Tickers: XTSX:STC, PINX:SAMOF
Tags: #Telecommunications
Fourth quarter sales are expected to be approximately $30.1 million and revenue for the full year of 2019 will be over $109 million, almost double that of fiscal 2018
MARKHAM, ONTARIO - TheNewswire - August 1, 2019 - Sangoma Technologies Corporation (TSXV: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 preliminary unaudited revenue for the fourth quarter of fiscal 2019 ended June 30, 2019.
Sales for the fourth quarter of fiscal 2019 are expected to be approximately $30.1 million, more than 70% above the same quarter last year. Revenue for the full year of fiscal 2019 is expected to be over $109 million, almost twice that of fiscal 2018 and above prior guidance for the year.
"Many of our shareholders seek information about our fourth quarter, before the full audit cycle is completed", noted David Moore, Sangoma's Chief Financial Officer. "This release of expected revenue is a way for us to accelerate disclosure on the top line, given Sangoma will announce our full financial results in October as usual, after the completion of our annual audit. At that point, we will hold a conference call with investors to discuss the results in detail."
"I am very proud of our results this year and pleased that we have finished on a very strong note", said Bill Wignall, President and CEO of Sangoma. "Sales have continued to grow to the point where we've exceeded $30 million in quarterly revenue for the first time, assisted by a significant one-time order this quarter. We are now officially a $100 million revenue company, EBITDA is expanding nicely as expected, our recurring revenue is at an all time high, and we successfully closed the transformative acquisition of Digium in fiscal 2019. I look forward to sharing full fiscal 2019 results with our shareholders in a few months once our audit is complete, at which time we will provide guidance on fiscal 2020. We remind investors of the typical seasonality that we see in our first quarter, the one where revenue is usually lower than the prior year's fourth quarter, due to the softer summer period."
In addition, Sangoma is pleased to announce that it has appointed Gateway Investor Relations (formerly Liolios), a leading strategic financial communications and capital markets advisory firm, to provide investor relations and consulting services.
Gateway is a U.S.-based investor relations firm specializing in advising public companies across a broad range of industry classifications. Founded in 1999, the firm provides high-level capital markets consulting, corporate communications, and investor and analyst outreach. The firm is also specifically experienced in helping Canadian companies access and navigate the U.S. capital markets.
Under the terms of the engagement, Sangoma will compensate Gateway USD$8,000 per month, with an initial three (3) month term, which converts to a month-to-month agreement beyond the initial term. No common shares or securities convertible into common shares are being offered to Gateway as part of the engagement.
About Sangoma Technologies Corporation
Sangoma Technologies is a trusted leader in delivering Unified Communications solutions for SMBs, Enterprises, OEMs, Carriers and service providers. Sangoma's globally, scalable offerings include both on-premises and cloud-based phone systems, telephony services and industry leading Voice-Over-IP solutions, which together provide seamless connectivity between traditional infrastructure and new technologies. Sangoma's products and services are used in leading PBX, IVR, contact center, carrier networks and data-communication applications worldwide. Businesses can achieve enhanced levels of collaboration, productivity and ROI with Sangoma. Everything Connects, Connect with Sangoma!
Founded in 1984, Sangoma Technologies Corporation is publicly traded on the TSX Venture Exchange (TSX VENTURE: STC). Additional information on Sangoma can be found at: www.sangoma.com.
Cautionary Statement Regarding Forward 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 limited to, statements concerning estimates of future revenue, expected expenditures, expected future production and cash flows, and other statements which are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should" and similar expressions indicate forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements are based on the opinions and estimates of management on the date that the statements are made and involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur or will differ materially from those expected. Although Sangoma believes that the expectations represented by such forward-looking statements are reasonable based on the current business environment, there can be no assurance that such expectations will prove to be correct as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in the management's discussion and analysis include, but are not limited to changes in exchange rate between the Canadian Dollar and other currencies, the variability of sales between one reporting period and the next, changes in technology, changes in the business climate in one or more of the countries that Sangoma operates in, changes in the regulatory environment, the rate of adoption of the company's products in new markets, the decline in the importance of the PSTN and new competitive pressures. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and Sangoma undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by law.
Readers are directed to Sangoma's filings on SEDAR with respect to Management's Discussion and Analysis of Financial Results for the basis of Sangoma's reconciliation of EBITDA to net income as calculated under IFRS
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Sangoma Technologies Corporation
David Moore
Chief Financial Officer
(905) 474-1990 Ext. 4107
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