MARKHAM, ONTARIO, February 13, 2018 – 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 second quarter financial results and interim unaudited consolidated financial statements for the second quarter of fiscal 2018, ended December 31, 2017.
For the second quarter of fiscal 2018, sales were $11.74 million, 79% more than in the same quarter last year and the twelfth quarter in row of higher revenue versus the prior year.
| Q2 FY2018 | Q2 FY2017 | Change | Q1 FY2018 | Change | |
| Sales | $11.74 m | $6.57 m | 79% | $11.85 m | 1% |
| Gross profit | $5.99 m | $4.35 m | 38% | $6.12 m | 2% |
| Operating Expense | $5.08 m | $3.86 m | 32% | $5.37 m | 5% |
| Operating Income1 | $0.91 m | $0.49 m | $0.75 m | ||
| Net Income | $0.61 m | $0.29 m | $0.39 m | ||
| Net earnings per share (fully diluted) | $0.017 | $0.009 | $0.011 | ||
| EBITDA1 | $1.27 m | $0.76 m | 67% | $1.10 m | 15% |
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 www.sedar.com.
“I am pleased with the continued revenue strength, as sales were well above last year and were in line with the first quarter, in spite of the first quarter having been positively impacted by a large one-time order,” said Bill Wignall, President and CEO. “Quarterly EBITDA was above our first quarter, exceeding $1 million for the second time, and on a year-to-date basis Net Income has already exceeded 2017’s full year figure. I am also very encouraged by the performance and results from the newly added CCD team who joined the Sangoma family following the acquisition last month, so I look forward to reporting combined results at the end of this quarter.”
Gross profit of $5.99 million for the second quarter was 38% higher than for the second quarter of fiscal 2017, with gross margin percent at 51% of sales.
Operating expenses were $5.08 million in the second quarter, up 32% from the same quarter in fiscal 2017, reflecting normal expenses in the operation of VoIP Supply and controlled spending increases to invest in Sangoma’s growth.
EBITDA was $1.27 million for the quarter ended December 31, 2017 up 27% from the $0.76 million in the same quarter of fiscal 2017 and at over 10% of revenue, was above our fiscal 2018 target.
Sangoma continues to maintain a healthy balance sheet and finished the quarter with a cash balance of $3.34 million and working capital of $5.38 million.
Outlook for fiscal year 2018
Sangoma’s Board of Directors considers that the year-to-date results, along with expectations for the CCD business purchased in January, support the guidance previously provided for fiscal 2018. That guidance included revenue of about $53 million and approximately $5.5 million of EBITDA.
Conference Call
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Thursday, February 15, 2018 at 1pm 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.