<<Robertson Stephens Senior eCommerce Infrastructure Services Analyst Richard Juarez today raised his rating on Critical Path (NASDAQ:CPTH - news) to a Strong Buy rating from a Buy. Critical Path delivers a complete, end-to-end, state-of-the-art outsourced messaging solution to Internet service providers, Web hosting companies, Web portals and most importantly enterprises.
``We are raising our rating on Critical Path to reflect the company's solid fourth quarter 1999 results and increased business momentum,' said Juarez. ``Revenues of $8.2 million roared past our $6.5 million estimate, showing 66 percent sequential revenue growth. The company's reported revenue per mailbox/month of $0.31 significantly beat our $0.23 estimate. We are particularly impressed by Critical Path's reported 11.1 million mailboxes, and by the $0.01 increase in revenues per mailbox over last quarter.'
``We believe that these results demonstrate the following: 1) the strength and scalability of the company's core messaging platform 2) The growing demand from enterprises for outsourced messaging solutions 3) Global growth in messaging requirements 4) The emerging demand for wireless solutions,' said Juarez.
``In addition, the company announced that it closed its accretive acquisition of ISOCOR,' said Juarez. ``This acquisition provides the company with powerful meta directory technology, instant European presence and 44 million new mailboxes, bringing its total mailboxes to over 55 million.' |
