MARKHAM, ONTARIO–(Marketwired – Feb. 19, 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 second quarter of fiscal 2015, ended December 31, 2014.
Sales for the second quarter of fiscal 2015 were $3.42 million, up 23% from the first quarter of fiscal 2015 ended September 30, 2014 and down slightly from the $3.63 million in the second quarter of fiscal 2014.
“Given the amount of management attention that had to be dedicated to closing our two recent acquisitions during the second quarter, I view these results as satisfactory, if not exciting,” said Bill Wignall, President and CEO at Sangoma. “Revenues were a little below our expectations but we were careful with spending to maintain an acceptable level of Operating Income. Newly introduced products continue to approach 50% of revenue, consistent with our expectation, yet sales of some product categories have softened somewhat, requiring further focus. We are very excited about the FreePBX/Schmooze and RockBochs deals which closed on January 1, 2015. The results from these companies are not part of our second quarter’s results, but Sangoma’s third quarter of fiscal 2015 will include a full three months of results from both transactions, which are expected to be accretive.”
------------------------------------------------------------ ---------------- Q2 Q2 Q1 FY2015 FY2014 Change FY2015 Change Sales $ 3.42 m $ 3.63 m (6%) $ 2.77 m 23% Gross profit $ 2.16 m $ 2.44 m (11%) $ 1.83 m 18% Operating Expense $ 2.06 m $ 2.13 m (3%) $ 1.81 m 14% Operating Income(1) $ 0.10 m $ 0.31 m $ 0.02 m Net income $ (0.16) m $ 0.22 m $ 0.02 m Net earnings per share (fully diluted) $ (0.006) $ 0.008 $ 0.001 EBITDA(1) $ 0.16 m $ 0.43 m $ 0.08 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 www.sedar.com.
Gross profit was $2.16 million for the quarter or 63% of revenue, which is slightly lower than recent quarters due to the product mix sold this quarter.
Operating expense for the second quarter was $2.06 million, 3% below that of the $2.13m in the same quarter of fiscal 2014.
Operating Income was $0.10 million for the quarter versus $0.31 million in the same quarter last year, as a result of the slightly lower revenue and resulting margin noted above.
Net Loss for the quarter ended December 31, 2014 was $0.16 million (-$0.006 per share fully diluted) reflecting the $0.29m of expense expected to be incurred for the closing of the two acquisitions on January 1, 2015, compared to a net profit of $0.22 million ($0.008 per share fully diluted) for the quarter ended December 31, 2013.
On December 31, 2014 Sangoma had a solid cash balance of $6.14 million, representing $4.80 million net of the $1.34 million drawn from the operating line. This is down just slightly from $4.98 million on June 30, 2014, due primarily to the purchases of inventory. Working capital was $11.21 million as compared to $11.35 million on June 30, 2014. The $1.34 million draw against the $2.5 million operating line of credit established on December 30, 2014, was undertaken to provide operational cash for use as necessary following the closing of the two transactions on January 1, 2015 for which $4.7 million of cash was required.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Tuesday February 24, 2015 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.