The Investorfile blog first took notice of Sangoma Technologies Corp. (TSXV: STC - C$0.71) at C$0.21 per share over three years ago (See: Sangoma Technologies: A small cap tech stock trading for value with prospects of growth). Just three months ago we took notice again with the shares trading at C$0.43 (See: Sangoma Technologies’ stock price has room to double again).Today the stock trades at C$0.71, up 240% since we first recommended Sangoma Technologies to our list of Top Ideas. Based on recent financial trends, we remain bullish as ever on the Company and its stock as a small cap investment opportunity.

Sangoma Technologies delivers Unified Communications solutions for SMBs, Enterprises, OEMs, Carriers and service providers. The Company’s scalable offerings include both on-premises and cloud-based phone systems, telephony services and industry-leading Voice-Over-IP solutions which, together, provide seamless connectivity between traditional infrastructure and new technologies. Sangoma's products and services are used in leading PBX, IVR, contact centre, carrier networks and data communication applications worldwide.

The biggest growth engine is Sangoma’s Software as a Service (SaaS) and Cloud-based services, as a provider of Unified Communications solutions that earns predictable recurring streams of revenues. Unified Communications (UC) has become the buzz word for an emerging market in the telecommunications industry, which implies the integration between modes of communications like text messages, cell phone, emails, conference calls, instant messaging, screen sharing etc., as well as being able to switch effortlessly between them to enhance the exchange of information and ideas for a business operation.

Last week Sangoma Technologies released its Q3 results for fiscal 2017. In Q3, Sangoma reported that quarterly revenues jumped 29% to C$6.81 million. This was the ninth quarter in a row that the Company has grown its revenues significantly and consistently over the same quarter in the prior year. Both EBITDA (10.7% of revenues) and net earnings are up considerably, too. Earnings per share in the quarter doubled.

Most interestingly in the Q3 report was the Company’s earnings guidance for Fiscal 2017. Sangoma’s Management stated that the previous annual revenue guidance of C$25 million and EBITDA of C$2.4 million will now be exceeded. Fiscal 2017 ends on June 30.

Despite the stock's recent performance, the share price still trades at a multiple that is less than one times revenues based on Management’s financial guidance. Given that the Company is growing and profitable, Sangoma’s stock price is still notably undervalued. That said, the stock should begin to attract new investors throughout the balance of 2017 which could reward its current shareholders with ample share price appreciation.

If you don’t own Sangoma’s stock yet it may be time to do so.

Sangoma Technologies maintains a strong balance sheet with a healthy net cash position.