Altigen Technologies Reports First Quarter Results for Fiscal Year 2025

2nd Consecutive Profitable Quarter

NEWARK, CA / ACCESS Newswire / February 27, 2025 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft Cloud Communications Solutions provider, announced today its financial results for the first quarter ended December 31, 2024.

Our fiscal first quarter represented our 2nd consecutive quarter of profitability," said Jeremiah Fleming, Altigen President & CEO. "On a year over year basis our results improved in virtually every category. Although our cloud services revenue decreased on a year over year basis, we did experience modest growth on a sequential quarterly basis. Overall, our digital transformation efforts are gaining traction as evidenced by our reduction in operating expenses. Going forward we expect to see similar improvements in our top line revenue."

Quarter Highlights (1Q 2025 versus 1Q 2024)

1. Net Revenue increased 4% to $3.4 million

2. Cloud services revenue decreased 9% to $1.7 million

3. Service and Other revenue increased 37% to $1.4 million

4. Gross margin increased to 63%, compared with 60%

5. GAAP net income was $87 thousand, compared with ($346) thousand

Select Financial Metrics: Fiscal 2025 versus Fiscal 2024

(in thousands, except for EPS and percentages)		Fiscal 1Q25				Fiscal 1Q24				Change
Total Revenue		$	3,378			$	3,240				4	%
Cloud Services			1,720				1,890				(9	%)
Services and Other			1,366				996				37	%
Legacy Products			292				354				(18	%)
GAAP Operating (Loss) / Income		$	74			$	(343	)			122	%
Operating Margin			2.2	%			(10.6	%)
Non-GAAP Operating (Loss)/ Income		$	112			$	(330	)			134	%
Non-GAAP Operating Margin			3.3	%			(10.2	%)
GAAP Net Income/(Loss)		$	87			$	(346	)			125	%
GAAP Income/ (Loss) Per Share		$	0.01			$	(0.01	)			nm
Adjusted EBITDA (1)		$	291			$	(159	)			283	%
Cash Flow from Operations		$	(95	)		$	(498	)			81	%

nm = not measurable/ meaningful; *may not add up due to rounding

Adjusted EBITDA excludes one-time litigation costs and other non-recurring or unusual charges that may arise from time to time that we do not consider to be directly related to core operating performance.

Trended Financial Information

(in thousands, except for EPS and percentages)		Fiscal 1Q25				Fiscal 4Q24				Fiscal 3Q24				Fiscal 2Q24				Fiscal 1Q24
Total Revenue		$	3,378			$	3,736			$	3,283			$	3,360			$	3,240
Cloud Services			1,720				1,680				1,710				1,817				1,890
Services and Other			1,366				1,731				1,249				1,183				996
Legacy Products			292				325				324				360				354
GAAP Operating (Loss) / Income		$	75			$	209			$	68			$	(241	)		$	(343	)
Operating Margin			2.2	%			0.7	%			2.1	%			(7.2	%)			(10.6	%)
GAAP Net Income/(Loss)		$	87			$	2,079			$	62			$	(236	)		$	(346	)
Adjusted EBITDA (1)		$	291				507			$	214			$	(67	)		$	(159	)

Adjusted EBITDA excludes one-time litigation costs and other non-recurring or unusual charges that may arise from time to time that we do not consider to be directly related to core operating performance.

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 #451744. A live webcast will also be made available at www.altigen.com. To access the replay, dial [phone] (domestic) or [phone] (international), conference ID #52071. 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 the Company's operational improvements, performance enhancements, AI solution development, and expectations for sustainable growth. 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:

• Altigen Communications, Inc.

• Investor Relations - [e-mail]

Altigen Communications, INC.
Consolidated Balance Sheets
(in thousands, except shared and per share data

