MILPITAS, CA / ACCESSWIRE / April 30, 2024 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft Cloud Communications Solutions provider, announced today its financial results for the second quarter ended March 31, 2024.
Second Quarter Fiscal 2024 Financial Results
Net revenue for the second quarter of fiscal 2024 was $3.4 million, compared to $3.2 million in the preceding quarter, and compared to $3.4 million in the prior year quarter;
Gross margin in the second quarter of fiscal 2024 was 61.3%, compared to 60.3% in the preceding quarter, and compared to 63.4% in the prior year quarter;
For the second quarter of fiscal 2024, GAAP net loss was ($0.2) million, or ($0.01) per share, compared with GAAP net loss of ($0.3) million, or ($0.01) per share in the preceding quarter, and compared with GAAP net loss of ($0.1) million, or ($0.01) per share in the prior year quarter;
Non-GAAP net loss for the second quarter of fiscal 2024 was ($0.07) million, or ($0.00) per share, compared with non-GAAP net loss of ($0.2) million, or ($0.01) per share, and compared with non-GAAP net income of $0.1 million, or $0.00 diluted EPS in the prior year quarter.
Jeremiah Fleming, Altigen President & CEO, commented, "We view this quarter as a pivotal moment in Altigen's business transformation. Our expenses are on a downward trajectory, and our new solutions are transitioning into the launch and monetization phases. Although there's still a lot of work to be done, the business is progressing in the right direction."
Select Financial Metrics
(in thousands, except for EPS and percentages)
Fiscal 2Q24
Fiscal 1Q24
Change
Fiscal 2Q24
Fiscal 2Q23
Change
Total Revenue
$
3,360
$
3,240
3.7
%
$
3,360
$
3,373
-0.4
%
Cloud Services
1,817
1,890
-3.9
%
1,817
1,894
-4.1
%
Services an Other
1,183
996
18.8
%
1,183
1,028
15.1
%
Legacy Products
360
354
1.7
%
360
451
-20.2
%
Software Assurance
340
342
-0.6
%
340
390
-12.8
%
Perpetual Software License
20
12
66.7
%
20
61
-67.2
%
GAAP Operating Loss
$
(241
)
$
(343
)
nm
$
(241
)
$
(131
)
nm
Operating Margin
-7.2
%
-10.6
%
-7.2
%
-3.9
%
Non-GAAP Operating Loss
$
(225
)
$
(330
)
nm
$
(225
)
$
(101
)
nm
Non-GAAP Operating Margin
-6.7
%
-10.2
%
-6.7
%
-3.0
%
GAAP Net Loss
$
(236
)
$
(346
)
nm
$
(236
)
$
(140
)
nm
GAAP Loss Per Share
$
(0.01
)
$
(0.01
)
nm
$
(0.01
)
$
(0.01
)
nm
Non-GAAP Net (Loss)/Income
$
(72
)
$
(156
)
nm
$
(72
)
$
95
-175.8
%
Non-GAAP Diluted (Loss)/Earnings Per Share
$
(0.00
)
$
(0.01
)
nm
$
(0.00
)
$
0.00
-185.3
%
Adjusted EBITDA
$
(67
)
$
(159
)
nm
$
(67
)
$
95
-170.5
%
Cash Flow from Operations
$
(294
)
$
(498
)
nm
$
(294
)
$
560
nm
Throughout this release, the use of non-GAAP financial measures is intended to provide useful information that supplements Altigen's results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measure at the end of this release.
