MARKHAM, ONTARIO, November 16, 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 first quarter financial results and interim unaudited consolidated financial statements for the first quarter of fiscal 2018, ended September 30, 2017.
For the first quarter of fiscal 2018, sales were a record $11.85 million, more than double that of the same quarter last year and more than 50% over the immediately preceding quarter.
|Q1 FY2018||Q1 FY2017||Change||Q4 FY2017||Change|
|Sales||$11.85 m||$5.82 m||104%||$7.68 m||54%|
|Gross profit||$6.12 m||$3.77 m||62%||$4.93 m||24%|
|Operating Expense||$5.37 m||$3.64 m||48%||$4.52 m||19%|
|Operating Income1||$0.75 m||$0.13 m||$0.41 m|
|Net Income||$0.39 m||$0.06 m||$0.17 m|
|Net earnings per share (fully diluted)||$0.011||$0.002||$0.005|
|EBITDA1||$1.10 m||$0.42 m||162%||$0.70 m||57%|
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.
“Our first quarter results provide a very good start to the year”, said Bill Wignall, President and CEO of Sangoma. “Revenue was strong, augmented by a large one-time order that will not recur next quarter, which helped offset the significant revenue impact of a substantially weakened US dollar and the seasonality exhibited in prior years. It is especially gratifying to see our quarterly EBITDA above $1 million for the first time. I’m also really pleased with the positive contribution, as anticipated, from the VoIP Supply acquisition completed early in the quarter. I’d like to extend a warm welcome to that great group of talented people in Buffalo, who are now part of the growing Sangoma family.”
Gross profit was $6.12 million for the first quarter, with gross margin percent at 52%.
Operating expenses were $5.37 million in the first quarter, up 48% from the same quarter in fiscal 2017, primarily resulting from modest spending increases to support Sangoma’s growth and from the acquisition of VoIP Supply.
EBITDA was $1.10 million for the quarter ended September 30, 2017 up from $0.42 in the same quarter of fiscal 2017 and also materially above the $0.70 million earned in the immediately preceding fourth quarter, by over 50%.
Sangoma continues to maintain a healthy balance sheet and finished the quarter with a cash balance of $3.00 million and working capital of $4.32 million. Adjusted cash flow from operations was $1.39 million this quarter, significantly up from the $0.29 million generated in the first quarter of fiscal 2017.
Outlook for fiscal year 2018
Sangoma’s Board of Directors considers that the first quarter results are in line with the guidance already provided, and thus reaffirms forecasted revenue in fiscal 2018 of approximately $46 million and associated EBITDA of about $4 million.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Monday November 20, 2017 at 12pm 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. If you are unable to listen to the call a recording of the prepared remarks will be posted on Sangoma’s website in the Investor Relations section.