MILPITAS, CA / ACCESSWIRE / February 22, 2024 / Altigen Technologies (OTCQB:ATGN), a leading provider of digital transformation solutions and services, announced today its financial results for the first quarter ended December 31, 2023.
First Quarter Highlights (Fiscal 2024 versus Fiscal 2023)
- Net Revenue decreased 6% to $3.2 million;
- Cloud services revenue increased 4% to $1.9 million;
- GAAP net loss and loss per share of ($0.3) million and ($0.01), respectively;
- Non-GAAP net loss and non-GAAP loss per share of ($0.2) million and ($0.01), respectively.
The company also announced that Joe Hamblin has joined the leadership team as Chief Digital and Transformation Officer, effective February 19, 2024. Furthermore, the company announced the resignation of Trent Rowley, Chief Operations Officer and Chris Weidemann, Chief Technology Officer, effective March 1, 2024 to pursue other interests.
"Our first quarter results were impacted by a number of issues related to new product rollouts, new internal systems and changes in our organization structure to better align with our business objectives", said Jeremiah Fleming, Altigen President & CEO. "Appropriately dealing with many of these issues required an increase in expenses on a short term basis. The majority of the issues, and associated expenses, have now been addressed with plans to deal with any remaining items this quarter. With the short term expense increases largely behind us along with our new solutions beginning to roll out, Altigen is in a much stronger position to execute than ever before."
"Joe Hamblin's return to the company is also a very exciting development. Joe's experience in the industry, knowledge of the Altigen business, leadership skills and passion for success will be an impactful force in driving the company forward."
Joe Hamblin commented, "I'm pleased to rejoin the Altigen team, particularly at this pivotal point in the company's journey. As Chief Digital and Transformation Officer I have the authority and responsibility to drive all technical, operational and execution strategies. This includes our current solutions and services as well as our new AI initiatives. I believe the company is absolutely poised for success and I'm here to make sure that happens."
| Select Financial Metrics: Fiscal 2024 versus Fiscal 2023 | |||||||||||||
(in thousands, except for EPS and percentages) | Fiscal 1Q24 | Fiscal 1Q23 | Change | ||||||||||
Total Revenue | $ | 3,240 | $ | 3,460 | -6.4 | % | |||||||
Cloud Services | 1,890 | 1,822 | 3.7 | % | |||||||||
Services an Other | 996 | 1,174 | -15.2 | % | |||||||||
Legacy Products | 354 | 464 | -23.7 | % | |||||||||
Software Assurance | 342 | 424 | -19.3 | % | |||||||||
Perpetual Software License | 12 | 40 | -70.0 | % | |||||||||
GAAP Operating Loss | $ | (343 | ) | $ | (188 | ) | nm | ||||||
Operating Margin | -10.6 | % | -5.4 | % | |||||||||
Non-GAAP Operating Loss | $ | (330 | ) | $ | (156 | ) | nm | ||||||
Non-GAAP Operating Margin | -10.2 | % | -4.5 | % | |||||||||
GAAP Net Loss | $ | (346 | ) | $ | (187 | ) | nm | ||||||
GAAP Loss Per Share | $ | (0.01 | ) | $ | (0.01 | ) | nm | ||||||
Non-GAAP Net (Loss)/Income | $ | (156 | ) | $ | 44 | nm | |||||||
Non-GAAP Diluted (Loss)/Earnings Per Share | $ | (0.01 | ) | $ | 0.00 | nm | |||||||
Adjusted EBITDA(1) | $ | (159 | ) | $ | 44 | nm | |||||||
Cash Flow from Operations | $ | (498 | ) | $ | (167 | ) | nm | ||||||
nm = not measurable/meaningful; *may not add up due to rounding
(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 | FY2023 | FY2024 | |||||||||||||||||||||
Total Revenue | $ | 3,460 | $ | 3,373 | $ | 3,366 | $ | 3,482 | $ | 3,240 | $ | 13,681 | $ | 3,240 | ||||||||||||||