Trended Financial Information
(in thousands, except for EPS and percentages)
Fiscal 1Q23
Fiscal 2Q23
Fiscal 3Q23
Fiscal 4Q23
Fiscal 1Q24
Fiscal 2Q24
FY2023
FY2024
Total Revenue
$
3,460
$
3,373
$
3,366
$
3,482
$
3,240
$
3,360
$
13,681
$
6,600
Cloud Services
1,822
1,894
1,957
1,983
1,890
1,817
7,656
3,707
Services and Other
1,174
1,028
999
1,100
996
1,183
4,301
2,179
Legacy Products
464
451
410
399
354
360
1,724
714
Software Assurance
424
390
384
353
342
340
1,551
682
Perpetual Software License
40
61
26
46
12
20
173
32
GAAP Operating (Loss)/Income
$
(188
)
$
(131
)
$
(147
)
$
30
$
(343
)
$
(241
)
$
(436
)
$
(584
)
Operating Margin
-5.4
%
-3.9
%
-4.4
%
0.9
%
-10.6
%
-7.2
%
-3.2
%
-8.8
%
Non-GAAP Operating (Loss)/Income
$
(156
)
$
(101
)
$
(118
)
$
58
$
(330
)
$
(225
)
$
(317
)
$
(555
)
Non-GAAP Operating Margin
-4.5
%
-3.0
%
-3.5
%
1.7
%
-10.2
%
-6.7
%
-2.3
%
-8.4
%
GAAP Net Loss
$
(187
)
$
(140
)
$
(183
)
$
(2,813
)
$
(346
)
$
(236
)
$
(3,323
)
$
(582
)
Non-GAAP Net (Loss)/Income
$
44
$
95
$
40
$
145
$
(156
)
$
(72
)
$
324
$
(228
)
Non-GAAP Diluted (Loss)/Earnings Per Share
$
0.00
$
0.00
$
0.00
$
0.01
$
(0.01
)
$
(0.00
)
$
0.01
$
(0.01
)
Adjusted EBITDA
$
44
$
95
$
4
$
109
$
(159
)
$
(67
)
$
252
$
(226
)
Throughout this release, the use of non-GAAP financial measures is intended to provide useful information that supplements Altigen's results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measure at the end of this release.
Conference Call
Altigen will be discussing its financial results and outlook on a conference call today at 6:00 a.m. Pacific Time (9:00 a.m. ET). The conference call can be accessed by dialing (877) 545-0523 (domestic) or (973) 528-0016 (international), conference ID #235719. A live webcast will also be made available at www.altigen.com . To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #50498. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion.
About Altigen Technologies
Altigen Technologies (OTCQB: ATGN) is focused on driving digital transformation in today's modern workplace. Our Cloud Communications solutions and Technology Consulting services empower companies of all sizes to elevate customer engagement, increase employee productivity and improve operational efficiency. We're headquartered in Silicon Valley with operations strategically located in five countries spanning three continents. For more information, call 1-888-ALTIGEN or visit our website at www.altigen.com .
Safe Harbor Statement
This press release contains forward‐looking information. The statements are based on reasonable assumptions, beliefs and expectations of management and the Company provides no assurance that actual events will meet management's expectations. Furthermore, the forward-looking statements contained in this press release are based on the Company's views of future events and financial performances which are subject to known and unknown risks and uncertainties including, but not limited to, statements regarding our ability to drive business growth in fiscal 2024 and beyond, our ability to effectively sustain and manage future expenses and achieve future profitability. There can be no assurances that the Company will achieve the expected results, and actual results may be materially different than expectations and from those stated or implied in forward-looking statements.
Please refer to the Company's most recent Annual Report filed with the OTCQB over-the-counter market for a further discussion of risks and uncertainties. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company does not undertake any obligation to update any forward-looking statements.
Contact: Carolyn David Vice President of Finance Altigen Communications, Inc. (408) 597-9033 www.altigen.com
ALTIGEN COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (In thousands)
March 31,
2024
September 30,
2023
(unaudited)
(1)
ASSETS
Current assets:
Cash and cash equivalents
$
1,624
$
2,641
Accounts receivable, net
1,890
1,495
Other current assets
361
236
Total current assets
3,875
4,372
Property and equipment, net
1
3
Operating lease right-of-use assets
237
301
Goodwill
2,725
2,725
Intangible assets, net
1,476
1,568
Capitalized software development cost, net
1,209
1,215
Deferred tax asset
3,737
3,737
Other long-term assets
12
-
Total assets
$
13,272
$
13,921
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
118
$
58
Accrued compensation and benefits
371
417
Accrued expenses
435
455
Deferred consideration - current
522
510
Operating lease liabilities - current
173
324
Deferred revenue - current
433
477
Total current liabilities
2,052
2,241
