Sangoma Announces Preliminary Revenue for Its Fiscal Fourth Quarter

Unaudited fourth Quarter revenues were an all-time record $4 million

MARKHAM, ONTARIO–(Marketwired – July 22, 2013) – Sangoma Technologies Corporation (TSX VENTURE:STC), a leading provider of hardware and software components that enable or enhance IP Communications Systems for both voice and data, today announced preliminary unaudited revenue for the fourth quarter of fiscal 2013 ended June 30, 2013.

Sales for the fourth quarter were a record $4.0 million, an increase of 25% from the immediately preceding third quarter of fiscal 2013 and an increase of 8% over the same quarter of fiscal 2012.

“I am very pleased that we have closed the year so strongly,” said Bill Wignall, President and CEO of Sangoma. “The entire team drove extremely hard to achieve this quarterly revenue milestone of $4 million, something Sangoma has sought for many years, so this is an excellent way to close off a challenging year. I remain encouraged with the uptake of our new products and I’m similarly pleased with the stronger sales of our legacy products this quarter as well. We know that Sangoma’s fiscal first quarter revenue is typically lower than the prior year’s fourth quarter, due to the seasonality of a weak summer period. I therefore expect our first quarter sales to be well below this $4 million level, but everyone at Sangoma is very focused on the objective of delivering growth above last year’s first quarter sales level.”

David Moore, Sangoma’s Chief Financial Officer noted that “many of our shareholders have been seeking information about our fourth quarter, and in fact we received questions about this on our last quarterly shareholder call. The release of our preliminary revenue results now, before the full audit cycle is completed, is a way for us to further accelerate disclosure and increase transparency. We will do this only for fourth quarters, when the release cycle is longer. Sangoma will of course announce its full annual financial results after completion of the annual audit, and the full release will be followed shortly thereafter by a conference call to discuss the results with investors.”

At the end of the fiscal fourth quarter, the company undertook a modest cost reduction to better align its costs with revenue. The board of directors continues to monitor Sangoma’s share price which it believes to be undervalued, which under IFRS, will necessitate consideration of possible balance sheet impairment issues during the annual audit cycle.

About Sangoma Technologies Corporation
Sangoma Technologies is a trusted leader in delivering value-based Communications as a Service (CaaS) solutions for businesses of all sizes. Sangoma’s cloud-based Services include Unified Communication (UCaaS) business communications, Meetings as a Service (MaaS), Communications Platform as a Service (CPaaS), Trunking as a Service (TaaS), Fax as a Service (FaaS), Device as a Service (DaaS), and Access Control as a Service (ACaaS), Managed Internet Access, Managed Security, Managed SD-WAN. In addition, Sangoma offers a complete line of communications Products, including premise-based UC systems, a full line of desk phones and headsets, and a complete connectivity suite (gateways/SBCs/telephony cards). Sangoma’s products and services are used worldwide in leading UC, PBX, IVR, contact centers, carrier networks, office productivity, and data communication applications. Sangoma is also the primary developer and sponsor of Asterisk and FreePBX, the world’s two most widely used open-source communication software projects.
Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements, including statements regarding the future success of our business, development strategies and future opportunities. Forward-looking statements include, but are not limited to, statements concerning estimates of future revenue, expected expenditures, expected future production and cash flows, and other statements which are not historical facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions indicate forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements are based on the opinions and estimates of management on the date that the statements are made and involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur or will differ materially from those expected. Although Sangoma believes that the expectations represented by such forward-looking statements are reasonable based on the current business environment, there can be no assurance that such expectations will prove to be correct as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in the management’s discussion and analysis include, but are not limited to changes in exchange rate between the Canadian Dollar and other currencies, the variability of sales between one reporting period and the next, changes in technology, changes in the business climate in one or more of the countries that Sangoma operates in, changes in the regulatory environment, the rate of adoption of the company’s products in new markets, the decline in the importance of the PSTN and new competitive pressures. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and Sangoma undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by law. Readers are directed to Sangoma’s filings on SEDAR with respect to Management’s Discussion and Analysis of Financial Results for the basis of Sangoma’s reconciliation of EBITDA to net income as calculated under IFRS.

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Sangoma Technologies Corporation

David Moore
Chief Financial Officer
(905) 474-1990 Ext. 4107
dsmoore@sangoma.com
www.sangoma.com

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