On October 20 Sangoma Technology (STC) released it's Q4 and annual report and it did not fail to please it's shareholders.Annual revenues were up 20% to $131 million and EBITDA was up to $22 million which was a STC record.It also gave guidance for the next fiscal year.
Annual Highlights
Sangoma Technology had a good year.Probably the biggest highlight was an $80 million equity issue which is phenomenal for a company that had a market capitalization of less than $300 million at the time.This shows tremenduous investor confidence.And STC did not let it's shareholders down.Annual revenue was a record at $131 million;EBITDA exceeded guidance at $21.6 million or up 75%.Net income,at $4 million was double that of 2019.
STC gives guidance for 2021 revenues of $143-$147 million.EBITDA,they say, will be between $24-$26 million.Sangoma will be consolidating all the changes and mergers made in 2018 and 2019. 
What About the Cash?
Sangoma says that it has a cash balance of $27 million.This is just a little more than their working capital needs.But they also report that they still have $76 million proceeds left from their $80 million equity issue.STC gives guidance for next year of $143-$147 million revenue and adjusted EBITDA of $24-$26 million.Both figures are about 10% ahead of this year.This is steady growth but investors are looking for sales growth similar to this year (16%).At the same time this blog sees that Sangoma needs time to consolidate properly it's recent acquisitions.So as to make their operation run smoothly.But it has enough cash to both invest in improvements in their present operation and put money into future growth.This blog suggests that it take a significant stake in Counterpath Solutions which only has a market capitalization of $27 million.It can run as a separate independent operation with more STC cash used for working capital.At the same time this covers Sangoma eventually moving into software to accompany their primarily hardware operation (with some software sales).
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