MARKHAM, ONTARIO–(Marketwire – May 11, 2012) – 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 under IFRS for the third quarter of fiscal 2012 ended March 31, 2012.
Sales of $3.61 million for the third quarter of fiscal 2012 were an all-time record for quarterly revenue at Sangoma, 16% higher than the same quarter last year, and 5% higher than the immediately preceding second fiscal quarter of 2012.
“I’m truly very proud of all our great people here at Sangoma and of our partners around the world. Revenues at Sangoma have been growing solidly now for several quarters under new management, both sequentially quarter over quarter, and year over year,” said Bill Wignall, President and CEO of Sangoma. “Delivering this kind of consistent growth is exactly our strategy and it’s especially gratifying given the difficult economic conditions in some of our key global territories such as Europe. It further validates that our investments in R&D as well as in marketing and sales are bearing fruit. Sangoma has already released 8 excellent new products so far this fiscal year, with more exciting launches expected to come in our fourth quarter.”
The following chart shows the key metrics tracked by the Company using the IFRS accounting standards.
| Q3 FY2012 | Q3 FY2011 | Change | Q2 FY2012 | Change | |||||||||||
| Sales | $ | 3.61 m | $ | 3.11 m | 16 | % | $ | 3.43 m | 5 | % | |||||
| Gross profit | $ | 2.41 m | $ | 2.27 m | 6 | % | $ | 2.51 m | (4 | %) | |||||
| Operating Expense | $ | 2.32 m | $ | 1.89 m | 23 | % | $ | 2.32 m | 0 | % | |||||
| Operating Income1 | $ | 0.10 m | $ | 0.38 m | (74 | %) | $ | 0.19 m | (47 | %) | |||||
| Net income | $ | 0.10 m | $ | 0.28 m | (64 | %) | $ | 0.17 m | (41 | %) | |||||
| Net earnings per share (fully diluted) | $ | 0.003 | $ | 0.009 | $ | 0.006 | |||||||||
| EBITDA1 | $ | 0.23 m | $ | 0.52 m | (56 | %) | $ | 0.33 m | (30 | %) | |||||
Following the transition to IFRS, all fiscal 2011 numbers have been updated to reflect the IFRS accounting conventions and will not match 2011 numbers previously reported under Canadian GAAP, as explained in the interim financial statements and MD&A. 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 for the quarter was $2.41 million, an increase of 6% from the same period in fiscal 2011, and 4% below the immediately preceding quarter. As a percentage of revenue, gross margin was 67%.
Operating expenses for the quarter ended March 31, 2012 were $2.32 million, 23% higher than those of the same quarter last year and almost identical with the spending run rate in the immediately preceding fiscal second quarter of 2012. The year over year increase in spending reflects Sangoma’s continuing investment in new marketing, sales and product development initiatives.
Operating Income (revenue less expenses before financing and one-time costs) was $0.10 million for the fiscal third quarter, versus $0.38 million in the same quarter last year.
Wignall continued, “These kinds of financial results are exceptional for our industry, where very few of our direct competitors are growing significantly, are profitable, and generating cash like we are at Sangoma.”
Net Income for the fiscal third quarter of 2012 was $0.10 million ($0.003 per share fully diluted) compared to Net Income of $0.28 million ($0.009 per share fully diluted) for the fiscal third quarter of 2011.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the quarter ended March 31, 2012 was $0.23 million, versus the $0.52 million in the same quarter one year ago.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Thursday, May 17, 2012 at 12 noon Eastern Daylight 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.