MARKHAM, ONTARIO -- (Marketwire) -- 02/25/13 -- Sangoma Technologies Corporation (TSX VENTURE: STC), a leading provider of hardware and software components that enable or enhance IP Communications Systems for both voice and data, today announced highlights of its unaudited consolidated interim financial statements under IFRS for the second quarter of fiscal 2013, ended December 31, 2012.
Sales for the second quarter of fiscal 2013 were $2.8 million, down from $3.0 million in the immediately preceding quarter and from $3.4 million in the same quarter last year.
"After producing consistent revenue growth almost every quarter for the past couple of years, and many quarters with all-time record revenues, it is not surprising that Sangoma will experience periodic down quarters, especially given the global economy and conditions in our industry," said Bill Wignall, President and CEO of Sangoma. "Nevertheless, I am indeed disappointed in this quarter's result. We have been investing in R&D to deliver new product innovation, which has worked extremely well, and in marketing and sales to bring us closer to existing and new customer segments. In spite of many of our competitors showing declining revenue over the past year or two, I have been pleased with Sangoma's sales growth over the past eight quarters, and therefore I'm definitely not satisfied with our second quarter sales. We know that our revenue is lumpier these days than in Sangoma's past, since we now win larger customers essential to our growth, and this lumpiness has impacted us this quarter. Larger customers placing larger orders leads naturally to longer sales cycles, and certain significant orders that we expected in Q2 did not materialize in the quarter. We remain optimistic that this was a timing anomaly, since we now believe that at least one of these will close in our third quarter and we of course continue to work hard on other new opportunities in this quarter. It is clear that we have to do even more to accelerate the increased sale of recently introduced new products to new customers, and the whole team is focused on exactly that. With this in mind, we have added a new sales executive to provide us with extra experience and attention on the carrier customer segment. A single quarter does not change Sangoma's strategy. We continue to strive for growth by transitioning away from relying on TDM products and into a company that can offer both legacy and the pure-IP solutions of tomorrow. We have seen the benefits of a focused R&D program and roadmap in the launch of many new exciting products over the past year or so, and we are confident that Sangoma can deliver the same success in sales over time."
---------------------------------------------------------------------------- Q2 Q1 Q2 FY2013 FY2013 Change FY2012 ChangeSales $ 2.8 m $ 3.0 m (7%) $ 3.4 m (18%)Gross profit $ 1.9 m $ 2.2 m (14%) $ 2.5 m (24%)Operating Expense $ 2.2 m $ 2.2 m 0% $ 2.3 m (4%)Operating Income(1) $ -0.3 m $ 0.0 m $ 0.2 mNet income $ -0.3 m $ 0.0 m $ 0.2 mNet earnings per share (fully diluted) $ (0.009) $ 0.000 $ 0.006EBITDA(1) $ -0.2 m $ 0.1 m $ 0.3 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.
