Shares of unified communications solutions provider CounterPath Corp. (NASDAQ:CPAH)(TSX:PATH) are on fire in Wednesday morning trading following the Vancouver-based company releasing solid results from the quarter ended October 31, the second quarter of CounterPath's fiscal year 2018.
CounterPath said revenue during the quarter rose 24% to $3.4 million from $2.8 million in the year prior quarter. That was up quarter-over-quarter by 10%.
Operating expenses were flat year-over-year at $3.5 million. A gain related to foreign exchange rate was also flat at roughly $200,000.
Gross margin picked up to 89% from 83% a year earlier, helping the company swing to a profit of about $200,000, or three cents per share, from a net loss of $600,000, or 12 cents per share in Q2 fiscal 2017.
Analysts were expecting the company to post a net loss of 13 cents per share for the quarter.
The quarter ended with CounterPath having $1.7 million in cash on hand.
Management noted strong growth in the Americas, as well as in EMEA (Europe, Middle East and Africa). The quarter was highlighted in part by a contract with a company described as "one of the world's largest communication service providers with tens of millions of users" and a distribution agreement with India-based peer TaraSpan.
Elsewhere, "a multi-billion-dollar international health care information technology company" inked a contract to begin utilizing the CounterPath SDK to add high-quality voice into their mobile app. Companies names are often withheld for competitive reasons.
After closing at $2.15 on Tuesday, shares have moved upward at a blistering pace on the earnings beat. Shares soared as high as $6.79, the highest since May 2015, before retreating some. About 90 minutes into Wednesday action, shares of CPAH are holding at $5.25 for a gain of 144.2% so far on the day.
