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.
|
| 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