Altigen Technologies Reports Second Quarter Results for Fiscal Year 2024 By Investing.com



MILPITAS, CA / ACCESSWIRE / April 30, 2024 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft (NASDAQ:) 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.”

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
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
  1. 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 )
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
  1. 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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.

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
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, amounts in thousands)

Six Months Ended

March 31,

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
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.

SOURCE: Altigen Technologies





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *