Sangoma Technologies Corp (NASDAQ:SANG),  a trusted leader in delivering cloud-based Communications as a Service solutions for companies of all sizes, stock fell 12.73% (As on September 28, 10:51:14 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the fourth quarter of FY 23. Sangoma continues to maintain a healthy balance sheet, finishing the quarter and the fiscal year with net cash provided by operating activities of $10,855 and $26,487, respectively on June 30, 2023, reflecting a strong quarterly progression of cash flow throughout fiscal 2023. Sangoma continues to remain comfortably within its debt covenants. Operating expenses were $175.74 million for the fiscal year, up from $162.77 million last year by about 8%, and $43.71 million for the quarter, down from $45.71 million in the same quarter last year by about 4%. The year over year increase reflects the addition of the NetFortris team while the quarter over quarter decrease reflects the realization of various cost initiatives. Net loss for the fourth quarter was $23.63 million, and for the year was $29.03 million, both significantly affected by a one-time, non-cash goodwill impairment charge of $22.51 million. This goodwill impairment resulted primarily from, among other factors, a significant increase in the discount rate as a result of macroeconomic factors, which other companies in the industry sector have also experienced, during the latter months of fiscal 2023.

SANG in the fourth quarter of FY 23 has reported the adjusted loss per share of 4 cents, beating the analysts’ estimates for the adjusted loss per share of 5 cents, according to the Zacks Consensus Estimate. The company had reported 4 percent decline in the adjusted revenue to $63.68 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by 1.76%. Services represented 79% of the total sales this quarter, up from 74% in the same quarter of last year and we remain committed to delivering strong organic growth going forward. Adjusted EBITDA for the quarter of $10.86 million, representing about 17% of revenue, again demonstrating the dedication to deliver results with profitability.

The Company will be suspending the issuance of forward-looking earnings guidance for fiscal 2024. This decision comes as part of a strategic transformation led by the Company’s new CEO, Charles Salameh to position Sangoma for long-term success and sustainable growth.