Sangoma Technologies Corp T.STC

Q3

[Captain71]

Was hoping someone else would comment first.

Revenue looked great again but easy to figure out I’m disappointed due to the negative net income.

What do you folks who don’t factor in net income think of the report and outlook?

GLTA

[gwimmer]

To be disppointed by the negative Net Income is fine but one must ask why the negative net income and you maybe less disppointed with out going into all the details the accounting of intangables and one time transactional costs.  

[profitprophet1]

There are two things (at least) to mention. All the costs associated with the most recent acquisition are expensed this quarter without any of the benefits yet. And they continue to have non-cash expenses such as goodwill depreciation from the previous acquisitions. Judging by the backlog and the continued increase in the business the "goodwill toward Sangoma" is anything but impaired

[Torontojay]

  Believe it or not, this used to be a Benjamin Graham net net stock. The company has come a long way.   

[masfortuna]

Bang on mate.  That's why I am still here. I am hoping that this is mostly growing pains.

[Captain71]

Thanks for all the input folks. We are on the back of what most of you feel is a good report and our gains are less than the market in general. What is wrong here??? GLTA

[profitprophet1]

A number of things  it's a small cap war in Ukraine inflation your time horizon may be too short, so you're fretting the day to day moves This one went down to 1.25 (precon) in Mar 2020 and then went right back up. This one will see its time.

[profitprophet1]

And of course fear of recession, and supply change woes. Despite all these, the traditionally conservative management have raised guidance.

[masfortuna]

Yes I saw that. They usually beat so to raise the guidance is very positive. Anyhow I liked what I saw when I first invested and I still like the actual company.  What I don't like is the sp BUT hopefully that will improve soon (as in 6-12 months)

[Captain71]

Anyone can understand the SP dropping when the market is dropping. Can't undertstand why this one in particular is underperforming so bad. From $38 down to under $12, brutal. I guessing by the performance today the market was not too impresses with the Q3 report. Some analysts are calling for a bear market ralley, hopefully we participate. BTW I too liked what I saw when I first invested

[masfortuna]

YUP!  And that's mu issue.  I know that some post negative comments in an attempt to bash the stock but that is counter productive if you own the stock.  It wouldn't make any sense. My comments are based on the fact that we are a tech company and this sector is out of favour at the moment BUT we are doing "ok" number wise so we shouldn't be trading like a

[Capharnaum]

I think for SaaS the measure is EBITDA and cashflows since customers tend to be sticky and revenue should increase faster than costs in time. I thought the report was in line with the guidance. Considering the weakness in the share price, I think that the stock was trading for a lower revised guidance. Imo, the value of the business should be higher on EBITDA basis.