SAN FRANCISCO (April 15, 2003) — Critical Path, Inc. (Nasdaq: CPTH), a global leader in digital communications software and services, today announced that it expects to report first quarter 2003 revenue of approximately $18 million and cash operating expenses of approximately $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," commented William McGlashan, Jr., 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."
During the quarter, Critical Path delivered software solutions to UBS AG, Telia Group, SEAT, Wind Telecomunicazioni and a major US-based conglomerate, among other firms. On March 31, it also launched its next-generation hosted messaging platform with HP, its strategic partner.
Critical Path will report results for the first quarter 2003 on April 29, 2003. Those who would like to participate in the conference call should dial 877/231-3543 or 706/634-1329 (international) prior to 4:50 PM ET on the day of the call. The conference call and its replay will also be Web cast and are accessible from the Company's Web site, www.criticalpath.net. A telephone replay of the conference call will be available for seven days following the call. To access the replay, please dial (800) 642-1687 or (706) 645-9291 (international), passcode 9811034.
About Critical Path, Inc.
Critical Path, Inc. (Nasdaq: CPTH) is a global leader in digital communications software and services. The company provides messaging solutions — from wireless, secure and unified messaging to basic email and personal information management — as well as identity management solutions that simplify user profile management and strengthen information security. The standards-based Critical Path Communications Platform, built to perform reliably at the scale of public networks, delivers the industry's lowest total cost of ownership for messaging solutions and lays a solid foundation for next-generation communications services. Solutions are available on a hosted or licensed basis. Critical Path's customers include more than 700 enterprises, 190 carriers and service providers, eight national postal authorities and 35 government agencies. Critical Path is headquartered in San Francisco. More information can be found at www.criticalpath.net
Forward-Looking Statements
This press release contains forward-looking statements, including the Company's statements regarding, its finance, business and operations including anticipated or projected revenue, expenses and operational growth, markets, strategic partners and potential customers for Critical Path products and services. The words "anticipate," "expect," "intend," "plan," "believe," "seek," and "estimate" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Factors that might cause future results to differ materially from those projected in the forward-looking statements include, but are not limited to, difficulties of forecasting future results due to our limited operating history, failure to meet sales and revenue objectives, forecasts and earnings guidance, general economic conditions in markets in which the Company does business, worldwide slow down in technology spending by our customers and potential customers, failure to negotiate favorable or timely deals with strategic partners for the distribution of our products and services, the relative success of strategic partnerships and global sales alliances, our evolving business strategies and the emerging nature of the market for our products and services, turnover within and integration of senior management, board of directors members and other key personnel, difficulties in delivering and marketing our product and service offerings, protection of our intellectual property, failure to successfully expand our sales and marketing activities, potential difficulties associated with restructuring, strategic relationships, investments and uncollected bills, , volatility in the market for stock and risks associated with potential delisting actions by the market on which we are listed, risks associated with our international operations, foreign currency fluctuations, unplanned system interruptions and capacity constraints, software defects, and those discussed elsewhere in this announcement and the attached statements. These and other risks and uncertainties are described in more detail in Critical Path's Annual Report on Form 10-K for the fiscal year ended December 31, 2002, as may be amended from time to time, and all subsequent filings with the Securities and Exchange Commission (www.sec.gov)
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Note to Editors: Critical Path and the Critical Path logo are the trademarks of Critical Path, Inc.
Contact Information:
For Reporters:
Critical Path, Inc.
Marcie Powers
415.541.2662
marcie.powers@criticalpath.net
For Financial Analysts:
Critical Path, Inc.
Mike Bishop
415.541.2619
mike.bishop@criticalpath.net
Ernst van der Ploeg
Regional Sales Director
for Critical Path Benelux
+31 (0) 6 512 77060 phone
+31 (0) 6 105 48013 fax
A Global Leader in Digital Communications Software and Services