Altigen Technologies Reports Third Quarter Results for Fiscal Year 2024

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 [phone] (domestic) or [phone] (international), conference ID #526216. A live webcast will also be made available at www.altigen.com. To access the replay, dial [phone] (domestic) or [phone] (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.
[phone]
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

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