CPTH - Sector: Services ---Industry: Business Services

[setravis]

Another beaten down stock.
Volume rising....Something may be cooking.
High 0.80  Low 0.49   Close 0.63  +18.87% today

[setravis]

A nice move today.
Could be a double bottom pattern forming.

[setravis]

Profile Get Profile for: 

Critical Path Inc.
2 Harrison Street
2nd Floor
San Francisco, CA 94105
Phone: 415-541-2500
Fax: 415-541-2300
Web Site: http://www.cp.net

DETAILS   
Index Membership: N/A
Sector: Services
Industry: Business Services
Full Time Employees: 355


BUSINESS SUMMARY   
Critical Path, Inc. delivers software and services for messaging and identity management. The company's messaging application products include a messaging server, a personal address book server, a calendar server, an Internet file server, and a notification server. These solutions, which are available both as licensed software and as hosted services, provide integrated access to a range of communication and collaboration applications from wireless devices, Web browsers, desktop customers, and voice systems. Critical Path's identity management products include a meta-directory server, a directory server, and password management. These products organize and manage user identity information, such as names, user ids, passwords, email addresses, telephone numbers, and group affiliations. Its customers include enterprises, wireless carriers and telecommunications providers, broadband companies and service providers, and government agencies and postal authorities. The company offers its products and services in North America, Brazil, Denmark, France, Germany, India, Ireland, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland, and the United Kingdom. The company has strategic partnerships with LogicaCMG, Comverse Technology, Inc., Capgemini, the Hewlett-Packard company, EMC Corporation, Epok, Inc., Orasi Software, Inc., VIA NET. WORKS, Inc., CTI2, SAIC, RSA Security, Inc., Entrust, Inc., and Computacenter. Critical Path was founded in 1997 and is headquartered in San Francisco, California.

[setravis]

• Q3 2005 Critical Path Earnings Release - After Market Close
CCBN (Mon 7:07am) 

• Critical Path Announces 2005 Third Quarter Results
Business Wire (Mon 4:05pm)

• CRITICAL PATH INC Files SEC form 8-K, Results of Operations, Financial Statements and Exhibits
EDGAR Online (Mon 4:11pm) 

• Critical Path Earnings Call scheduled for 4:15 pm ET today
CCBN (Mon 4:15pm) 

Press Release Source: Critical Path, Inc.

"I am pleased to announce Critical Path's best quarter ever," said Mark Ferrer, CEO and Chairman, Critical Path.


Critical Path Announces 2005 Third Quarter Results
Monday October 31, 4:05 pm ET 
Record Results -- Cash Flow Positive
Continued Improvement in GAAP Results
Profitable on Adjusted EBITDA Basis


SAN FRANCISCO--(BUSINESS WIRE)--Oct. 31, 2005--Critical Path, Inc. (Nasdaq:CPTH - News), a leading provider of messaging software and services, today announced unaudited financial results for the third quarter ended September 30, 2005.


"I am pleased to announce Critical Path's best quarter ever," said Mark Ferrer, CEO and Chairman, Critical Path. "Since beginning to execute on our consumer messaging strategy in July of 2004, we have been on a steady march to profitability. This quarter marks the start of a new chapter in Critical Path's future as we position the company to capitalize on the growing market for consumer messaging with exciting new offerings and a manageable cost structure."

Revenue

For the third quarter of 2005, revenues were $17.1 million, compared to $17.1 million in the second quarter of 2005 and $17.5 million in the third quarter of 2004.

GAAP Results

For the third quarter of 2005 the net loss, based on U.S. generally accepted accounting principles (GAAP), which excludes accretion of mandatorily redeemable preferred stock (a non-cash item related to our outstanding preferred stock), for the third quarter of 2005 was $1.0 million or $0.03 per share, compared to a net loss of $1.5 million or $0.05 per share in the second quarter of 2005 and a net loss of $26.2 million or $1.24 per share in the third quarter of 2004. For the third quarter of 2005, total cost of net revenues and operating expenses, based on GAAP, were $18.2 million, compared to $20.0 million in the second quarter of 2005 and a 34% decline from $27.7 million in the third quarter of 2004.

For the third quarter of 2005, net loss attributable to common shareholders, based on GAAP, which includes accretion of mandatorily redeemable preferred stock (a non-cash item related to our outstanding preferred stock), was $4.5 million or $0.13 per share, compared to a net loss of $8.1 million or $0.27 per share in the second quarter of 2005 and a net loss of $30.4 million or $1.43 per share in the third quarter of 2004.

Adjusted EBITDA Results

For the third quarter of 2005, net income, on an adjusted EBITDA basis, was $0.3 million, or $0.01 per share, compared to a loss of $0.7 million or $0.02 per share in the second quarter of 2005 and a loss of $4.9 million or $0.23 per share in the third quarter of 2004. For the third quarter of 2005, total cost of net revenues and operating expenses on an adjusted EBITDA basis was $16.7 million, compared to $17.8 million for the second quarter of 2005 and $22.4 million for the third quarter of 2004. Adjusted EBITDA results, a non-GAAP metric we use to measure the performance of our business, is earnings before interest income (expense), provision for income taxes, depreciation and amortization adjusted to exclude other items, such as other income (expense), restructuring and other expenses, stock-based expenses, loss on extinguishment of debt and accretion on mandatorily redeemable preferred stock.

