MARKHAM, ONTARIO–(Marketwired – May 20, 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 third quarter of fiscal 2015, ended March 31, 2015.
Sales for the third quarter of fiscal 2015 were a record $4.79 million, up 40% from the second quarter of fiscal 2015 ended December 31, 2014 and 38% from the third quarter of fiscal 2014.
“These results start to demonstrate the attractiveness of our recent acquisitions of FreePBX/Schmooze and RockBochs,” said Bill Wignall, President and CEO at Sangoma. “We can now see the benefit to Sangoma’s top line, gross margin, and profitability, as a result of higher software and service components to our business. Customers have reacted well to the joint offerings, so it is gratifying to see Sangoma now able to produce results that validate the strategic fit between the companies. As noted last quarter, revenues in the traditional Sangoma business were below our expectations this past quarter, with sales of some product categories having softened. There was a tremendous amount of work on the part of many people at the combined company, that went into putting the acquisitions together and beginning the integration. With some of that heavy lifting behind us, we now need to refocus on growing all parts of our business. But for the first quarter post acquisitions, this is an encouraging start.”
|Q3 FY2015||Q3 FY2014||Change||Q2 FY2015||Change|
|Sales||$4.79 m||$3.48 m||38%||$3.42 m||40%|
|Gross profit||$3.41 m||$2.34 m||46%||$2.16 m||58%|
|Operating Expense||$3.10 m||$2.12 m||46%||$2.06 m||50%|
|Operating Income1||$0.31 m||$0.22 m||$0.10 m|
|Net income||$0.25 m||$0.16 m||($0.16) m|
|Net earnings per share (fully diluted)||$0.008||$0.005||($0.006)|
|EBITDA1||$0.52 m||$0.33 m||$0.16 m|
|1Operating 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 $3.41 million for the quarter or 71% of revenue, which is higher than recent quarters owing to the impact of the new acquisitions.
Operating expense for the third quarter was $3.10 million, 46% higher than the $2.12m in the same quarter of fiscal 2014, also the result of the higher expense run rate that now exists due to the recent acquisitions.
Operating Income was $0.31 million for the quarter versus $0.22 million in the same quarter last year with the new acquisitions being accretive as expected.
Net Income for the quarter ended March 31, 2015 was $0.25 million ($0.008 per share fully diluted) compared to net income of $0.16 million ($0.005 per share fully diluted) for the quarter ended March 31, 2014.
As a result of the consideration paid for the acquisitions, Sangoma had working capital of $6.69 million on March 31, 2015, as compared to $11.35 million on June 30, 2014, providing ample liquidity. The company generated $0.52m of cash from operations during the third quarter.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Monday May 25, 2015 at 11.30am 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.