CounterPath, Corp. (NASDAQ: CPAH) is flying early on in the market this morning, and for good reason. The company announced that it has entered into a new revenue-generating agreement. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The newly minted agreement;
- what we’re seeing from CPAH stock as a result; and
- what we’ll be watching for ahead.
CPAH Heads Up On New Agreement
As mentioned above, CounterPath is having an incredibly strong start to the trading session this morning after providing an update with regard to a new agreement. In a press release issued early this morning, the company announced that it has signed an agreement with a leading contract center solution provider. The agreement surrounds the deployment of the company’s Hosted Stretto Platform™ for provisioning, voice quality monitoring, and remote support. CPAH said that the deployment is expected to grow over the comping months as usage expands to cover the company’s install base of Bria Unified Communications clients.
According to the terms of the license agreement, the existing contact center customer will use cloud-based Stretto Platform services to easily provision and manage its current deployment of Bria smartphones. The service will also be used to leverage the customer’s in-depth reports and analytics to ensure the best user experience possible. CPAH said that it was chosen by the customer to solve the management issues surrounding the success of their contact center deployment. In a statement, Todd Carothers, EVP of sales and marketing at CPAH, had the following to offer:
We are pleased to continue delivering software and services to this customer with its tens of thousands of users leveraging CounterPath’s Bria Softphone with their contact center offering and where user management is a challenge… Cloud-based Stretto Platform Services allows companies to leverage best-in-class hosted user management to provision users and amass high-level corelated data to drive better user experiences. This is a very deliberate trend we are seeing, and we expect to see dozens of deployments where customers who have deployed high numbers of Bria softphones leveraging CounterPath’s hosted subscription services to drive the next level of performance and user management in the coming months.
What We’re Seeing From the Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of CounterPath, the news proved to be overwhelmingly positive. After all, the new agreement will likely prove to be a strong revenue driver for the company. So, it’s no surprise to see that investors are excitedly sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:07), CPAH is trading at $4.20 per share after a gain of $1.45 per share or 52.73% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CPAH. In particular, we’re interested in following the performance of the above-mentioned agreement to see what kind of revenue bump it gives the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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