Q. As one can see in your 10-K the percentage of revenues generated in the US declined from 29,7% in 2005 to 22,6% in 2006. Assuming that the number for 2006 is also valid for the first half of 2007: are there any specific reasons why Critical Path was not able over the past quarters to gain traction in the US- Business? Is any of the big carriers like AT&T working with Critical Path or has the intention do so ? Are there any competitors of Critical Path that are already working with US Carriers?
A. The decrease in the proportion of United States (U.S.) revenues from 2005 to 2006 was primarily a result of the sale of the Hosted Assets (including the Hosted customers) in January 2006 as the majority of the customers were based in the U.S. Most recently, while the proportion of revenues generated in the U.S. has fluctuated, quarterly revenues in the U.S. have remained fairly consistent at approximately $2.5 to $2.6 million per quarter over the last 6 quarters ended June 30, 2007. While we are pleased that revenues generated in the U.S. have remained relatively stable, we are focused on growing our base of customers in the U.S. and reselling new solutions to our existing customers in an effort to increase our U.S. revenues.
Q. Do you expect to be cash flow positive on a quarterly basis in 2007?
A. As a matter of Company practice, we do not provide such forward looking guidance. However, if you refer to our most recently filed Form 10-Q for the three months ended June 30, 2007, as filed with the U.S. Securities and Exchange Commission filings (SEC), you will find information with respect to the Company's liquidity and capital resources.
Q. Do you expect significant revenue growth in the second half 2007 or will revenue be roughly the same like in the first half of 2007?
A. As a matter of Company practice, we do not provide such forward - looking guidance.
Q. Are there any negotiations planned with the preferred share holders to "resolve" the capital structure? If not, is there a time frame for resolving this issue?
A. As a matter of Company practice, we do not comment on any planned or current discussions with our preferred or common shareholders, nor our note holders. Please note that the redemption date of the Company's preferred stock is July 9, 2008 and the most current information with respect to the Company's outstanding preferred stock can be found in its Form 10-Q for the three months ended June 30, 2007 as filed with the U.S. SEC.
You can find our most recently filed Form 10-Q along with our other SEC filings by clicking on the following link: http://www.criticalpath.net/en/34/sec/.
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