Wow! Yes — I know we are supposed to be in a slowdown and all — but if the news that Sangoma had yet another record quarter is not enough to let you know that there are strong pockets of growth in communications then I don’t know what is.
The company’s second quarter results show annual net income growth of 66%. This as a result of record sales of $3.21 million and record net earnings of $0.96 million.
Where were these sales taking place you ask? Well consider there was positive growth in ALL geographic regions with sales outside of North America growing 84%.
What this shows me is that companies in the open source space have the potential to do very well. Sangoma has spent a good amount of time and resources generating good will in the market and they were early in developing Asterisk cards of great quality.
This strategy has paid off handsomely and orders seem to be streaming in steadily.
In addition, as I have said before — the companies who have been focusing on marketing and PR are still doing very well in this market. In fact, in my many conversations I am learning that the tech companies who have cut marketing spending these past quarters are losing share to those who haven’t stopped. I think many of these companies who are cutting will not recover their lost share.
Think I am crazy? Then explain how so many tech companies are blowing out earnings (see list below). It is apparent that customers are still spending money. Some tech execs who experienced the 2001 bust think this is a repeat. It is not. Companies are purchasing tech at a record pace and in many cases they are accelerating purchases to save money on electricity, travel and other areas of their businesses.
If you are at the intersection of any of the above trends — and actually let the world know about it — you will do well.
But getting back to Sangoma — you know from my prior interviews with David Mandelstam, the company is looking to get into the bigger market of unified communications… I am curious to know how well the company is doing in this space and hope to report more on this news soon.