MARKHAM, ONTARIO, May 17, 2017 – Sangoma Technologies Corporation (TSX VENTURE:STC), a trusted leader in delivering Unified Communications solutions for SMBs, Enterprises, OEMs, and Service Providers, both on-premises and in the cloud, today announced highlights of its unaudited consolidated financial statements in Canadian dollars for the third quarter of fiscal 2017, ended March 31, 2017.
For the third quarter of fiscal 2017, sales were a record $6.81 million, 29% higher than in the same quarter last year making this the ninth quarter in a row that Sangoma has grown significantly and consistently, over the same quarter in the prior year.
|Q3 FY2017||Q3 FY2016||Change||Q2 FY2017||Change|
|Sales||$6.81 m||$5.30 m||28%||$6.57 m||4%|
|Gross profit||$4.48 m||$3.63 m||23%||$4.35 m||3%|
|Operating Expense||$4.03 m||$3.46 m||16%||$3.86 m||4%|
|Operating Income1||$0.45 m||$0.18 m||$0.49 m|
|Net Income||$0.28 m||$0.10 m||$0.29 m|
|Net earnings per share (fully diluted)||$0.008||$0.003||$0.009|
|EBITDA1||$0.73 m||$0.45 m||62%||$0.76 m||(4%)|
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.
“These solid results on both the top and bottom lines continue to build on the momentum of the last several quarters,” said Bill Wignall, President and CEO of Sangoma. “It is especially gratifying to see the extremely hard work from everyone on the Sangoma team over a long period of time, leading to increased success with our customers. And that success in the field, now delivering the trend in financial results that we’ve been planning for, as a part of our multi-year turnaround strategy. This is the impact we expected our business plan to deliver for our shareholders, so I’d like to thank our very talented team here for their continued commitment.”
Gross profit was $4.48 million for the third quarter, 23% above that of the same quarter last year, with gross margin at 66% of sales, slightly above our expectations.
Operating expenses were $4.03 million for the third quarter, 16% higher than in the same quarter of fiscal 2016, but growing at a slower rate than revenue.
EBITDA was $0.72 million for third quarter of fiscal 2017, considerably higher the $0.45 million earned in the same quarter last year.
Net income for the quarter ended March 31, 2017 was $0.28 million ($0.008 per share fully diluted), more than double the net income of $0.10 million ($0.003 per share fully diluted) for the same quarter ended March 31, 2016.
Outlook for fiscal years 2017 and 2018
In Sangoma’s press release announcing financial results for our second quarter ended December 31, the company released limited forward guidance for the very first time. That guidance included revenue forecasted to be approximately $25 million for fiscal 2017, with EBITDA of about $2.4 million for the same period. Given that third quarter results were stronger than expected, both sales and EBITDA for the full year of fiscal 2017 should exceed those estimates. Sangoma will update guidance for fiscal 2018, at the time it releases financial results for the fourth quarter and full year of fiscal 2017.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Thursday May 18, 2017 at 12 noon 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 Sangoma call.