05:29 PM EST, 02/05/2025 (MT Newswires) -- Sangoma Technologies ( SANG ) was last seen down 3.8% in after hours Nasdaq trading as it reported a loss for the fiscal second quarter, albeit narrower than in the year earlier period, and lowered its revenue forecast for 2025.

The telecom equipment and technologies company said its net loss narrowed significantly to US$1.9 million compared to US$3.2 million in the quarter ended Dec.31 Per share results were not disclosed.

Revenue of US$59.1 million declined US$1.0 million 1.7% from the first quarter of fiscal 2025, primarily due to a US$1.2 million decrease in low margin third-party product resales, while in total, core platform products and services revenue increased sequentially.

On guidance, Sangoma said it is "taking decisive action" to advance its core platform strategy by accelerating strategic alternatives with respect to certain low margin non-core product lines including its third-party hardware resale operations. It said this strategic realignment, while reducing projected revenue in fiscal 2025, should drive substantial improvements in both gross profit margin and Adjusted EBITDA margin.

As a result of the de-emphasis of certain non-core product lines, Sangoma is lowering its revenue guidance from the range of US$250 million to US$260 million to US$235 million to US$240 million, while continuing to maintain an Adjusted EBITDA target of at least 17% of revenue. As a result of the updated revenue expectations, the company now anticipates Adjusted EBITDA in the range of US$4 million to US$42 million, compared to the prior guidance of US$42 million to US$46 million.

"During the second quarter we continued to generate strong operating cash flow while reducing debt levels, effectively reaching our fiscal year-end debt target of $55-60 million two quarters ahead of plan," said Charles Salameh, Chief Executive Officer. "Our improved capital structure allows us to take decisive action to accelerate strategic alternatives which will further solidify our position as a highly profitable recurring revenue driven business, and enable faster innovation through both internal development and acquisitions."

The company's shares were last seen down US$0.28 to US$7.02 after hours. They closed down $0.15 to $10.35 on the Toronto Stock Exchange.