Talking about growth here's one of best in class on the TSX-V
Sangoma earns $390,000 in Q1 fiscal 2018
2017-11-16 19:02 ET - News Release
Mr. Bill Wignall reports
SANGOMA REPORTS RESULTS FOR THE FIRST QUARTER OF FISCAL 2018. REVENUE DOUBLES YEAR-OVER-YEAR AND QUARTERLY EBITDA EXCEEDS $1 MILLION FOR THE FIRST TIME
Sangoma Technologies Corp. has released highlights of its first quarter financial results and interim unaudited consolidated financial statements for the first quarter of fiscal 2018, ended Sept. 30, 2017.
For the first quarter of fiscal 2018, sales were a record $11.85 million, more than double that of the same quarter last year and more than 50% over the immediately preceding quarter.
Q1 FY 2018 Q1 FY 2017 Q4 FY 2017 Sales $11.85M $5.82M $7.68M Gross profit 6.12M 3.77M 4.93M Operating expense 5.37M 3.64M 4.52M Operating income (1) 0.75M 0.13M 0.41M Net income 0.39M 0.06M 0.17M Net earnings per share (fully diluted) $0.011 $0.002 $0.005 EBITDA (1) 1.10M 0.42M 0.70M
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 .
"Our first quarter results provide a very good start to the year", said Bill Wignall, President and CEO of Sangoma. "Revenue was strong, augmented by a large one-time order that will not recur next quarter, which helped offse t the significant revenue impact of a substantially weakened US dollar and the seasonality exhibited in prior years. It is especially gratifying to see our quarterly EBITDA above $1 million for the first time. I'm also really pleased with the positive contribution, as anticipated, from the VoIP Supply acquisition completed early in the quarter. I'd like to extend a warm welcome to that great group of talented people in Buffalo, who are now part of the growing Sangoma family."
Gross profit was $6.12 million for the first quarter, with gross margin percent at 52%.
Operating expenses were $5.37 million in the first quarter, up 48% from the same quarter in fiscal 2017, primarily resulting from modest spending increases to support Sangoma's growth and from the acquisition of VoIP Supply.
EBITDA was $1.10 million for the quarter ended September 30, 2017 up from $0.42 in the same quarter of fiscal 2017 and also materially above the $0.70 million earned in the immediately preceding fourth quarter, by over 50%.
Sangoma continues to maintain a healthy balance sheet and finished the quarter with a cash balance of $3.00 million and working capital of $4.32 million. Adjusted cash flow from operations was $1.39 million this quarter, significantly up from the $0.29 million generated in the first quarter of fiscal 2017.
Outlook for fiscal year 2018
Sangoma's Board of Directors considers that the first quarter results are in line with the guidance already provided, and thus reaffirms forecasted revenue in fiscal 2018 of approximately $46 million and associated EBITDA of about $4 million.
Conference Call
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Monday November 20, 2017 at 12pm noon Eastern Standard Time to discuss the quarterly results. The dial-in number for the call is 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. If you are unable to listen to the call a recording of the prepared remarks will be posted on Sangoma's website in the Investor Relations section.
About Sangoma Technologies Corporation
Sangoma Technologies is a trusted leader in delivering Unified Communications solutions for SMBs, Enterprises, OEMs, Carriers and service providers. Sangoma's globally, scalable offerings include both on-premises and cloud-based phone systems, telephony services and industry leading Voice-Over-IP solutions, which together provide seamless connectivity between traditional infrastructure and new technologies.
Sangoma's products and services are used in leading PBX, IVR, contact center, carrier networks and data-communication applications worldwide.
Businesses can achieve enhanced levels of collaboration, productivity and ROI with Sangoma. Everything Connects, Connect with Sangoma!
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