MARKHAM, ONTARIO–(Marketwire – Oct. 10, 2012) – 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 highlights of its audited consolidated financial statements under IFRS for the fourth quarter and full year of fiscal 2012, ended June 30, 2012 and the adoption of a shareholder rights plan.
Sales for the fourth quarter of fiscal 2012 were $3.71 million, 14% higher than the same period last year and an all-time record for quarterly revenue at Sangoma. Annual revenue for fiscal 2012 was $13.76 million, up 16% versus last year, and also an all-time record for Sangoma. For the second year in a row, sales have grown consistently from the first quarter through the fourth quarter.
“I am very pleased to have closed fiscal 2012 with such a strong revenue quarter and year, particularly against the backdrop of sales downturns amongst many of our competitors,” said Bill Wignall President and CEO of Sangoma. “We see our strategy continuing to bear fruit. The operational re-build is complete, we dramatically expanded our product portfolio with 10 new products using more focused R&D, we built a global sales and marketing presence with increased investment, we have won early successes in some key new carrier customers, and we completed the acquisition of the assets of VegaStream. It is most gratifying to see these strategic decisions reflected in growing sales during such turbulent times. I could not be more proud of our talented team of people and partners who work so hard every day, and I thank our customers for putting their faith in Sangoma.”
| Q4 FY2012 |
Q4 FY2011 |
Change | FY2012 | FY2011 | Change | ||||||||||
| Sales | $ | 3.71 m | $ | 3.25 m | 14 | % | $ | 13.76 m | $ | 11.86 m | 16 | % | |||
| Gross profit | $ | 2.36 m | $ | 2.44 m | (3 | %) | $ | 9.47 m | $ | 8.84 m | 7 | % | |||
| Operating Expense | $ | 2.40 m | $ | 2.09 m | 15 | % | $ | 8.41 m | $ | 7.61 m | 11 | % | |||
| Operating Income(1) | -$0.04 m | $ | 0.36 m | (111 | %) | $ | 1.05 m | $ | 1.23 m | (15 | %) | ||||
| Net income | -$0.31 m | -$4.39 m | $ | 0.41 m | -$3.76 m | ||||||||||
| Net earnings per share (fully diluted) | $ | (0.011 | ) | $ | (0.145 | ) | $ | 0.014 | $ | (0.124 | ) | ||||
| EBITDA(1) | $ | 0.09 m | $ | 0.49 m | (82 | %) | $ | 1.58 m | $ | 1.77 m | (11 | %) | |||
| Following the transition to IFRS effective July 1, 2010, all fiscal 2011 numbers have been restated to reflect IFRS accounting conventions and will not match 2011 numbers previously reported under Canadian GAAP, as explained in the Company’s Audited Financial Statements. (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. |
Gross profit was $2.36 million for the quarter and $9.47 million for the year, or 64% and 69% of revenue respectively. Gross margin as a percent of revenue is lower than prior periods due to Sangoma’s expanded product portfolio, such that sales of this new product mix involve lower margins on some products than its traditional board business.
Operating expense for the fourth quarter was $2.40 million and for the year was $8.41 million before one-time business acquisition costs. Annual operating expenses were 11% higher than the $7.61 million incurred in the prior fiscal year, reflecting the increased investment in product development and sales and marketing.
Operating Income was $1.05 million for the fiscal year, or about 8% of annual revenue with a slight loss of $0.04m being incurred in the fourth quarter.
“Delivering increased revenue, profitably, while maintaining a healthy balance sheet was a key objective for Sangoma in fiscal 2012 and 16% growth is really great in this environment,” continued Wignall. “While our existing distribution partners continue to perform well, we are also seeking bigger orders with larger customers as we penetrate new geographic markets and customer segments.”
Net Income for the year ending June 30, 2012 was $0.41 million ($0.014 per share fully diluted), compared to a net loss of $3.76 million (-$0.124 per share fully diluted) for the year ended June 30, 2011 which was impacted by two one-time non-cash charges.
Sangoma finished the year with a solid cash balance of $5.02 million and had working capital of $11.86 million on June 30, 2012 as compared to $12.36 million on June 30, 2011.
The Board of Directors of Sangoma Technologies approved the adoption of a Shareholder Rights Plan and set the Record Time in respect of the Shareholders Rights Plan for the close of business on October 10, 2012. The full text of the plan agreement is available at www.sedar.com. The Company has received the conditional acceptance of the Shareholders Rights Plan from the TSX Venture Exchange. The Shareholders Rights Plan is subject to the approval of the shareholders of Sangoma at the upcoming annual and special shareholders meeting to be held on December 10, 2012.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on October 12, 2012 at 11.30am Eastern Standard Time to discuss the quarterly and annual 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 Sangoma call.