MARKHAM, ONTARIO--(Marketwire - Feb. 22, 2011) - Sangoma Technologies Corporation (TSX VENTURE:STC), today released highlights of its unaudited financial results for the quarter ended December 31, 2010.
|Q2 FY2011||Q1 FY2011||Change||Q2 FY2010||Change|
|Sales||$||2.98 m||$||2.51 m||19||%||$||2.97 m||0||%|
|Gross profit||$||2.30 m||$||1.82 m||26||%||$||2.21 m||4||%|
|Net income before provision for taxes||$||0.45 m||$||0.10 m||350||%||$||0.63 m||(29||%)|
|Net income||$||0.34 m||$||0.05 m||580||%||$||0.37 m||(7||%)|
|Net earnings per share||$||0.011||$||0.002||450||%||$||0.012||(8||%)|
|EBITDA||$||0.95 m||$||0.53 m||78||%||$||0.95 m||0||%|
Sales for the second quarter of fiscal 2011 ended December 31, 2010 were $2.98 million.
This compares with sales of $2.51 million during the company's first quarter of fiscal 2011, a 19% increase. Further, revenue from the US market was $1.14 million in this quarter, up substantially from the $0.88 million in the first quarter of fiscal 2011. It was the US market in the first quarter of fiscal 2011 which was the principal contributor to the sales decline in that quarter, and the second quarter of fiscal 2011 shows significant improvement in that territory. Compared to the same quarter of last year, sales revenue of $2.97 million was up slightly.
Gross margins for the quarter were 77%, 4% above the company's immediately preceding first quarter of fiscal 2011, and 3% higher than those of the quarter ended December 31, 2009. This is the result of a beneficial mix of orders weighted slightly more heavily towards software this quarter, than is historically the case for Sangoma. Expenses for the quarter ended December 31, 2010 were $1.85 million, 7% higher than those of fiscal first quarter ended September 30, 2010, and 17% higher than those of the comparable quarter last year. Net income was $0.34 million ($0.011 per share fully diluted) compared to net income of $0.05 million last quarter and $0.37 million ($0.012 per share fully diluted) for the quarter ended December 31, 2009.
On December 31, 2010 Sangoma had working capital of $10.90 million including $7.68 million in cash and equivalents, as compared to $9.57 million on December 31, 2009.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Thursday February 24, 2011 at 11 a.m. Eastern Standard Time to discuss the quarter's 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.
About Sangoma Technologies Corporation
Sangoma is the premium provider of voice and data connectivity components for software-based communication applications. Sangoma's data cards, voice cards, gateways and connectivity software are used in leading PBX, IVR, contact center and data- communication applications worldwide. The product line represents a comprehensive toolset for deploying cost-effective, powerful, and flexible software communication applications.
Founded in 1984, Sangoma Technologies Corporation is publicly traded on the TSX Venture Exchange (TSX VENTURE:STC). Additional information on Sangoma can be found at: www.sangoma.com.
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements, including statements regarding the future success of our business, development strategies and future opportunities.
Forward-looking statements include, but are not limited to, statements concerning estimates of expected expenditures, statements relating to expected future production and cash flows, and other statements which are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should" and similar expressions indicate forward-looking statements.
Although Sangoma believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date that the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in forward-looking statements. Sangoma undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by law.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur. Although Sangoma believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in the management's discussion and analysis include, but are not limited to changes in exchange rate between the Canadian Dollar and other currencies, changes in technology, changes in the business climate, changes in the regulatory environment, the decline in the importance of the PSTN and new competitive pressures. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.