Sangoma had record net earnings this past quarter which was helped by a more favorable exchange rate. The bad news — sales were $2.6 million for the quarter ended December 31, 2008 as compared to $3.07 million for the quarter ended December 31, 2007.

This is a decrease of 16%, but close to sales during the previous quarter ended September 30, 2008. Net income for this quarter after taxes was a record $1.11 million or 47% higher than net income for the corresponding quarter in 2007.

The company focuses on hot areas of the market such as open source, gateways, UC and session border control/security – which they now offer via the Paraxip acquisition.

I would have expected the top line number to be higher as there seems to be an increasing number of companies embracing open source solutions but this last quarter really saw many companies closing their pocketbooks as they took a wait and see attitude. Surprisingly, Sangoma says business in North America was the most stable and most of the decline was elsewhere. This is incredible as a year ago it was the rest of the world that vendors were focusing on as the growth rates were just so incredibly high.