Sangoma Reports First Quarter 2010-2011 Results
November 16 2010 - 7:04PM
Marketwired
Sangoma Technologies Corporation (TSX VENTURE: STC), today released
highlights of its unaudited financial results for the quarter ended
September 30, 2010.
Q12010-2011 Q12009-2010 Change
Sales $2.51 million $3.12 million -19%
Gross profit $1.82 million $2.37 million -23%
Net income before provision for taxes $0.10 million $0.88 million -88%
Net income $0.05 million $0.56 million -90%
EBITDA $0.53 million $1.18 million -55%
Net earnings per share (fully
diluted) $ 0.002 $ 0.019
Sales for the first quarter of fiscal 2011 ended September 30,
2010 were a disappointing $2.51 million as compared with $3.12
million for the quarter ended September 30, 2009, a decrease of
19%. This decline in revenue was dominated by the North American
market where sales decreased 45% versus the same quarter last year.
North America generally (and the United States specifically) have
experienced more dramatic and longer lasting effects of the world
recession, and Sangoma's sales into these markets have suffered as
a result. Further, Sangoma's tight control over marketing and sales
activity for the past year or so during the downturn, and a lack of
or delay in new product launches, has also had a pronounced effect.
Sangoma is taking immediate action in an attempt to correct this
issue with a well-considered series of new activities in these
areas, under new leadership. Sales outside of North America grew by
28% over the same quarter last year, due primarily to efforts to
add/motivate/incent new channel partners and because some of these
international markets have recovered more quickly from the
recession. While the company believes second quarter revenue may
show improvement over the first quarter of fiscal 2011, it is
unclear if the quarter ended September 30, 2010 may be reflective
of future results. Sangoma will closely monitor the corrective
action described above, but does not issue guidance because the
size and timing of future orders are uncertain.
Gross margins and operating expenses were fairly consistent with
the run-rate from recent quarters. EBITDA for the quarter was $0.53
million as compared to $1.18 million for the quarter ended
September 30, 2009, a decrease of 55%.
On September 30, 2010 Sangoma had working capital of $10.66
million, as compared to $10.92 million on September 30, 2010.
Working capital on September 30, 2010 included $7.61 million in
cash and equivalents.
President and CEO, Bill Wignall, and CFO, David Moore will host
a conference call on Wednesday, November 17, 2010 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. 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.
Contacts: Sangoma Technologies Corporation David Moore Chief
Financial Officer (905) 474-1990 Ext. 107 dsmoore@sangoma.com
www.sangoma.com
Sangoma Technologies (TSXV:STC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Sangoma Technologies (TSXV:STC)
Historical Stock Chart
From Aug 2023 to Aug 2024