Cloud Services | 1,822 | 1,894 | 1,957 | 1,983 | 1,890 | 7,656 | 1,890 | |||||||||||||||||||||
Services and Other | 1,174 | 1,028 | 999 | 1,100 | 996 | 4,301 | 996 | |||||||||||||||||||||
Legacy Products | 464 | 451 | 410 | 399 | 354 | 1,724 | 354 | |||||||||||||||||||||
Software Assurance | 424 | 390 | 384 | 353 | 342 | 1,551 | 342 | |||||||||||||||||||||
Perpetual Software License | 40 | 61 | 26 | 46 | 12 | 173 | 12 | |||||||||||||||||||||
GAAP Operating (Loss)/Income | $ | (188 | ) | $ | (131 | ) | $ | (147 | ) | $ | 30 | $ | (343 | ) | $ | (436 | ) | $ | (343 | ) | ||||||||
Operating Margin | -5.4 | % | -3.9 | % | -4.4 | % | 0.9 | % | -10.6 | % | -3.2 | % | -10.6 | % | ||||||||||||||
Non-GAAP Operating (Loss)/Income | $ | (156 | ) | $ | (101 | ) | $ | (118 | ) | $ | 58 | $ | (330 | ) | $ | (317 | ) | $ | (330 | ) | ||||||||
Non-GAAP Operating Margin | -4.5 | % | -3.0 | % | -3.5 | % | 1.7 | % | -10.2 | % | -2.3 | % | -10.2 | % | ||||||||||||||
GAAP Net Loss | $ | (187 | ) | $ | (140 | ) | $ | (183 | ) | $ | (2,813 | ) | $ | (346 | ) | $ | (3,323 | ) | $ | (346 | ) | |||||||
Non-GAAP Net (Loss)/Income | $ | 44 | $ | 95 | $ | 40 | $ | 145 | $ | (156 | ) | $ | 324 | $ | (156 | ) | ||||||||||||
Non-GAAP Diluted (Loss)/Earnings Per Share | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.01 | $ | (0.01 | ) | $ | 0.01 | $ | (0.01 | ) | ||||||||||||
Adjusted EBITDA(1) | $ | 44 | $ | 95 | $ | 4 | $ | 109 | $ | (159 | ) | $ | 252 | $ | (159 | ) | ||||||||||||
(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 #924003. A live webcast will also be made available at www.altigen.com. To access the reply, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #49956. 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 execute our business plans; our ability to successfully introduce new products and services, as well as our ability to control costs and any statements of execution strategies, growth and expectations and timing related to new solutions. 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 Technologies
(408) 597-9033
www.altigen.com
ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
December 31, 2023 | September 30, 2023 | |||||||
| (unaudited) | (1) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,031 | $ | 2,641 | ||||
Accounts receivable, net | 1,559 | 1,495 | ||||||
Other current assets | 349 | 236 | ||||||
Total current assets | 3,939 | 4,372 | ||||||
Property and equipment, net | 2 | 3 | ||||||
Operating lease right-of-use assets | 328 | 301 | ||||||
Goodwill | 2,725 | 2,725 | ||||||
Intangible assets, net | 1,522 | 1,568 | ||||||
Capitalized software development cost, net | 1,197 | 1,215 | ||||||
Deferred tax asset | 3,737 | 3,737 | ||||||
Other long-term assets | 12 | - | ||||||
Total assets | $ | 13,462 | $ | 13,921 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 103 | $ | 58 | ||||
Accrued compensation and benefits | 286 | 417 | ||||||
Accrued expenses | 441 | 455 | ||||||
Deferred consideration - current | 516 | 510 | ||||||
Operating lease liabilities - current | 260 | 324 | ||||||
Deferred revenue - current | 413 | 477 | ||||||
Total current liabilities | 2,019 | 2,241 | ||||||
Deferred consideration - long-term | 211 | 208 | ||||||
Operating lease liabilities - long-term | 84 | - | ||||||
Deferred revenue - long-term | 144 | 134 | ||||||
Total liabilities | 2,458 | 2,583 | ||||||
Stockholders' equity: | ||||||||
Common stock | 24 | 24 | ||||||
Treasury stock | (1,565 | ) | (1,565 | ) | ||||
Additional paid-in capital | 73,145 | 73,133 | ||||||
Accumulated deficit | (60,600 | ) | (60,254 | ) | ||||
Total stockholders' equity | 11,004 | 11,338 | ||||||
Total liabilities and stockholders' equity | $ | 13,462 | $ | 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(amounts in thousands, except per share data)
