Sangoma Continues Solid Revenue Growth in 4Q 2011

For Sangoma Technologies (News - Alert), third time’s a charm as the leading provider of hardware and software components for IP communications systems experienced its highest level of sales revenue ever in its fourth quarter of 2011.

Revenue results show that Sangoma sales for 4Q 2011 ended June 30, 2011 were $3.25 million, up 4 percent from $3.12 million for 3Q 2011. With a 29 percent increase in revenue since the company’s first quarter of 2011, which produced $2.51 million, this is Sangoma’s third quarter to see consistent revenue growth this year.

The company also said that 4Q revenues increased by 6 percent from 3Q 2011 sales and from the same quarter in 2010. However, due to its lackluster revenue performance in 1Q this year, annual revenue for the fiscal year down-sloped 5 percent from 2010, coming in at $11.86 million.

Meanwhile, this quarter’s gross margins of 75 percent edged up 2 percent above 3Q 2011, and 4 percent above that for the quarter ended June 30, 2010.

As for operating expenses, Sangoma gets a gold star, as the company saw a 16 percent uptick from 3Q ended March 31, 2011. Company officials attribute this to a boost in development cost amortization following heightened spending in fiscal year 2010, as well as increased investments in sales and marketing in preparation for robust sales in future quarters.

Operating expenses, not including one-time, non-cash expenses, for the fiscal year 2011 rolled in at $2.49 million, 20 percent higher from its previous $6.26 million from 2011, also driven by higher development cost amortization, ramped up sales and marketing investments, and loftier foreign exchange costs.

While it may be only a small spot on the company’s revenue growth chart over the years, its remarkable growth of 162 percent during 2006 to 2010 landed Sangoma Technologies Corporation on Deloitte’s (News - Alert) Technology Fast 500 list for 2011, as reported by TMCnet.

Sangoma’s spot on the list, according to company officials, is also much in accordance with the company’s recent transformation from a company that previously specialized in TDM Telephony Interface boards to a provider of compelling solutions for the IP communications space.

"Sangoma had remarkable revenue growth rates as we came to prominence providing TDM Interface Boards for the Telephony Market,” Bill Wignall, chief executive officer of Sangoma, said in a statement. “Over the past year, we have truly re-built the company, refocusing our efforts on innovation, new product development, marketing and sales, and our distribution partners and customers. We are now starting to see the results and this recognition from Deloitte is another marker on our road to success."

Tammy Wolf is a TMCnet web editor. She covers a wide range of topics, including IP communications and information technology. To read more of her articles, please visit her columnist page.

Edited by Stefanie Mosca