Sangoma Reports Q4 and Annual Results for Fiscal 2012
October 10 2012 - 8:51PM
Marketwired Canada
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 audited
consolidated financial statements under IFRS for the fourth quarter and full
year of fiscal 2012, ended June 30, 2012 and the adoption of a shareholder
rights plan.
Sales for the fourth quarter of fiscal 2012 were $3.71 million, 14% higher than
the same period last year and an all-time record for quarterly revenue at
Sangoma. Annual revenue for fiscal 2012 was $13.76 million, up 16% versus last
year, and also an all-time record for Sangoma. For the second year in a row,
sales have grown consistently from the first quarter through the fourth quarter.
"I am very pleased to have closed fiscal 2012 with such a strong revenue quarter
and year, particularly against the backdrop of sales downturns amongst many of
our competitors," said Bill Wignall President and CEO of Sangoma. "We see our
strategy continuing to bear fruit. The operational re-build is complete, we
dramatically expanded our product portfolio with 10 new products using more
focused R&D, we built a global sales and marketing presence with increased
investment, we have won early successes in some key new carrier customers, and
we completed the acquisition of the assets of VegaStream. It is most gratifying
to see these strategic decisions reflected in growing sales during such
turbulent times. I could not be more proud of our talented team of people and
partners who work so hard every day, and I thank our customers for putting their
faith in Sangoma."
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Q4 Q4
FY2012 FY2011 Change FY2012 FY2011 Change
Sales $ 3.71 m $ 3.25 m 14% $ 13.76 m $ 11.86 m 16%
Gross profit $ 2.36 m $ 2.44 m (3%) $ 9.47 m $ 8.84 m 7%
Operating
Expense $ 2.40 m $ 2.09 m 15% $ 8.41 m $ 7.61 m 11%
Operating
Income(1) -$0.04 m $ 0.36 m (111%) $ 1.05 m $ 1.23 m (15%)
Net income -$0.31 m -$4.39 m $ 0.41 m -$3.76 m
Net earnings
per share
(fully
diluted) $ (0.011) $ (0.145) $ 0.014 $ (0.124)
EBITDA(1) $ 0.09 m $ 0.49 m (82%) $ 1.58 m $ 1.77 m (11%)
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Following the transition to IFRS effective July 1, 2010, all fiscal 2011
numbers have been restated to reflect IFRS accounting conventions and will
not match 2011 numbers previously reported under Canadian GAAP, as explained
in the Company's Audited Financial Statements. (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 was $2.36 million for the quarter and $9.47 million for the year,
or 64% and 69% of revenue respectively. Gross margin as a percent of revenue is
lower than prior periods due to Sangoma's expanded product portfolio, such that
sales of this new product mix involve lower margins on some products than its
traditional board business.
Operating expense for the fourth quarter was $2.40 million and for the year was
$8.41 million before one-time business acquisition costs. Annual operating
expenses were 11% higher than the $7.61 million incurred in the prior fiscal
year, reflecting the increased investment in product development and sales and
marketing.
Operating Income was $1.05 million for the fiscal year, or about 8% of annual
revenue with a slight loss of $0.04m being incurred in the fourth quarter.
"Delivering increased revenue, profitably, while maintaining a healthy balance
sheet was a key objective for Sangoma in fiscal 2012 and 16% growth is really
great in this environment," continued Wignall. "While our existing distribution
partners continue to perform well, we are also seeking bigger orders with larger
customers as we penetrate new geographic markets and customer segments."
Net Income for the year ending June 30, 2012 was $0.41 million ($0.014 per share
fully diluted), compared to a net loss of $3.76 million (-$0.124 per share fully
diluted) for the year ended June 30, 2011 which was impacted by two one-time
non-cash charges.
Sangoma finished the year with a solid cash balance of $5.02 million and had
working capital of $11.86 million on June 30, 2012 as compared to $12.36 million
on June 30, 2011.
The Board of Directors of Sangoma Technologies approved the adoption of a
Shareholder Rights Plan and set the Record Time in respect of the Shareholders
Rights Plan for the close of business on October 10, 2012. The full text of the
plan agreement is available at www.sedar.com. The Company has received the
conditional acceptance of the Shareholders Rights Plan from the TSX Venture
Exchange. The Shareholders Rights Plan is subject to the approval of the
shareholders of Sangoma at the upcoming annual and special shareholders meeting
to be held on December 10, 2012.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference
call on October 12, 2012 at 11.30am Eastern Standard Time to discuss the
quarterly and annual 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 a leading provider of hardware and software components that enable or
enhance IP Communications Systems for both telecom and datacom applications.
Sangoma's data boards, voice boards, gateways and connectivity software are used
in leading PBX, IVR, contact center and data-communication applications
worldwide. The product line includes both hardware and software components that
offer a comprehensive toolset for deploying cost-effective, powerful, and
flexible communication solutions.
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.
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