Sangoma Announces Promising Revenue in First Fiscal Quarter 2012

The first quarter of 2012, ended Sept. 30, 2011 provided a positive outlook for IP telephony solutions provider, Sangoma Technologies (News - Alert) Corporation. The company has announced the highlights of this unaudited timeframe, highlighting a 20 percent increase in sales from the same time period the year before.

"This is a very positive sign," said Bill Wignall, President and CEO of Sangoma, in a statement. "Delivering year over year growth of 20 percent is really excellent for our industry, especially during these extremely uncertain economic times. We believe that our new focus on growth, new corporate strategy, new product portfolio and new management team is beginning to bear fruit. The reaction of our customers, as well as our OEM and distribution partners around the world, to these changes is quite promising."

With the 20 percent increase for this quarter, the IP PBX component company returned a promising $3.01 million in sales for the first quarter of fiscal 2012. Gross margins were reported at $2.19 million for the quarter, representing approximately 73 percent of revenue, in line with margins reported in the first quarter of fiscal 2011.

Operating expenses were reported at 21 percent lower than the first quarter of fiscal 2011, settling at $1.38 million for 2012. The company points to the large $0.71 million swing in foreign exchange from a loss of $0.15 million in the same quarter from the previous year to drive a gain of $0.56 million. Without the foreign exchange calculation, expenses increased by 22 percent, reflecting the increase in sales and marketing investments made by the company.

Sangoma also increased its focus in Research & Development, as well as investments in newly acquired VegaStream operations, adding to its expense line. Operating income, however, had a nice jump at 125 percent to reach $0.81 million for the first fiscal quarter. The immediate preceding quarter was $0.36 million, while the same quarter in 2011 was $0.08 million, representing a 912 percent increase year over year.

David Moore (News - Alert), Sangoma's Chief Financial Officer added, "We hope to see our underlying revenue grow throughout the year, from our first fiscal quarter through our fourth fiscal quarter, as we did in fiscal 2011. And then in most years we would anticipate a modest decline in sales from our fourth quarter to our first quarter in the following year due to summer seasonality especially in Europe.

“Typically we look for first quarter sales to be well above our revenue in the same period of the prior year. That is precisely what we're seeing this quarter, with a solid performance of 20 percent growth versus our first quarter last year, and a slight decline from last quarter of about 7 percent," added Moore.

A company heavily involved with the Asterisk open source market, Sangoma also enjoyed net income for the fiscal first quarter of 2012 of $0.47 million, compared with $0.04 million for the same quarter in the previous year. Before taxes, earnings were up from $0.49 million in the previous quarter to hit $0.93 million for the first quarter fiscal 2012. A year over year gain was also realized as earnings for the first quarter for fiscal 2011 was reported at $0.21 million.

 

Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.

Edited by Stefania Viscusi