Sangoma Technologies (US:SANG)2025-11-10 22:01Revenue Performance - Revenue for the three-month period ended September 30, 2025, was $50,818,000, a decrease of 15.5% compared to $60,150,000 in the same period of 2024[4] - For the three-month period ended September 30, 2025, total revenues were $50,818,000, a decrease of 15.5% from $60,150,000 in the same period of 2024[70] - Product revenues were $3,940,000, down 62.3% from $10,457,000 in the prior year, while service revenues decreased by 5.5% to $46,878,000 from $49,693,000[70] - Revenue from the USA was $48,338,000, a decline of 15% compared to $56,753,000 in the previous year, while revenues from other regions fell to $2,480,000 from $3,397,000[71] Profitability and Loss - Gross profit for the same period was $36,805,000, down from $41,181,000, reflecting a gross margin of 72.3%[4] - Net loss for the three months ended September 30, 2025, was $2,337,000, compared to a net loss of $1,910,000 in 2024, indicating a 22.3% increase in losses year-over-year[4] - The company reported a loss before income tax of $2,863 for the three-month period ended September 30, 2025, compared to a loss of $2,253 in 2024[35] - Basic and diluted loss per share was $0.07 for the three-month period ended September 30, 2025, compared to $0.06 in the prior year[66] Cash Flow and Liquidity - Cash and cash equivalents increased to $15,683,000 as of September 30, 2025, from $13,494,000 at the end of June 2025, representing a 16.3% increase[3] - Operating cash flow for the three months ended September 30, 2025, was $4,938,000, significantly lower than $12,127,000 in the same period of 2024, a decline of 59.3%[7] - Total accounts payable and accrued liabilities amounted to $17,350 as of September 30, 2025, with significant liquidity maintained through stringent cash flow management[25] Assets and Liabilities - Total assets decreased to $336,833,000 as of September 30, 2025, down from $346,545,000 at the end of June 2025, a decline of 2.8%[3] - Total liabilities decreased to $134,446,000 as of September 30, 2025, compared to $141,826,000 at the end of June 2025, a reduction of 5.3%[3] - Shareholders' equity as of September 30, 2025, was $251,439,000, down from $254,195,000 at the end of June 2025, a decrease of 1.1%[3] Shareholder Information - The weighted average number of shares outstanding decreased to 33,243,223 for the three months ended September 30, 2025, from 33,402,422 in the same period of 2024[5] - The total number of shares outstanding at the end of the period was 33,329,755, a decrease from 33,537,684 in the same period of 2024[48] - Share-based compensation expense for the three-month period was $529,000, down from $728,000 in the same period of 2024[58] - The company did not grant any stock options during the three-month periods ended September 30, 2025, and 2024[59] - As of September 30, 2025, the company had 363,071 stock options outstanding, with a weighted average exercise price of $15.55[60] Cost Management - The company reported a restructuring and business integration cost of $563,000 for the three-month period ended September 30, 2025[4] - The company's interest expense (net) for the three months ended September 30, 2025, was $649, a decrease from $1,378 in the same period of 2024, showing a reduction of about 53.0%[19] - The interest costs incurred to service borrowing facilities for the three-month period ended September 30, 2025, were $739, down from $1,306 in 2024[39] - The company recorded a depreciation expense of $887 for the three months ended September 30, 2025, compared to $1,085 in the same period of 2024, reflecting a decrease of approximately 18.2%[30] - For the three-month period ended September 30, 2025, the amortization expense of intangible assets was $8,172, slightly down from $8,198 in the same period of 2024[33] Strategic Initiatives - The company initiated plans for the disposal of substantially all assets and liabilities from VoIP Supply LLC as part of its strategic realignment[72] - The company completed the sale of VoIP Supply LLC to PVG Technology Holdings for a total purchase price of $4,500[74] - The transaction was recorded as a receivable on June 30, 2025, and collected during the three months ended September 30, 2025[74] - The company entered into an automatic share purchase plan (ASPP) to facilitate share repurchases during blackout periods, recording a liability of $988,000 as of September 30, 2025[53] Credit and Risk Management - The expected credit loss provision decreased to $457 as of September 30, 2025, down from $496 as of June 30, 2025, indicating improved credit risk management[22] - The company's maximum exposure to credit risk for trade receivables was $13,516 as of September 30, 2025, with a notable portion of receivables aging over 90 days[22] - A 10% fluctuation in foreign currencies would have resulted in an approximate $42 impact on total comprehensive loss as of September 30, 2025[26] Other Financial Metrics - The company's lease obligations decreased to $7,845 as of September 30, 2025, from $8,208 as of June 30, 2025, indicating effective management of lease liabilities[32] - The fair value of interest rate swap assets as of September 30, 2025, was $204, down from $295 as of June 30, 2025[44] - The net inventory carrying value decreased to $7,550 as of September 30, 2025, from $8,227 as of June 30, 2025, reflecting a reduction of approximately 8.2%[29] - The net capitalized development costs as of September 30, 2025, were $8,441, compared to $8,438 as of June 30, 2025[34]