Sangoma earns $250,000 in fiscal 2015
2015-10-22 18:24 ET - News Release
Mr. David Moore reports
SANGOMA REPORTS Q4 AND ANNUAL RESULTS FOR FISCAL 2015
Sangoma Technologies Corp. has released highlights of its fourth quarter financial results and audited consolidated financial statements for the full year of fiscal 2015, ended June 30, 2015.
For the fourth quarter of fiscal 2015, sales were $5.34 million, 34% higher than the same quarter last year and 11% over the immediately preceding third quarter this year. For the full year of fiscal 2015, revenue was $16.32 million, the highest in Sangoma’s history and 18% above that in the prior year. EBITDA was $1.64 million for the year, up from $1.3 million last year, and operating income was over $0.9 million, consistent with 2014.
“I am pleased to see our financial year close with quarterly sales above $5 million for the first time,” said Bill Wignall, President and CEO of Sangoma. “We continue to seek growth through a mix of organic and inorganic means, all while demanding reasonable profitability. This year we see the results of that strategy, with prudent growth driven by some insightful M&A activity, solid margins, and EBITDA at approximately 10% of revenue. During this challenging economic environment, when multiple competitors are struggling and our traditional business continues to exhibit softness, I’m satisfied with these results and very pleased with this year’s acquisitions, though management maintains its pursuit of further growth. Looking back on 2015 overall, I would like to acknowledge the new teams for their excellent contribution and to personally thank our customers for their loyalty, our employees for their incredibly hard work, and our investors for their support.”
Q4 FY2015 Q4 FY2014 Change FY2015 FY2014 Change
Sales $ 5.34 m $ 3.98 m 34% $ 16.32 m $ 13.83 m 18%
Gross profit $ 3.57 m $ 2.65 m 35% $ 10.97 m $ 9.25 m 19%
Operating Expense $ 3.07 m $ 2.04 m 50% $ 10.04 m $ 8.31 m 21%
Income(1) $ 0.50 m $ 0.61 m $ 0.93 m $ 0.94 m
Net income $ 0.15 m $ 0.52 m $ 0.25 m $ 0.74 m
Net earnings per
diluted) $ 0.005 $ 0.018 $ 0.008 $ 0.026
EBITDA(1) $ 0.75 m $ 0.54 m $ 1.64 m $ 1.30 m
Gross profit was $3.57 million for the quarter and $10.97 million for the year. Gross margin at 67% for both the quarter and year has remained stable and is essentially the same as fiscal 2014.
Operating expense for the fourth quarter was $3.07 million, 50% higher than the same quarter in fiscal 2014 and expense for the year at $10.04 million was 21% higher than in 2014, before one-time impacts. The higher expenses result primarily from the addition of staff and other spending in the companies acquired on January 1, 2015.
EBITDA was $1.64 million for fiscal 2015, up from $1.30 million in the prior year, and was $0.75 million in the fourth quarter compared to $0.54 million in the same quarter of 2014. Operating income in the fourth quarter was $0.50 million, down from $0.61 million in the fourth quarter of 2014, and for the fiscal year was a $0.93 million, consistent with fiscal 2014.
Net income for the year ended June 30, 2015 was $0.25 million ($0.008 per share fully diluted), compared to a net profit of $0.74 million ($0.026 per share fully diluted) for the year ended June 30, 2014. In fiscal 2015 $0.30 million was recorded for the one-time costs associated with the two acquisitions undertaken on January 1, 2015. There were no comparable costs in fiscal 2014.
Sangoma finished the year with a cash balance of $2.52 million, down $2.46 million for the year, and had working capital of $6.36 million on June 30, 2015, as compared to $11.35 million on June 30, 2014. After accounting for the acquisitions, Sangoma generated $0.86 million in operating cash flow for the year.
President and CEO, Bill Wignall, and CFO, David Moore will host a conference call on Tuesday October 27, 2015 at 12 noon 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.