SANGOMA Releases Results For The First Quarter Of FIscal 2019.
Press Release:
Quarterly Revenue up 81% and Earnings before interest, tax, depreciation and amortization (EBITDA) up 129% over last year.
MARKHAM, ONTARIO, November 22, 2018 – Sangoma
Technologies Corporation (TSX VENTURE:STC), a trusted leader in
delivering Unified Communications solutions, both in the cloud and
on-premises, and the provider of the two most widely used open source
communications software products in the world, today announced
highlights of its first quarter unaudited results of fiscal 2019, ended
September 30, 2018.
For the first quarter of fiscal 2019, sales were a record $21.44
million, 81% higher than the same quarter last year and 22% more than
the immediately preceding quarter. This quarter’s results include one
month of the most recently completed acquisition of Digium, which closed
in September.
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.
“This is the first time in our history in which we have exceeded $20
million in quarterly revenue, and it’s great to see the contribution
from Digium on our top line right away”, said Bill Wignall, President
and CEO of Sangoma. “The integration work unfolded pretty much as
planned during our first quarter and the management teams are jointly
working through expected savings during the second quarter, all of which
is proceeding well. I’m pleased to see EBITDA more than doubling from
last year and at $2.5 million, the first quarter is a quick start that
puts us well on track to achieve our $10 million in guidance for the
year. We remain very excited about Sangoma’s prospects following the
Digium acquisition, and we are now even more confident in our ability to
deliver a $100 million business in 2019.”
Gross profit was $12.44 million in the first quarter of fiscal 2019
at a gross margin on 58%, a figure that is expected to increase slightly
in future quarters, as Digium results will be included for the entire
quarter.
Operating expenses were $10.63 million in the first quarter of fiscal
2019, essentially double those of the prior year as a result of the two
acquisitions completed since then.
For the first quarter of fiscal 2019 ended September 30, 2018 both
EBITDA at $2.52 million and operating income at $1.81 million were more
than double the same period of fiscal 2018.
Net loss for the first quarter ended September 30, 2018 was $1.00
million compared to net income of $0.39 million in fiscal 2018,
reflecting the estimated $2.10 million of one-time transaction costs
incurred to complete the acquisition of Digium during the quarter.
Sangoma finished the quarter with a cash balance of $5.00 million and
total debt of $24.91 million following the completion of the Digium
transaction. During the quarter adjusted cash flow from operations, to
exclude the impact of the Digium acquisition, was $1.70 million.
Outlook for fiscal year 2019
As previously communicated, Sangoma expects revenue for fiscal 2019 to
be approximately $100 million. Further the company anticipates
generating adjusted EBITDA (excluding one-time costs associated with the
Digium acquisition) of $10 million this year, with adjusted
EBITDA margins expanding to over 13% by fiscal 2020.
Conference Call
President and CEO, Bill Wignall, and CFO, David Moore will host a
conference call on Friday November 23, 2018 at 12 noon Eastern Standard
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 5 to 10 minutes before the scheduled start time and
ask to join the Sangoma call.
www.sangoma.com
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