Deferred consideration - long-term
214
208
Operating lease liabilities - long-term
74
-
Deferred revenue - long-term
148
134
Total liabilities
2,488
2,583
Stockholders' equity:
Common stock
24
24
Treasury stock
(1,565
)
(1,565
)
Additional paid-in capital
73,161
73,133
Accumulated deficit
(60,836
)
(60,254
)
Total stockholders' equity
10,784
11,338
Total liabilities and stockholders' equity
$
13,272
$
13,921
ALTIGEN COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, amounts in thousands)
Six Months Ended
March 31,
2024
2023
Cash flows from operating activities:
Net loss
$
(582
)
$
(327
)
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization
2
2
Amortization of intangible assets
92
92
Amortization of capitalized software
232
303
Stock-based compensation
28
61
Changes in operating assets and liabilities:
Accounts receivable and unbilled accounts receivable
(395
)
275
Prepaid expenses and other current assets
(125
)
(94
)
Other long-term assets
(12
)
12
Accounts payable
60
(5
)
Accrued expenses
(62
)
188
Deferred revenue
(29
)
(114
)
Net cash (used in) provided by operating activities
(791
)
393
Cash flows from investing activities:
Capitalized software development costs
(226
)
(285
)
Net cash used in investing activities
(226
)
(285
)
Cash flows from financing activities:
Proceeds from issuances of common stock
-
36
Net cash provided by financing activities
-
36
Net increase/(decrease) in cash and cash equivalents
(1,017
)
144
Cash and cash equivalents, beginning of period
2,641
3,232
Cash and cash equivalents, end of period
$
1,624
$
3,376
ALTIGEN COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (amounts in thousands, except per share data)
Three Months Ended
Six Months Ended
March 31,
March 31,
2024
2023
2024
2023
Net revenue
$
3,360
$
3,373
$
6,600
$
6,833
Gross profit
2,061
2,140
4,015
4,348
Operating expenses:
Research and development
1,202
1,299
2,438
2,550
Selling, general & administrative
1,100
972
2,161
2,116
Operating loss
(241
)
(131
)
(584
)
(318
)
Other income/(expense), net
5
-
2
-
Net loss before provision for income taxes
(236
)
(131
)
(582
)
(318
)
Income tax benefit (expense)
-
(9
)
-
(9
)
Net loss
$
(236
)
$
(140
)
$
(582
)
$
(327
)
Per share data:
Basic
$
(0.01
)
$
(0.01
)
$
(0.02
)
$
(0.01
)
Diluted
$
(0.01
)
$
(0.01
)
$
(0.02
)
$
(0.01
)
Weighted average shares outstanding:
Basic
24,919
24,367
24,919
24,294
Diluted
24,919
24,367
24,919
24,294
ALTIGEN COMMUNICATIONS, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) (amounts in thousands, except per share data)
Three Months Ended
Six Months Ended
March 31,
March 31,
2024
2023
2024
2023
Reconciliation of GAAP to Non-GAAP Gross Profit:
GAAP gross profit
$
2,061
$
2,140
$
4,015
$
4,348
Amortization of capitalized software
91
136
209
273
Acquisition related expenses
40
40
80
80
Non-GAAP gross profit
$
2,192
$
2,316
$
4,304
$
4,701
Reconciliation of GAAP to Non-GAAP Expenses:
GAAP operating expenses
$
2,302
$
2,271
$
4,599
$
4,666
Depreciation and amortization
1
1
2
2
Amortization of capitalized software
11
14
23
30
Amortization of intangible assets
6
6
12
12
Stock-based compensation
16
30
28
61
Non-GAAP operating expenses
$
2,268
$
2,220
$
4,534
$
4,561
Reconciliation of GAAP to Non-GAAP Net Income:
GAAP net loss
$
(236
)
$
(140
)
$
(582
)
$
(327
)
Depreciation and amortization
1
1
2
2
Amortization of capitalized software
102
150
232
303
Amortization of intangible assets
46
46
92
92
Stock-based compensation
16
30
28
61
Deferred tax asset valuation allowance
-
9
-
9
Non-GAAP net (loss) income
$
(71
)
$
96
$
(228
)
$
140
Per share data:
Basic
$
(0.00
)
$
0.00
$
(0.01
)
$
0.01
Diluted
$
(0.00
)
$
0.00
$
(0.01
)
$
0.01
Weighted average shares outstanding:
Basic
24,919
24,367
24,919
24,294
Diluted
24,919
25,497
24,919
25,574
Non-GAAP Financial Measures
In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis. These non-GAAP financial measures exclude stock-based compensation expense, amortization of acquired intangible assets, depreciation and amortization expenses, acquisition-related costs, change in deferred tax asset valuation allowance, litigation costs and other non-recurring or unusual charges or benefits that may arise from time to time that we do not consider to be directly related to core operating performance. We use non-GAAP measures to evaluate the core operating performance of our business and to perform financial planning. Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating: (i) the comparability of our on-going operating results over the periods presented and (ii) the ability to identify trends in our underlying business.