"Adjusted EBITDA results are a good measure of the company's operating performance, and on this basis, our operations were profitable in Q3," said Jim Clark, CFO, Critical Path. "We have achieved these results through our significant improvement in gross margins, continuous cost containment, stable revenues and our focus on consumer messaging. Results have been in line with guidance for the fifth quarter in a row, and we look forward to maintaining this credible track record."

As of September 30, 2005, the Company's cash and cash equivalents totaled $20.5 million, compared to $16.9 million at June 30, 2005 -- a $3.6 million improvement driven from operations.

"Of course, cash flow is one of the cleanest indicators of performance, and we are particularly proud to have achieved an increase in our cash position during the quarter," said Jim Clark.

Third Quarter 2005 Highlights

Profitability Achieved: Third quarter 2005 results turned the Company profitable on an adjusted EBITDA basis.
Cash Flow Positive: Net cash increased $3.6 million sequentially, driven from operations.
Memova(TM) Momentum: Revenue from licensed software, including the Company's Memova(TM) consumer messaging solutions, continues to grow. Q3 was the second quarter in a row, and the third out the last four quarters, that licensed revenue increased sequentially. In the quarter, Indosat launched Memova Mobile to the Indonesian mass market, and Critical Path signed a new Memova Mobile deal with a European service provider.
Guidance

The Company currently expects revenue for the fourth quarter of 2005 to be in the range of $16.0 to $18.0 million. This guidance is on an adjusted EBITDA (non-GAAP) basis as described above. If the Company is successful in delivering the middle to high end of its revenue range, it expects total gross margins in the fourth quarter to be in the range of 52% to 57%. Additionally, the Company expects its operating expenses to be in the range of $9.0 to $9.5 million in the fourth quarter of 2005.

The Company currently expects cash balances at December 31, 2005 to decline slightly from balances at September 30, 2005 primarily due to European corporate income tax payments in the fourth quarter.

Regulation G

Due to the forward-looking nature of the projections of gross margins and operating expenses on an adjusted EBITDA basis given directly above, information to reconcile such non-GAAP financial measures to the most directly comparable GAAP measures is not available without unreasonable effort. The Company believes that the information necessary to reconcile the non-GAAP financial measures to GAAP, such as future restructuring costs, if any, other income (expense), interest income and expense, stock-based expenses and accretion on mandatorily redeemable preferred stock, are not reasonably estimable or predictable.

The Company uses both GAAP and non-GAAP metrics to measure its financial results. The non-GAAP metrics used are: income (loss) on an adjusted EBITDA basis, both cost of revenues and operating expenses on an adjusted EBITDA basis and Memova Anti-Abuse sales bookings. The most directly comparable GAAP measures are the net loss attributable to common shareholders, cost of net revenues and operating expenses and net revenues, respectively. The adjusted EBITDA results exclude interest income (expense), provision for income taxes, depreciation and amortization as well as other items such as other income (expense), net, restructuring and other expenses, stock-based expenses, loss on extinguishment of debt and accretion on mandatorily redeemable preferred stock. Memova Anti-Abuse sales bookings are the billable value of contracts for such products closed in the period. There is no difference between adjusted EBITDA and GAAP revenues. Management believes that, in addition to GAAP metrics, these non-GAAP metrics assist the Company in measuring its cash-based performance. In addition, management believes these non-GAAP metrics are useful to investors because they remove unusual and nonrecurring charges that occur in the affected period and provide a basis for measuring the Company's financial condition against other quarters. Since the Company has historically reported non-GAAP results to the investment community, management also believes the inclusion of non-GAAP measures provides consistency in its financial reporting. However, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. The calculations for these non-GAAP metrics are in the alternative measurement reconciliation table below.

Conference Call

Critical Path will host a conference call on Monday, October 31, 2005, at 4:15 p.m. Eastern Time to discuss the financial results for the third quarter ended September 30, 2005. The conference call is scheduled to last up to one hour. Those who would like to participate should dial +1 877-231-3543 (within the U.S. and Canada) or +1 706-634-1329 (from outside the U.S. and Canada) five to ten minutes prior to the scheduled start time (no passcode is needed). In addition, the conference call and a subsequent replay will be available via Web cast from the Company's Web site, http://www.criticalpath.net/en/31/webcasts/. A replay of the conference call will also be available by telephone for fourteen days following the call. To access the telephone replay, please dial +1 800-642-1687 (within the U.S. and Canada) or +1 706-645-9291 (from outside the U.S. and Canada) and use conference ID 1997111. The Web cast and earnings release will be available on the Company's Web site for twelve months following the conference call.

About Critical Path, Inc.

