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Altigen Technologies Reports Third Quarter Results for Fiscal Year 2024

Thursday, 01 August 2024 04:05 PM

Altigen Technologies

Topic:
Earnings

Q3 GAAP net income of $0.06 million; non- GAAP net income of $0.2 million

MILPITAS, CA / ACCESSWIRE / August 1, 2024 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft Cloud Communications Solutions provider, announced today its financial results for the third quarter ended June 30, 2024.

Third Quarter Fiscal 2024 Financial Results

  • Net revenue was $3.3 million, compared to $3.4 million in the prior year quarter;

  • Gross margin was 60.7%, compared to 63.3% in the prior year quarter;

  • GAAP net income and diluted EPS of $0.06 million and $0.00, respectively, compared with GAAP net loss of ($0.2) million, or ($0.01) per share in the prior year quarter;

  • Non-GAAP net income and diluted EPS of $0.2 million and $0.01, respectively, compared with non-GAAP net loss of ($0.07) million, or ($0.00) per share in the prior year quarter.

(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.

(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 2:00 p.m. Pacific Time (5:00 p.m. ET). The conference call can be accessed by dialing (888) 506-0062 (domestic) or (973) 528-0011 (international), conference ID #526216. 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 #50960. 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 may contain certain forward-looking statements and information regarding current and future business expectations, beliefs, plans and assumptions, which are subject to a number of risks and uncertainties. The forward-looking statements discussed in this press release may not occur and actual results could differ materially from those anticipated or implied. All information provided in this announcement is as of the date of this announcement, and the Company undertakes no duty to update such information except as required under applicable law. 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.

Contact:

Carolyn David
Vice President of Finance
Altigen Communications, Inc.
(408) 597-9033
www.altigen.com

ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)


June 30,
2024

September 30,
2023

(unaudited)

(1)

ASSETS

Current assets:

Cash and cash equivalents

$

2,002

$

2,641

Accounts receivable, net

1,772

1,495

Other current assets

287

236

Total current assets

4,061

4,372

Property and equipment, net

-

3

Operating lease right-of-use assets

43

301

Goodwill

2,725

2,725

Intangible assets, net

1,431

1,568

Capitalized software development cost, net

1,281

1,215

Deferred tax asset

3,737

3,737

Total assets

$

13,278

$

13,921

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

101

$

58

Accrued compensation and benefits

346

417

Accrued expenses

477

455

Deferred consideration - current

525

510

Operating lease liabilities - current

46

324

Deferred revenue - current

551

477

Total current liabilities

2,046

2,241

Deferred consideration - long-term

216

208

Deferred revenue - long-term

155

134

Total liabilities

2,417

2,583

Stockholders' equity:

Common stock

24

24

Treasury stock

(1,565

)

(1,565

)

Additional paid-in capital

73,175

73,133

Accumulated deficit

(60,773

)

(60,254

)

Total stockholders' equity

10,861

11,338

Total liabilities and stockholders' equity

$

13,278

$

13,921

(1) The information in this column was derived from the Company's audited consolidated financial statements as of and for the year ended September 30, 2023.

ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, amounts in thousands)

Nine Months Ended
June 30,

2024

2023

Cash flows from operating activities:

Net (loss)

$

(519

)

$

(510

)

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization

3

3

Amortization of intangible assets

137

137

Amortization of capitalized software

311

450

Stock-based compensation

42

90

Changes in operating assets and liabilities:

Accounts receivable and unbilled accounts receivable

(277

)

36

Prepaid expenses and other current assets

(51

)

(83

)

Other long-term assets

-

12

Accounts payable

43

(20

)

Accrued expenses

(47

)

325

Deferred revenue

96

(142

)

Net cash (used in) provided by operating activities

(262

)

298

Cash flows from investing activities:

Acquisition of business

-

(225

)

Capitalized software development costs

(377

)

(380

)

Net cash used in investing activities

(377

)

(605

)

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

(639

)

(271

)

Cash and cash equivalents, beginning of period

2,641

3,232

Cash and cash equivalents, end of period

$

2,002

$

2,961


ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(amounts in thousands, except per share data)

Three Months Ended

Nine Months Ended

June 30,

June 30,

2024

2023

2024

2023

Net revenue

$

3,283

$

3,366

$

9,883

$

10,199

Gross profit

1,994

2,129

6,009

6,477

Operating expenses:

Research and development

945

1,330

3,383

3,879

Selling, general & administrative

980

946

3,141

3,063

Operating income (loss)

69

(147

)

(515

)

(465

)

Interest income/(expense), net

11

(36

)

14

(36

)

Net income (loss) before provision for income taxes

80

(183

)

(501

)

(501

)

Income tax benefit (expense)

(18

)

-

(18

)

(9

)

Net income (loss)

$

62

$

(183

)

$

(519

)

$

(510

)

Per share data:

Basic

$

0.00

$

(0.01

)

$

(0.02

)

$

(0.02

)

Diluted

$

0.00

$

(0.01

)

$

(0.02

)

$

(0.02

)

Weighted average shares outstanding:

Basic

24,919

24,690

24,919

24,426

Diluted

26,026

24,690

24,919

24,426

ALTIGEN COMMUNICATIONS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
(amounts in thousands, except per share data)

Three Months Ended

Nine Months Ended

June 30,

June 30,

2024

2023

2024

2023

Reconciliation of GAAP to Non-GAAP Gross Profit:

GAAP gross profit

$

1,994

$

2,129

$

6,009

$

6,477

Amortization of capitalized software

70

134

279

407

Acquisition related expenses

40

40

120

120

Non-GAAP gross profit

$

2,104

$

2,303

$

6,408

$

7,004

Reconciliation of GAAP to Non-GAAP Expenses:

GAAP operating expenses

$

1,925

$

2,276

$

6,524

$

6,942

Depreciation and amortization

1

1

3

3

Amortization of capitalized software

9

13

32

43

Amortization of intangible assets

6

6

18

18

Stock-based compensation

14

29

42

90

Non-GAAP operating expenses

$

1,895

$

2,227

$

6,429

$

6,788

Reconciliation of GAAP to Non-GAAP Net Income:

GAAP net loss

$

62

$

(183

)

$

(519

)

$

(510

)

Depreciation and amortization

1

1

3

3

Amortization of capitalized software

79

147

311

450

Amortization of intangible assets

46

46

138

138

Stock-based compensation

14

29

42

90

Deferred tax asset valuation allowance

-

-

-

9

Non-GAAP net income (loss)

$

202

$

40

$

(25

)

$

180

Per share data:

Basic

$

0.01

$

0.00

$

(0.00

)

$

0.01

Diluted

$

0.01

$

0.00

$

(0.00

)

$

0.01

Weighted average shares outstanding:

Basic

24,919

24,690

24,919

24,426

Diluted

26,026

25,691

24,919

25,514

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

Topic:
Earnings
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