MARKHAM, ONTARIO, August 13, 2020 – Sangoma Technologies Corporation (TSX VENTURE:STC), a trusted leader in delivering Communications as a Service solutions for businesses of all sizes, OEMs and Service Providers, today announced a preliminary update to unaudited revenue and EBITDA for its fiscal year 2020, ended June 30, 2020.
“Many of our shareholders seek information about our fiscal year, before the full audit cycle is completed”, noted David Moore, Sangoma’s Chief Financial Officer. “This release is a way for us to provide a business update and accelerate some high level disclosure, given Sangoma will announce our full financial results in October as usual, after the completion of our annual audit. At that point, we will hold a conference call with investors to discuss full results in detail.”
Sales for the fiscal year 2020 are expected to be at the upper end of guidance, between $131 and $132 million. EBITDA is anticipated to exceed previously announced guidance of $19-21 million, and thus is expected to be above $21 million.
“This has been an unusually challenging period globally, so I am pleased that Sangoma has delivered another strong year at the upper end of revenue guidance”, said Bill Wignall, President and CEO of Sangoma. “It is reassuring to see continued momentum in the business during these difficult times, driven by sequential growth in our service revenues (with some modest softening in product sales as anticipated during the peak period of the COVID-19 impact), and EBITDA continuing to expand as well, now expected to exceed $21 million for the year. Subsequent to the end of Fiscal 2020, Sangoma raised over $80 million in gross proceeds via over-subscribed equity offering, to put the company in a strong position despite the global uncertainty. I look forward to sharing full financial results with our shareholders in a few months once our audit is complete, at which time we will provide guidance for Fiscal 2021, as normal.”
As indicated previously, there continues to be uncertainty regarding the full impact, duration and pace of recovery from the COVID-19 pandemic on our operations and markets, due to the evolving nature of the virus and the global economic slowdown (including varied governmental responses which may affect our business and prospects). Despite these uncertainties, Sangoma believes it is very well equipped to weather the storm, and we have taken several proactive steps in an attempt to better manage the challenges of the COVID-19 pandemic. These include:
– Continuing to operate in as close to a ‘business as normal’ manner, as is possible under these conditions, because we are an “Essential Service” under most all government rulings. We are thus exempt from the forced closures that so many other businesses are subject to. We are proud to continue providing our products and services to so many customers who count upon them, during these challenging times;
– Significant work by our operations teams to ensure that Sangoma is able to maintain supply of all our products and services, uninterrupted, to our valued customers throughout the COVID-19 pandemic;
– Reopening offices around the world as local rules allow while we remain able to operate with employees at home quite effectively;
– Ensuring the company is well positioned, financially, during this crisis. Sangoma has taken prudent, proactive cost control measures as appropriate, we have maintained all principal and interest payments on existing loans, and we raised equity during July as noted, such that the Company is well positioned to continue with its acquisition strategy despite the COVID-19 pandemic. Following completion of the equity raise, we initiated the repayment of the $9.2 million on our swingline and revolver facilities.