| Three Months Ended | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
Net revenue | $ | 3,240 | $ | 3,460 | ||||
Gross profit | 1,954 | 2,208 | ||||||
Operating expenses: | ||||||||
Research and development | 1,236 | 1,250 | ||||||
Selling, general & administrative | 1,061 | 1,145 | ||||||
Operating loss | (343 | ) | (187 | ) | ||||
Other income/(expense), net | (3 | ) | - | |||||
Net loss before provision for income taxes | (346 | ) | (187 | ) | ||||
Net loss | $ | (346 | ) | $ | (187 | ) | ||
Per share data: | ||||||||
Basic | $ | (0.01 | ) | $ | (0.01 | ) | ||
Diluted | $ | (0.01 | ) | $ | (0.01 | ) | ||
Weighted average shares outstanding: | ||||||||
Basic | 24,919 | 24,223 | ||||||
Diluted | 24,919 | 24,223 | ||||||
ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, amounts in thousands)
Three Months Ended | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| Cash flows from operating activities: | ||||||||
Net loss | $ | (346 | ) | $ | (187 | ) | ||
| ||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation and amortization | 1 | 1 | ||||||
Amortization of intangible assets | 46 | 46 | ||||||
Amortization of capitalized software | 130 | 153 | ||||||
Stock-based compensation | 12 | 31 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable and unbilled accounts receivable | (64 | ) | (205 | ) | ||||
Prepaid expenses and other current assets | (113 | ) | (93 | ) | ||||
Other long-term assets | (12 | ) | - | |||||
Accounts payable | 45 | (7 | ) | |||||
Accrued expenses | (143 | ) | 51 | |||||
Deferred revenue | (54 | ) | 43 | |||||
Net cash used in operating activities | (498 | ) | (167 | ) | ||||
| ||||||||
Cash flows from investing activities: | ||||||||
Capitalized software development costs | (112 | ) | (185 | ) | ||||
Net cash used in investing activities | (112 | ) | (185 | ) | ||||
| ||||||||
Cash flows from financing activities: | ||||||||
Net cash provided by (used in) financing activities | - | - | ||||||
Net decrease in cash and cash equivalents | (610 | ) | (352 | ) | ||||
Cash and cash equivalents, beginning of period | 2,641 | 3,232 | ||||||
Cash and cash equivalents, end of period | $ | 2,031 | $ | 2,880 | ||||
ALTIGEN COMMUNICATIONS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
(amounts in thousands, except per share data)
| Three Months Ended | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
Reconciliation of GAAP to Non-GAAP Gross Profit: | ||||||||
GAAP gross profit | $ | 1,954 | $ | 2,208 | ||||
Amortization of capitalized software | 118 | 137 | ||||||
Amortization of acquired customer relationships | 40 | 40 | ||||||
Non-GAAP gross profit | $ | 2,112 | $ | 2,385 | ||||
Reconciliation of GAAP to Non-GAAP Expenses: | ||||||||
GAAP operating expenses | $ | 2,297 | $ | 2,395 | ||||
Depreciation and amortization | 1 | 1 | ||||||
Amortization of capitalized software | 12 | 16 | ||||||
Amortization of intangible assets | 6 | 6 | ||||||
Stock-based compensation | 12 | 31 | ||||||
Non-GAAP operating expenses | $ | 2,266 | $ | 2,341 | ||||
Reconciliation of GAAP to Non-GAAP Net (Loss) Income: | ||||||||
GAAP net loss | $ | (346 | ) | $ | (187 | ) | ||
Depreciation and amortization | 1 | 1 | ||||||
Amortization of capitalized software | 130 | 153 | ||||||
Amortization of intangible assets | 46 | 46 | ||||||
Stock-based compensation | 12 | 31 | ||||||
Non-GAAP net (loss) income | $ | (157 | ) | $ | 44 | |||
Per share data: | ||||||||
Basic | $ | (0.01 | ) | $ | 0.00 | |||
Diluted | $ | (0.01 | ) | $ | 0.00 | |||
Weighted average shares outstanding: | ||||||||
Basic | 24,919 | 24,223 | ||||||
Diluted | 24,919 | 25,632 | ||||||
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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