Canada Sangoma Reports Tender

Annual Revenue Grows by 20 while EBITDA Expands 75 to over 21 millionSangoma Technologies Corporationa trusted leader in delivering cloud-based Communications as aService CaaS solutions for companies of all sizes today announced highlights of itsfourth quarter financial results and audited consolidated financial statements for the fiscalyear ended June 30 2020.Sangomas annual revenue was a record 131.4 million 20 higher than in fiscal 2019with fourth quarter sales up by 16 year-over-year as well. EBITDA exceeded guidanceand was also a record at 21.6 million in fiscal 2020 up 75 from last year.Operating Income and EBITDA are metrics used by the Company to monitor its performance and the definitions may be found in the accompanying MDA posted today at www.sedar.com.I am extremely pleased with the way Sangoma performed this year especially given how very challenging it has been for everyone during the COVID-19 crisis said Bill Wignall President and CEO of Sangoma. It is truly gratifying to see the resilience of the business during times like these by delivering a year with 20 revenue growth and with EBITDA expanding 75 to over 20 million for the first time. While our fourth quarter revenue was slightly softer than our record third quarter as expected due to the COVID-19 shutdowns that is mostly in Product sales and its good to see Services revenue holding up once again exceeding half our sales. Sangoma enters fiscal 2021 with a talented team a robust business model a broadening suite of cloud services a very strong balance sheet and a healthy acquisition pipeline. There is a lot to be proud of at Sangoma and Id particularly like to thank our staff for their strength and commitment during this really difficult year. And Id also like to express our gratitude to our customers and investors for the ongoing trust they put in Sangoma every day.Gross profit was 84.9 million in fiscal 2020 producing gross margin at 65 of revenuefor the year about 4 percentage points better than in 2019.Operating expenses were 74.8 million in 2020 up 25 from fiscal 2019 reflecting theadditional expense consistent with the revenue growth.EBITDA exceeded 16 of revenue this year and at 21.6 million for fiscal 2020 was upfrom 12.3 million in the prior year and above the top end of guidance.Net income for the year ended June 30 2020 was 3.9 million more than double that offiscal 2019.Sangoma continues to maintain a strong balance sheet and finished the fiscal year with acash balance of 27.2 million which was further supplemented by the 75.6 millionequity raise net of costs completed in July subsequent to year-end. Working capitalclosed at 4.9 million as of June 30 and Adjusted Cash Flow from operations at 15.0million for the year was comfortably above the 13.5 million generated in fiscal 2019.Outlook for fiscal year 2021While there continues to be uncertainty regarding the ongoing impact of COVID-19 onbusiness Sangoma has taken multiple steps in an attempt to appropriately respond to thatimpact. As we committed to in our Business Update of August 13 Sangoma is todayissuing guidance for its fiscal year 2021 that started on July 1 2020. Revenue isexpected to be between 143 and 147 million and EBITDA is expected to be between24 and 26 million for the year.