Mr. David Moore reports
SANGOMA REPORTS THIRD QUARTER RESULTS FOR FISCAL 2012
Sangoma Technologies Corp. has released highlights of its unaudited consolidated interim financial statements under international financial reporting standards for the third quarter of fiscal 2012 ended March 31, 2012.
Sales of $3.61-million for the third quarter of fiscal 2012 were an all-time record for quarterly revenue at Sangoma, 16 per cent higher than the same quarter last year and 5 per cent higher than the immediately preceding second fiscal quarter of 2012.
"I'm truly very proud of all our great people here at Sangoma and of our partners around the world. Revenues at Sangoma have been growing solidly now for several quarters under new management, both sequentially quarter over quarter and year over year," said Bill Wignall, president and chief executive officer of Sangoma. "Delivering this kind of consistent growth is exactly our strategy, and it's especially gratifying given the difficult economic conditions in some of our key global territories, such as Europe. It further validates that our investments in R&D, as well as in marketing and sales, are bearing fruit. Sangoma has already released eight excellent new products so far this fiscal year, with more exciting launches expected to come in our fourth quarter."
The attached table shows the key metrics tracked by the company using the international financial reporting standards accounting standards.
(in millions $, unless otherwise indicated)
Q3 FY 2012 Q3 FY 2011 Q2 FY 2012
Sales $ 3.61 $ 3.11 $ 3.43
Gross profit $ 2.41 $ 2.27 $ 2.51
Operating expense $ 2.32 $ 1.89 $ 2.32
Operating income $ 0.10 $ 0.38 $ 0.19
Net income $ 0.10 $ 0.28 $ 0.17
Net earnings per
diluted) $ 0.003 $ 0.009 $ 0.006
EBITDA $ 0.23 $ 0.52 $ 0.33
Following the transition to international financial reporting standards, all fiscal 2011 numbers have been updated to reflect the IFRS accounting conventions and will not match 2011 numbers previously reported under Canadian generally accepted accounting principles, as explained in the interim financial statements and management's discussion and analysis.
Operating income and earnings before interest, taxes, depreciation and amortization are metrics used by the company to monitor its performance, and the definitions may be found in the accompanying MD&A posted at SEDAR.
Gross profit for the quarter was $2.41-million, an increase of 6 per cent from the same period in fiscal 2011 and 4 per cent below the immediately preceding quarter. As a percentage of revenue, gross margin was 67 per cent.
Operating expenses for the quarter ended March 31, 2012, were $2.32-million, 23 per cent higher than those of the same quarter last year and almost identical with the spending run rate in the immediately preceding fiscal second quarter of 2012. The year-over-year increase in spending reflects Sangoma's continuing investment in new marketing, sales and product development initiatives.
Operating income (revenue less expenses before financing and one-time costs) was $100,000 for the fiscal third quarter, versus $380,000 in the same quarter last year.
Wignall continued, "These kinds of financial results are exceptional for our industry, where very few of our direct competitors are growing significantly, are profitable and generating cash like we are at Sangoma."
Net income for the fiscal third quarter of 2012 was $100,000 (0.3 cent per share fully diluted) compared with net income of $280,000 (0.9 cent per share fully diluted) for the fiscal third quarter of 2011.
Earnings before interest, taxes, depreciation and amortization for the quarter ended March 31, 2012, were $230,000, versus the $520,000 in the same quarter one year ago.
President and chief executive officer, Mr. Wignall, and chief financial officer, David Moore, will host a conference call on May 17, 2012, at 12 p.m. Eastern Daylight Time to discuss the quarterly results. The dial-in number for the call is 1-800-319-4610 (international 1-604-638-5340). Investors are requested to dial in five to 10 minutes before the scheduled start time and ask to join the Sangoma call.
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