Sales for the full year of Fiscal 2020 are expected to be in the upper-end of guidance and EBITDA will exceed the high-end of our $19-21 million in guidance.
MARKHAM, ONTARIO - TheNewswire - August 13, 2020 - Sangoma Technologies Corporation (TSXV:STC) (OTC:SAMOF) a trusted leader in delivering Communications as a Service solutions for businesses of all sizes, OEMs and Service Providers, today announced a preliminary update to unaudited revenue and EBITDA for its fiscal year 2020, ended June 30, 2020.
"Many of our shareholders seek information about our fiscal year, before the full audit cycle is completed", noted David Moore, Sangoma's Chief Financial Officer. "This release is a way for us to provide a business update and accelerate some high level disclosure, 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 full results in detail."
Sales for the fiscal year 2020 are expected to be at the upper end of guidance, between $131 and $132 million. EBITDA is anticipated to exceed previously announced guidance of $19-21 million, and thus is expected to be above $21 million.
"This has been an unusually challenging period globally, so I am pleased that Sangoma has delivered another strong year at the upper end of revenue guidance", said Bill Wignall, President and CEO of Sangoma. "It is reassuring to see continued momentum in the business during these difficult times, driven by sequential growth in our service revenues (with some modest softening in product sales as anticipated during the peak period of the COVID-19 impact), and EBITDA continuing to expand as well, now expected to exceed $21 million for the year. Subsequent to the end of Fiscal 2020, Sangoma raised over $80 million in gross proceeds via over-subscribed equity offering, to put the company in a strong position despite the global uncertainty. I look forward to sharing full financial results with our shareholders in a few months once our audit is complete, at which time we will provide guidance for Fiscal 2021, as normal."
As indicated previously, there continues to be uncertainty regarding the full impact, duration and pace of recovery from the COVID-19 pandemic on our operations and markets, due to the evolving nature of the virus and the global economic slowdown (including varied governmental responses which may affect our business and prospects). Despite these uncertainties, Sangoma believes it is very well equipped to weather the storm, and we have taken several proactive steps in an attempt to better manage the challenges of the COVID-19 pandemic. These include:
- Continuing to operate in as close to a 'business as normal' manner, as is possible under these conditions, because we are an "Essential Service" under most all government rulings. We are thus exempt from the forced closures that so many other businesses are subject to. We are proud to continue providing our products and services to so many customers who count upon them, during these challenging times;
- Significant work by our operations teams to ensure that Sangoma is able to maintain supply of all our products and services, uninterrupted, to our valued customers throughout the COVID-19 pandemic;
- Reopening offices around the world as local rules allow while we remain able to operate with employees at home quite effectively;
- Ensuring the company is well positioned, financially, during this crisis. Sangoma has taken prudent, proactive cost control measures as appropriate, we have maintained all principal and interest payments on existing loans, and we raised equity during July as noted, such that the Company is well positioned to continue with its acquisition strategy despite the COVID-19 pandemic. Following completion of the equity raise, we initiated the repayment of the $9.2 million on our swingline and revolver facilities.
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!
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 this press release include, but are not limited to the impact of the COVID-19 pandemic, 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 the "Risk Factors" section of our Annual Information Form, as well as those contained in our Base Shelf Prospectus and Prospectus Supplement, each of which is filed under our profile on SEDAR at www.sedar.com. Sangoma undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by law.
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Sangoma Technologies Corporation
Chief Financial Officer
(905) 474-1990 Ext. 4107
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