Critical Path's Memova(TM)solutions provide a new and improved email experience for millions of consumers worldwide, helping mobile operators, broadband and fixed-line service providers unlock the potential of email in the mass market. Memova(TM) Mobile gives consumers instant, on-the-go access to the messages that matter most. Featuring industry-leading anti-spam and anti-virus technology, Memova(TM) Anti-Abuse protects consumers against viruses and spam. Memova(TM) Messaging provides consumers with a rich email experience, enabling service providers to develop customized offerings for high-speed subscribers. Headquartered in San Francisco with offices around the globe, Critical Path's messaging solutions are deployed by more than 200 service providers throughout the world. More information is available at www.criticalpath.net.


News Link:   http://finance.yahoo.com/q/h?s=CPTH

[setravis]

Moving on up......
I would think this would catch fire.

[setravis]

I think I forgot to post this good news..........



Press Release Source: Critical Path, Inc.


Critical Path Quoted on OTC Securities Market
Thursday November 17, 6:26 pm ET 
Record Financial Results Reported for Last Quarter
Consumer Messaging Strategy Continues Momentum


SAN FRANCISCO--(BUSINESS WIRE)--Nov. 17, 2005--Critical Path (OTC:CPTH - News), a leading provider of messaging software and services, today announced that its common stock is now being quoted on the Over-the-Counter (OTC) securities market under the ticker symbol CPTH.


"Critical Path's financial results are stronger than ever before, and therefore, as we commence trading on the OTC, we expect to maintain and grow the confidence of our investors," said Mark Ferrer, CEO and Chairman, Critical Path. "Not only have we improved our financials, but we have introduced exciting new solutions that we believe position us to take advantage of a rapidly growing consumer messaging market."

On October 31, Critical Path reported record results for the fiscal third quarter of 2005, including positive cash flow and continued improvement in GAAP results. This comes on the heels of five consecutive quarters of gross margin improvement and significant operating expense reduction over the course of the last year. In addition, the company reported its first revenues from its new Memova(TM) Mobile solution last quarter.

The transition to the OTC follows the company's recently reported delisting from the Nasdaq National Market. While the company's common stock is currently being quoted on the OTC, the company is also working with its market makers to enable the quotation of the stock on the OTC Bulletin Board (OTC BB). The OTC is a regulated, but decentralized, market of securities traded via an electronic quotation system that serves more than 3,000 companies. OTC securities include national, regional, and foreign equity issues.

About Critical Path, Inc.

Critical Path's Memova(TM) solutions provide a new and improved email experience for millions of consumers worldwide, helping mobile operators, broadband and fixed-line service providers unlock the potential of email in the mass market. Memova(TM) Mobile gives consumers instant, on-the-go access to the messages that matter most. Featuring industry-leading anti-spam and anti-virus technology, Memova(TM) Anti-Abuse protects consumers against viruses and spam. Memova(TM) Messaging provides consumers with a rich email experience, enabling service providers to develop customized offerings for high-speed subscribers. Headquartered in San Francisco with offices around the globe, Critical Path's messaging solutions are deployed by more than 200 service providers throughout the world. More information is available at www.criticalpath.net.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements by the company and its executives regarding the performance of our product and service offerings, our expected revenue results, gross margins and operating expenses for future periods, industry trends, the ability of our products and services to meet the business needs of our customers and compete favorably in the marketplace, management of spending levels, the market for products and services like ours, our ability to focus on business strategy and capitalize on growth opportunities, the listing of the company's common stock on the OTC Bulletin Board, the anticipated impact of the listing of the company's common stock on the OTC on the company's financial results and expectations for future performance and the performance of our senior management in achieving strategic goals. The words and expressions "look forward to," "will," "expect," "plan," "believe," "seek," "strive for," "anticipate," "hope," "estimate" and similar expressions are intended to identify the Company's forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, our evolving business strategy and the emerging and changing nature of the market for our products and services, our ability to deliver on our sales objectives, the ability of our technology and our competitors' technologies to address customer demands, changes in economic and market conditions, and software and service design defects. These and other risks and uncertainties are described in more detail in the Company's filings with the U.S. Securities and Exchange Commission (www.sec.gov) made from time to time including Critical Path's Annual Report on Form 10-K and Form 10-K/A for the fiscal year ended December 31, 2004, its Quarterly Reports on Form 10Q for the three months ended March 31, June 30 and September 30, 2005, its Current Reports on Form 8-K, as may be amended from time to time, and all subsequent filings with the United States Securities and Exchange Commission (www.sec.gov). The Company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.

Note to Editors: Critical Path, the Critical Path logo, Memova and the Memova logo are the trademarks of Critical Path, Inc. All other trademarks are the property of their respective holders.



Contact:
Critical Path, Inc.
Michelle Weber, 415-541-2575 (Reporters and Editors)
[email protected]
Investor Relations, 415-541-2619 (Investors)
[email protected]

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Source: Critical Path, Inc.

[stock-kitty]

She is moving for the last few days... somethings up