MARKHAM, ONTARIO–(Marketwired – Nov. 24, 2014) – 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 unaudited consolidated interim financial statements for the first quarter of fiscal 2015, ended September 30, 2014.
Sales for the first quarter of fiscal 2015 were $2.8 million, up slightly from the $2.7 million in the first quarter of fiscal 2014. As in previous years, Sangoma’s sales in the first quarter were well below those of the fourth quarter in the prior fiscal year, owing to seasonally lower demand during summer months, a trend that the company expects will continue.
“We know our first quarter each year is a bit challenging, especially when compared to our fourth quarters which are typically the strongest,” said Bill Wignall, President and CEO at Sangoma. “We continue to focus on the balance between maintaining profitability while generating reasonable growth, and while I’m quite pleased we produced a positive bottom line this first quarter, I’d still have liked to see slightly more growth in spite of the seasonality.”
| Q1 FY2015 | Q1 FY2014 | Change | Q4 FY2014 | Change | ||||
| Sales | $2.77 m | $2.74 m | 1% | $3.98 m | (30% | ) | ||
| Gross profit | $1.83 m | $1.83 m | 0% | $2.65 m | (31% | ) | ||
| Operating Expense | $1.81 m | $2.03 m | (11% | ) | $2.04 m | (11% | ) | |
| Operating Income1 | $0.02 m | -$0.20 m | $0.61 m | |||||
| Net income | $0.02 m | -$0.16 m | $0.52 m | |||||
| Net earnings per | $0.001 | ($0.006 | ) | $0.018 | ||||
| share (fully diluted) | ||||||||
| EBITDA1 | $0.08 m | -$0.09 m | $0.51 m | |||||
| 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 https://www.sedar.com/. |
Gross profit was $1.83 million for the quarter or 66% of revenue, consistent with the percentages experienced over recent quarters.
Operating expense for the first quarter was $1.81 million, 11% below that of the $2.03m in the same quarter of fiscal 2014 with the foreign exchange gain accounting for most of the difference between years.
Operating Income was $0.02 million for the quarter, $0.22 million higher than that of the same quarter last year, as a result of the exchange rate impact noted above.
Net Income for the quarter ended September 30, 2014 was $0.02 million ($0.001 per share fully diluted), compared to net loss of $0.16 million (-$0.006 per share fully diluted) for the quarter ended September 30, 2013.
Sangoma has a solid cash balance of $5.07 million, up somewhat from $4.98 million on June 30, 2014. Working capital was $11.38 million as compared to $11.35 million one quarter ago.
The Board of Directors of Sangoma Technologies invites all shareholders to the annual shareholders meeting to be held on December 17, 2014, the details of which have been mailed to shareholders.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Wednesday November 26 at 11am EST to discuss these quarterly results. The dial-in number for the call is 1-800-319-4610. Investors are requested to dial in 5 to 10 minutes before the scheduled start time and ask to join the Sangoma call.