Business
CounterPath Announces Restructuring
Expects to reduce costs and operating expenses by $4 million per year VANCOUVER, Oct. 16 /CNW/ - ...
About this update from Newpath Resources Inc
[{"type":"text","content":"\n\n\n\n Expects to reduce costs and operating expenses\n by $4 million per year\n\n\nVANCOUVER, Oct. 16 /CNW/ - CounterPath Corporation (TSX-V: CCV; OTCBB:\nCPAH), a leading provider of desktop and mobile VoIP software products and\nsolutions, today announced a restructuring as part of an overall initiative to\nreduce costs. As a result of the restructuring, the company expects to reduce\ncosts and operating expenses by approximately $4 million per year. The\nrestructuring includes a reduction in 32% of headcount (approximately\n45 employees and contractors) as well as other operational changes that are\nbeing implemented to increase the overall efficiency of the company's\noperations.\n\n\nCounterPath President and CEO Donovan Jones said, "This restructuring,\nwhile difficult, is primarily the result of integrating our acquisitions. We\nare also being prudent and managing our cash resources in light of the current\nbusiness climate. We made three acquisitions over the past year to expand our\nsolution portfolio beyond our award winning desktop softphone. We added\nenterprise capabilities in both fixed and mobile communications, as well as\nadding a mobile operator's solution to turn the Internet into a global open\nroaming network. Our business prospects are solid and our premise of unifying\ndesktop and mobile communications is beginning to take hold with customers as\nour software decreases costs and increases productivity for users."\n\n\n"The changes we are announcing today will ensure that CounterPath will\nstreamline operating activities in line with profitability expectations and\ncontinue delivering on our strategy," added Jones.\n\n\nThe company expects total annualized cost and operating expense savings\nto be approximately $5.5 million as a result of headcount reductions effected\nsince August 1, 2008, including the $4 million as a result of the current\nrestructuring. The majority of the headcount reductions are in the research\nand development area as a number of the company's acquired solutions have been\nintegrated and are ready for market. The company expects severance costs as a\nresult of headcount reductions in the current second fiscal quarter to be\napproximately $1.1 million, initially offsetting some of the expected savings\nfrom the restructuring's implementation.\n\n\nAbout CounterP...