MARKHAM, ONTARIO, November 18, 2015 – 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 2016, ended September 30, 2015.
Sales for the first quarter of fiscal 2016 were $4.71 million, growing 70% from the $2.77 million in the first quarter of fiscal 2015. As in previous years, Sangoma’s revenue in the first quarter was somewhat below that 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.
“It is very gratifying to see Sangoma continue its forward progress, with sales up 70% year-over-year, in what is historically a challenging quarter for us”, said Bill Wignall, President and CEO of Sangoma. “It is reassuring to see the seasonal decline in revenue from the fourth quarter, shrink this year, as the portion of revenue that is recurring continues to grow, a trend we will seek to build on this as the year unfolds. I remain pleased with the contribution from the new businesses, especially at a time when we experienced softer demand for our older products. And finally, I’m encouraged by the strengthening profitability over last year, on both the EBITDA and Operating Income lines, as our sales grow.”
| Q1 FY2016 | Q1 FY2015 | Change | Q4 FY2015 | Change | |
| Sales | $4.71 m | $2.77 m | 70% | $5.34 m | (12%) |
| Gross profit | $3.35 m | $1.83 m | 83% | $3.57 m | (6%) |
| Operating Expense | $3.20 m | $1.81 m | 77% | $3.07 m | 4% |
| Operating Income | $0.15 m | $0.02 m | $0.50 m | ||
| Net Income | $0.09 m | $0.02 m | $0.15 m | ||
| Net earnings per share (fully diluted) | $0.003 | $0.001 | $0.005 | ||
| EBITDA1 | $0.38 m | $0.13 m | $0.75 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 MDu0026amp;A posted today at https://www.sedar.com/.
Gross profit was $3.35 million for the quarter, up over 80% from last year and gross margin at 71% was slightly higher than expected, due to product mix.
Operating expense for the first quarter was $3.20 million, 77% higher than the same quarter in fiscal 2015 reflecting the higher expenses resulting from the addition of staff and other expenses from the companies acquired on January 1, 2015.
EBITDA was $0.38 million for the first quarter of fiscal 2016, up from $0.13 million in the same period last year. Operating income in the first quarter was $0.15 million, up from $0.02 million in the first quarter of fiscal 2015.
Net income for the first quarter ended September 30, 2015 was $0.09 million ($0.003 per share fully diluted), compared to a net profit of $0.02 million ($0.001 per share fully diluted) for the quarter ended September 30, 2014.
Sangoma had working capital of $6.43 million on September 30, 2015, up slightly compared to $6.36 million on June 30, 2015, and finished the quarter with a cash balance of $1.80 million, down $0.72 million also compared to June 30.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Friday November 20, 2015 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.