrative and
other expenses, and (12) insufficient investor interest in the company's
securities which may impact on the company's ability to raise additional
financing as required. Readers should also refer to the risk disclosures
outlined in the company's quarterly reports on Form 10-QSB and Form 10-Q,
annual reports on Form 10-KSB and the company's other disclosure documents
filed from time-to-time with the Securities and Exchange Commission.

    
    Disclaimer: The TSX Venture Exchange does not accept responsibility for
    the adequacy or accuracy of this release.
    




For further information:

For further information: David Karp, Chief Financial Officer,
CounterPath Corporation, (604) 320-3344 ext 1114, ir@counterpath.com

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CounterPath Corporation

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