Sangoma Technologies Posts Record Quarterly Revenue Numbers

IP communications specialist Sangoma Technologies (News - Alert) posted record revenues of $3.43 million for its second fiscal quarter ending in December, powered mostly by new marketing, sales and product development initiatives.

The strong revenue numbers were around 15 percent higher than both the same period in 2010 and the first fiscal quarter of 2012, when the company booked $3.01 million worth of sales.

Gross profit increased nine percent on the quarter and 15 percent year-over-year, rising from $2.19 million to $2.51 million – or 73 percent of total revenue.

"Delivering a quarter with 15 percent growth over the same quarter in the previous year is another very positive sign that our new strategy at Sangoma is working," Bill Wignall, President and CEO of Sangoma, noted in a statement. "Our focus on R&D to drive innovation and new product launches, as well as on marketing and sales to increase awareness and expand our geographic presence, is continuing to deliver solid revenue growth. It is especially gratifying to see significant revenue from new products such as our SS7 and Vega gateways, including sales through channels we obtained as part of the VegaStream acquisition, further evidence of both product and sales synergies from that transaction."

Operating expenses rose 23 percent compared to the second fiscal quarter of 2011, which Sangoma attributes mostly to its aggressive sales push and new product launches. In addition, Q2 was the first full quarter that operating expenses were derived from the VegaStream acquisition. Operating expenses were up 68 percent from the previous quarter, but Sangoma says that $700,000 of the $900,000 difference was due to an abrupt swing in foreign exchange expenses.

Net income fell from $0.31 million last year to $0.17 million for the second fiscal quarter of 2012. Earnings before interest, taxes, depreciation and amortization also dropped from $0.55 million to $0.33 million during the same period. Operating income was $0.19 million, down from $0.41 million in the second fiscal quarter of 2011.

Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves