Sangoma Reports Q4 and Full Year Results for Fiscal 2017

Data Investing

Sangoma Technologies (TSXV:STC) has announced highlights of its fourth quarter financial results for the full fiscal 2017 year ended June 30, 2017. As quoted in the press release: For the fourth quarter of fiscal 2017, sales were a record $7.68 million, 26% higher than the same quarter last year and 13% over the immediately preceding …

Sangoma Technologies (TSXV:STC) has announced highlights of its fourth quarter financial results for the full fiscal 2017 year ended June 30, 2017.
As quoted in the press release:

For the fourth quarter of fiscal 2017, sales were a record $7.68 million, 26% higher than the same quarter last year and 13% over the immediately preceding quarter. For the full year, revenue was $26.88 million, the highest in Sangoma’s history and 27% above last year.
Q4 FY2017 Q4 FY2016 Change FY2017 FY2016 Change
Sales $7.68 m $6.10 m 26% $26.88 m $21.19 m 27%
Gross profit $4.93 m $3.75 m 32% $17.53 m $14.41 m 22%
Operating Expense $4.52 m $3.83 m 18% $16.04 m $14.02 m 14%
Operating Income¹ $0.41 m -$0.08 m $1.49 m $0.39 m
Net income $0.17 m -$0.16 m $0.80 m $0.11 m
Net earnings per share (fully diluted) $0.005 ($0.005) $0.023 $0.004
EBITDA¹ $0.70 m $0.19 m $2.61 m $1.43 m
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.
“The hard work over the past few years is visible in our fiscal 2017 results, with sales up 27% and EBITDA nearly doubling from last year”, said Bill Wignall, President and CEO of Sangoma. “The transition of the company to one with a full unified communications suite, available in both Cloud and Premise based versions, has laid the foundation for further expansion. Sales this quarter exceeded $7m for the first time, and Cloud-based services, software and support revenues continue to grow as an important part of our corporate strategy. I’m particularly pleased to see our operating margins continuing to strengthen, with EBITDA above 9% of sales this year, compared to about 7% in fiscal 2016. I’m pleased with the early impact of the VoIPSupply acquisition just after year end, and the company continues to seek further prudent acquisitions where appropriate. Overall, I’m excited by Sangoma’s consistent ability to build our business in this challenging environment of change and I am confident that we can maintain this progress.”
Gross profit was $17.53 million for the year. Gross margin was 65% for the year and 64% in the most recent quarter. The company continues to experience the expected margin pressure due to competitive pricing, products in its portfolio at various gross margins, and differing sales models and regions. We expect this trend to continue.