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, | |
| | | | | | |
| | | | | | | |
| 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.
SOURCE: Altigen Technologies
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