STC Sangoma Technologies Corporation

Sangoma Technologies Corporation (TSXV: STC), a trusted leader in delivering cloud-based Communications as a Service (“CaaS”) solutions, today provided a further update regarding its ongoing investigation into the data breach announced on December 24, 2020.

Sangoma has not experienced any service interruptions or outages as a result of the cyber attack that targeted the Company, and all customers continue to use the full suite of Sangoma’s products and services, normally. In addition to the Company’s own investigation, a highly experienced team of third-party cybersecurity experts has to date, uncovered no indication of security threats related to the cyber attack that could create any additional risk for Sangoma’s customers from using our products, nor any evidence to suggest that any intellectual property has been compromised.

“While this cyber attack has admittedly created a significant amount of work for us, the most important thing I’d like to stress to our investors is that our underlying business has not changed at all and remains strong,” said Bill Wignall, President and CEO of Sangoma. “We continue to receive and process orders normally, our existing customers continue to use our products without interruption, we continue to win new subscribers as usual, we’re still building out our CaaS cloud solutions and there has been no change in our support to our clients. Importantly, we have seen no discernible impact on order flow since December 24, and as a result, we currently do not expect that the cyber attack will have any material impact on sales or on opportunities in our pipeline.”

Mr. Wignall continued: “Our Company remains focused on delivering sustainable growth and profit while executing on the exciting acquisition opportunities in front of us. Of course, we continue to work with urgency to complete our investigation into this incident, and we’ve taken numerous actions to support those whose information was compromised in the resulting data breach. I’m highly confident that Sangoma will emerge from this incident stronger than ever, and I look forward to providing a detailed update when we report our second-quarter results next month.”

As described in the news release of December 29, Sangoma’s investigation has confirmed that the attackers encrypted, copied, and published a significant number of confidential files relating to the Company’s financial information, its corporate development efforts, certain private employee data, as well as some customer information and ordering history. There continues to be no evidence that the compromised customer information includes bank account or payment card data.

Sangoma has taken immediate action to mitigate and manage the impact of this attack. In addition to retaining a team of third-party cybersecurity experts to assist its investigation, the Company has filed a report with law enforcement officials and deployed additional security measures to assist in detecting and preventing any future attempts or incidents of unauthorized access to or malicious activity on its corporate network. Further, the Company has updated its employees regularly regarding the incident and the possible impact on the security of their personal data, has provided them with actions they can take to protect their personal information from misuse, and is rolling out 24 months of credit and dark-web monitoring and identity theft insurance at the Company’s expense. Finally, Sangoma has been in proactive contact with our customers (as well as other third parties whose data was compromised), to provide clear information as well as appropriate support, and will continue to do so.

Mr. Wignall concluded: “I’d like to thank our customers, employees, partners and shareholders for their patience and support throughout this stressful time. We have received inquiries from a few investors seeking an update on the ransomware attack, and we felt this approach would ensure all stakeholders receive the same information, at the same time. Sangoma will remain as responsive as ever and we will continue providing factual, accurate information as it becomes available and appropriate to share, during our ongoing investigation.”

About Sangoma Technologies Corporation

Sangoma Technologies is a trusted leader in delivering value-based Communications as a Service (CaaS) solutions for businesses of all sizes. Sangoma’s cloud-based Services include Unified Communication (UCaaS) business communications, Meetings as a Service (MaaS), Communications Platform as a Service (CPaaS), Trunking as a Service (TaaS), Fax as a Service (FaaS), Device as a Service (DaaS), and Access Control as a Service (ACaaS). In addition, Sangoma offers a full line of communications Products, including premise-based UC systems, a full line of deskphones and headsets, and a complete connectivity suite (gateways/SBCs/telephony cards). Sangoma’s products and services are used in leading UC, PBX, IVR, contact center, carrier networks, office productivity, and data communication applications worldwide. Sangoma is also the primary developer and sponsor of Asterisk and FreePBX, the world’s two most widely used open source communication software projects.

Sangoma Technologies Corporation is publicly traded on the TSX Venture Exchange (TSX VENTURE: STC). Additional information on Sangoma can be found at: www.sangoma.com.

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements, including statements regarding the ongoing investigations into and actions being undertaken in response to the cyber attack, the anticipated impact of the cyber attack on our products and services, the future success of our business, development strategies and future opportunities. Forward-looking statements include, but are not limited to, statements concerning estimates of future revenue, expected expenditures, expected future production and cash flows, and other statements which are not historical facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions indicate forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. By their nature, forward-looking statements are based on the opinions and estimates of management on the date that the statements are made and involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur or will differ materially from those expected. Such risks and uncertainties include but are not limited to: (i) the outcome of our ongoing investigation, including our discovery of additional information relating to the attack and resulting data breach, (ii) the potential loss of stakeholder confidence in Sangoma’s ability to protect their information because of the attack, and the adverse impact such loss of confidence may have on sales, (iii) costs related to our investigation and any resulting liabilities, (iv) our ability to recover any proceeds under our insurance policies, (v) costs related to and the effectiveness of our mitigation and remediation efforts. Although Sangoma believes that the expectations represented by such forward-looking statements are reasonable based on the current business environment, there can be no assurance that such expectations will prove to be correct as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in the management’s discussion and analysis include, but are not limited to changes in exchange rate between the Canadian Dollar and other currencies, the variability of sales between one reporting period and the next, changes in technology, changes in the business climate in one or more of the countries that Sangoma operates in, changes in the regulatory environment, the rate of adoption of the Company’s products in new markets, the decline in the importance of the PSTN and new competitive pressures. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and Sangoma undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by law. Readers are directed to Sangoma’s filings on SEDAR with respect to Management’s Discussion and Analysis of Financial Results for the basis of Sangoma’s reconciliation of EBITDA to net income as calculated under IFRS.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Sangoma Technologies Corporation

Sangoma Technologies Corporation
David Moore
Chief Financial Officer
(905) 474-1990 Ext. 4107
dsmoore@sangoma.com 

Provident Communications
Morgan McLellan
647-802-4825