(TheNewswire)
MARKHAM, ONTARIO - TheNewswire - October 20, 2020 - Sangoma Technologies Corporation (TSX VENTURE:STC) (TSX:STC) (OTC:SAMOF) , a trusted leader in delivering cloud-based Communications as aService ("CaaS") solutions for companies of all sizes, today announced highlights of its fourth quarterfinancial results and audited consolidated financial statements forthe fiscal year ended June 30, 2020.
Sangoma's annual revenuewas a record $131.4 million, 20% higher than in fiscal 2019, withfourth quarter sales up by 16% year-over-year as well. EBITDAexceeded guidance and was also a record at $21.6 million in fiscal2020, up 75% from last year.
1 Operating Income and EBITDA are metrics used by the Companyto monitor its performance and the definitions may be found in theaccompanying MD&A posted today at www.sedar.com .
" I am extremely pleased with the way Sangoma performed thisyear, especially given how very challenging it has been for everyoneduring the COVID-19 crisis, " said Bill Wignall, President andCEO of Sangoma. "It is truly gratifying to see the resilience ofthe business during times like these, by delivering a year with 20%revenue growth and with EBITDA expanding 75% to over $20 million forthe first time. While our fourth quarter revenue was slightly softerthan our record third quarter, as expected due to the COVID-19shutdowns, that is mostly in Product sales and its good to seeServices revenue holding up, once again exceeding half our sales. Sangoma enters fiscal 2021 with a talented team, a robust businessmodel, a broadening suite of cloud services, a very strong balancesheet, and a healthy acquisition pipeline. There is a lot to be proudof at Sangoma, and I'd particularly like to thank our staff for theirstrength and commitment during this really difficult year. And I'dalso like to express our gratitude to our customers and investors forthe ongoing trust they put in Sangoma every day."
Gross profit was $84.9 million in fiscal 2020,producing gross margin at 65% of revenue for the year, about 4percentage points better than in 2019.
Operating expenses were $74.8 million in 2020, up 25%from fiscal 2019, reflecting the additional expense consistent withthe revenue growth.
EBITDA exceeded 16% of revenue this year and at $21.6million for fiscal 2020, was up from $12.3 million in the prior year,and above the top end of guidance.
Net income for the year ended June 30, 2020 was $3.9million, more than double that of fiscal 2019.
Sangoma continues to maintain a strong balance sheetand finished the fiscal year with a cash balance of $27.2 million,which was further supplemented by the $75.6 million equity raise, netof costs, completed in July subsequent to year-end. Working capitalclosed at $4.9 million as of June 30, and Adjusted Cash Flow fromoperations at $15.0 million for the year was comfortably above the$13.5 million generated in fiscal 2019.
Outlook for fiscal year 2021
While there continues to be uncertainty regarding theongoing impact of COVID-19 on business, Sangoma has taken multiplesteps in an attempt to appropriately respond to that impact. As wecommitted to in our Business Update of August 13, Sangoma is todayissuing guidance for its fiscal year 2021 that started on July 1,2020. Revenue is expected to be between $143 and $147 million, andEBITDA is expected to be between $24 and $26 million for theyear.
Conference Call
President and CEO, Bill Wignall, Executive VicePresident Corporate Development, John Tobia and CFO, David Moore willhost a conference call on Tuesday October 20, 2020 at 5.30p.m. EasternStandard Time to discuss the quarterly results. The dial-in numberfor the call is 1-800-319-4610 (International 1-604-638-5340) . Investors arerequested to dial in 5 to 10 minutes before the scheduled start timeand ask to join the Sangoma call.
About Sangoma TechnologiesCorporation
Sangoma Technologies is a trusted leader in deliveringvalue-based Communications as a Service (CaaS) solutions forbusinesses of all sizes. Sangoma's cloud-based Services includeUnified Communication (UCaaS) business communications, Meetings as aService (MaaS), Communications Platform as a Service (CPaaS), Trunking as a Service (TaaS), Fax as a Service (FaaS), Device as a Service(DaaS), Access Control as a Service (ACaaS). In addition, Sangomaoffers a full line of communications Products, including premise-basedUC systems, a full line of deskphones and headsets, and a completeconnectivity suite (gateways/SBCs/telephony cards). Sangoma's productsand services are used in leading UC, PBX, IVR, contact center, carriernetworks, office productivity, and data communication applicationsworldwide. Sangoma is also the primary developer and sponsor ofAsterisk and FreePBX, the world's two most widely used open sourcecommunication software projects.
Sangoma Technologies Corporation is publicly traded onthe TSX Venture Exchange (TSX VENTURE: STC). Additional information onSangoma can be found at: www.sangoma.com .
Cautionary Statement RegardingForward 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 limitedto, statements concerning estimates of expected expenditures,statements relating to expected future production and cash flows, andother statements which are not historical facts. When used in thisdocument, the words such as "could", "plan","estimate", "expect", "intend","may", "potential", "should" and similarexpressions indicate forward-looking statements.
Although Sangoma believes that its expectationsreflected in these forward-looking statements are reasonable, suchstatements involve risks and uncertainties and no assurance can begiven that actual results will be consistent with theseforward-looking statements. Forward-looking statements are based onthe opinions and estimates of management at the date that thestatements are made, and are subject to a variety of risks anduncertainties and other factors that could cause actual events orresults to differ materially from those projected in forward-lookingstatements. Sangoma undertakes no obligation to update forward-lookingstatements if circumstances or management's estimates or opinionsshould change except as required by law.
Readers are cautioned not to place undue reliance onforward-looking statements, as there can be no assurance that theplans, intentions or expectations upon which they are based willoccur. By their nature, forward-looking statements involve numerousassumptions, known and unknown risks and uncertainties, both generaland specific, that contribute to the possibility that the predictions,forecasts, projections and other events contemplated by theforward-looking statements will not occur. Although Sangoma believesthat the expectations represented by such forward-looking statementsare reasonable, there can be no assurance that such expectations willprove to be correct as these expectations are inherently subject tobusiness, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results todiffer materially from those expressed in the forward-lookingstatements contained in its management's discussion and analysis andannual information form (both available on www.sedar.com ) include, but are notlimited to risks and uncertainties associated with the COVID-19pandemic, changes in exchange rate between the Canadian Dollar andother currencies, changes in technology, changes in the businessclimate, changes in the regulatory environment, the decline in theimportance of the PSTN and new competitive pressures. Theforward-looking statements contained in this press release areexpressly qualified by this cautionary statement.
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Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.
Sangoma Technologies Corporation
David Moore
Chief Financial Officer
(905) 474-1990 Ext. 4107
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