SAN FRANCISCO-Messaging company Critical Path Inc. announced it expects to report earnings below expectations when it releases its quarterly revenues later this month. The company expects to report first quarter revenues of $18 million and cash operating expenses of $26 million.
“Revenue was lower than anticipated in the first quarter due to delayed purchases by several customers because of current economic conditions and an uncertain political environment. We expect the majority of those deals to close early in the second quarter,” said William McGlashan, the company’s chairman and chief executive officer. “We remain committed to our goals of achieving EBITDA break-even by the end of the second quarter and becoming EBITDA profitable in the second half of the year.”
The company’s stock was down slightly after the news to about 80 cents per share.
The company sought to hearten investors with the release of its new hosted messaging service, run jointly with Hewlett-Packard Co. Critical Path said T-Mobile International will use the messaging service in its T-Zones T-email wireless messaging service, scheduled for a June launch in select European countries.
“The advanced mobility features of the new service provided by Critical Path will provide a significant enhancement to our mobile data solutions as an integral part of the new T-Zones offering to our customers,” said Klaus Weiss, head of product management for T-Mobile International. “Outsourcing our T-email solution to Critical path will also give us a significant time-to-market advantage as we seek to offer the next generation T-Zones services to our customers. With its sophisticated built-in billing, provisioning and reporting capabilities, Critical Path’s service offers the total solution.”
