MARKHAM, ONTARIO, October 20, 2020 – Sangoma Technologies Corporation
(TSX VENTURE:STC), a trusted leader in delivering cloud-based Communications as a
Service (“CaaS”) solutions for companies of all sizes, today announced highlights of its
fourth quarter financial results and audited consolidated financial statements for the fiscal
year ended June 30, 2020.
Sangoma’s annual revenue was a record $131.4 million, 20% higher than in fiscal 2019,
with fourth quarter sales up by 16% year-over-year as well. EBITDA exceeded guidance
and was also a record at $21.6 million in fiscal 2020, up 75% from last year.
1 Operating Income and EBITDA are metrics used by the Company to monitor its performance and the definitions may be found in the accompanying MD&A posted today at www.sedar.com.
“I am extremely pleased with the way Sangoma performed this year, especially given how very challenging it has been for everyone during the COVID-19 crisis,” said Bill Wignall, President and CEO of Sangoma. “It is truly gratifying to see the resilience of the business during times like these, by delivering a year with 20% revenue growth and with EBITDA expanding 75% to over $20 million for the first time. While our fourth quarter revenue was slightly softer than our record third quarter, as expected due to the COVID-19 shutdowns, that is mostly in Product sales and its good to see Services revenue holding up, once again exceeding half our sales. Sangoma enters fiscal 2021 with a talented team, a robust business model, a broadening suite of cloud services, a very strong balance sheet, and a healthy acquisition pipeline. There is a lot to be proud of at Sangoma, and I’d particularly like to thank our staff for their strength and commitment during this really difficult year. And I’d also like to express our gratitude to our customers and investors for the ongoing trust they put in Sangoma every day.”
Gross profit was $84.9 million in fiscal 2020, producing gross margin at 65% of revenue
for the year, about 4 percentage points better than in 2019.
Operating expenses were $74.8 million in 2020, up 25% from fiscal 2019, reflecting the
additional expense consistent with the revenue growth.
EBITDA exceeded 16% of revenue this year and at $21.6 million for fiscal 2020, was up
from $12.3 million in the prior year, and above the top end of guidance.
Net income for the year ended June 30, 2020 was $3.9 million, more than double that of
Sangoma continues to maintain a strong balance sheet and finished the fiscal year with a
cash balance of $27.2 million, which was further supplemented by the $75.6 million
equity raise, net of costs, completed in July subsequent to year-end. Working capital
closed at $4.9 million as of June 30, and Adjusted Cash Flow from operations at $15.0
million for the year was comfortably above the $13.5 million generated in fiscal 2019.
Outlook for fiscal year 2021
While there continues to be uncertainty regarding the ongoing impact of COVID-19 on
business, Sangoma has taken multiple steps in an attempt to appropriately respond to that
impact. As we committed to in our Business Update of August 13, Sangoma is today
issuing guidance for its fiscal year 2021 that started on July 1, 2020. Revenue is
expected to be between $143 and $147 million, and EBITDA is expected to be between
$24 and $26 million for the year.
President and CEO, Bill Wignall, Executive Vice President Corporate Development,
John Tobia and CFO, David Moore will host a conference call on Tuesday October 20,
2020 at 5.30p.m. Eastern Standard Time to discuss the quarterly results. The dial-in
number for the call is 1-800-319-4610 (International 1-604-638-5340). Investors are
requested to dial in 5 to 10 minutes before the scheduled start time and ask to join the