Counterpath disappoints - CPAH, UPIP & ESL

Northern, WI 03/15/2013 (usmarketsdaily) - Counterpath, Corp. (NASDAQ:CPAH) reported third quarter fiscal 2013 earnings that are below expectations of the street. The report, released March 14, show quarterly revenues of around $3 million, which are around 6% lower than the same results 12 months prior.

CounterPath Corp. is a Canadian software development company in the business of developing mobile application and gateway server software, as well as the design, development and sales of personal computers. The company has a market capitalization of around $96 million and is trading at around $2 per share. The stock price is down from its 52 week high of around $4 per share.

The fortunes of CounterPath Corp. are opposite another Canadian software company, Enghouse Systems Limited (TSE:ESL). This Markham, Ontario enterprise software company is trading at around $20 per share. The company has entered into several acquisitions designed to position itself well in the market place.

Enghouse Systems Limited reported a net profit margin of around 21% for its fourth quarter ending in 2012. The company’s liquidity measure of 1.71 gives it some good coverage as it continues its acquisition activities. The company also has a debt to equity and debt ratio for that is 52% and 34% respectively, based on its last reporting quarter numbers.

Another technology and intellectual property company, Unwired Planet Inc (NASDAQ:UPIP) appears to be capturing the attention of Wall Street analysts. This company’s fundamentals are not as good as those of Enghouse Systems Limited, but the company holds 200 United States and foreign patents, with another 75 pending, for proprietary mobile communications applications that may change the way we use smart phone and other mobile communication technology.

Unwired Planet Inc is a Redwood City, California based company with a market capitalization of around $200 million. The stock price of Unwired Planet Inc is around $2 per share, and is down from its 52 week high of around $3 per share. The company is liquid, with a quick ratio of around 3. The debt to equity ratio of the company is 45% and Unwired Planet Inc has a debt ratio of 31%. Unwired Planet Inc is in a much stronger position, fundamentally, than CounterPath Corp.

Management for CounterPath Corp. needs to take a look at the way in which it conducts business and begin to make necessary changes to address its lingering disappointment to analysts.

Shares of Counterpath, Corp. (NASDAQ:CPAH) is at $2.26.

Shares of Unwired Planet Inc (NASDAQ:UPIP) were up by 5.88% and currently trading at $2.34

Shares of Enghouse Systems Limited (TSE:ESL) were up by 0.05% and currently trading at CAD19.95

About the Author

Bob Coper graduated from the University of Dayton with majors in political science and journalism. Bob is a Social and tax policy reporter. Bob Coper has also written numerous feature reports and contributed foreign policy pieces. Bob Coper has covered nine political conventions, Congress, the White House, the Pentagon, the FCC, K Street, Hollywood, Silicon Valley, the State House.

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