		Dec 31, 2024 (unaudited)				Sept 30, 2024 (1)
Assets
Current Assets
Cash and cash equivalents		$	2,235			$	2,575
Accounts receivable, net			2,199				1,770
Other current assets			306				185
Total Assets			4,740				4,530
Property and equipment, net
Operating lease right-of-use assets			123				149
Goodwill			2,725				2,725
Intangible assets, net			1,254				1,242
Capitalized software development cost, net			1,527				1,363
Deferred Tax Asset			5,638				5,638
Other long-term assets			2				2
Total Assets		$	16,009				15,649
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	553			$	98
Accrued compensation and benefits			449				593
Accrued expenses			509				446
Deferred consideration - current			744				744
Operating lease liabilities - current			85				104
Deferred revenue - current			494				481
Total current liabilities		$	2,834			$	2,466
Deferred consideration - long-term			-				-
Operating lease liabilities - long-term			44				49
Deferred revenue - long-term			81				176
Total liabilities		$	2,959			$	2,691
Stockholders' equity:
Common stock			24				24
Treasury stock		$	(1,579	)		$	(1,565	)
Additional paid-in capital			73,212				73,193
Accumulated deficit			(58,607	)			(58,694	)
Total stockholders' equity			13,050				12,958
Total liabilities and stockholders' equity		$	16,009			$	15,649

The information in this column was derived from the Company's audited consolidated financial statements as of and for the year ended September 30, 2024

Altigen Communications, INC.
Consolidated Statements of Cash Flows
(Amounts in thousands)

		Three Months Ended December 31
		2024				2023
Cash flows from operating activities:
Net income (loss)		$	87			$	(346	)
Adjustments to reconcile net income to net cash from operating activities:
Impairment of capitalized software			-				-
Impairment of intangible assets			-				-
Depreciation and amortization			-				1
Deferred income tax expense			-				-
Amortization of intangible assets			47				46
Amortization of capitalized software			35				130
Stock-based compensation			18				12
Changes in operating assets and liabilities:
Accounts receivable and unbilled accounts receivable			(440	)			(64	)
Prepaid expenses and other current assets			(110	)			(113	)
Other long-term assets			-				(12	)
Accounts payable			455				45
Accrued expenses			(281	)			(143	)
Deferred revenue			94				(54	)
Net cash provided by operating activities			(95	)			(498	)
Cash flows from investing activities:
Acquisition of business			-				-
Capitalized software development costs			(231	)			(112	)
Net cash used in investing activities			(231	)			(112	)
Cash flows from financing activities:
Payment related to business acquisition			-				-
Exercise of stock option			(14	)			-
Net cash used in financing activities			-				-
Net decrease in cash and cash equivalents			(340	)			(610	)
Cash and cash equivalents, beginning of year			2,575				2,641
Cash and cash equivalents, end of year		$	2,235			$	2,031

Altigen Communications, INC.
UnAudited Consolidated Condensed Statements of Operations
(Amounts in thousands, except share data)

		Three Months Ended December 31
		2024				2023
Net revenue		$	3,378			$	3,240
Gross profit			2,130				1,954
Operating expenses:
Research and development			251				1,236
Selling, general & administrative			1,804				1,061
Operating income (loss)			75				(343	)
Interest expense			-				(9	)
Interest and other income			12				6
Net income (loss) before provision for income taxes			87				(346	)
Income tax benefit (expense) (1)			-				-
Net income (loss)		$	87			$	(346	)
Per share data:
Basic		$	0.00			$	(0.01	)
Diluted		$	0.00			$	(0.01	)
Weighted average shares outstanding:
Basic			24,919				24,919
Diluted			25,347				24,919

Altigen Communications, INC.
Reconciliation of GAAP to NON-GAAP Financial Measures
(Amounts in thousands, except share data)

		Three Months Ended December 31
		2024				2023
Reconciliation of GAAP to Non-GAAP Gross Profit:
GAAP gross profit		$	2,130			$	1,954
Amortization of capitalized software			29				118
Amortization of acquired customer relationships			40				40
Non-GAAP gross profit		$	2,199			$	2,112
Reconciliation of GAAP to Non-GAAP Expenses:
GAAP operating expenses		$	2,056			$	2,297
Depreciation and amortization			-				1
Amortization of capitalized software			6				12
Amortization of intangible assets			7				6
Stock-based compensation			18				12
Non-GAAP operating expenses		$	2,087			$	2,328
Reconciliation of GAAP to Non-GAAP Net Income:
GAAP net profit / (loss)		$	87			$	(345	)
Depreciation and amortization			-				1
Amortization of capitalized software			35				130
Amortization of intangible assets			47				46
Stock-based compensation			18				12
Deferred tax asset valuation allowance			-				-
Non-GAAP net income		$	187			$	(156	)
Per share data:
Basic		$	0.01			$	(0.01	)
Diluted		$	0.01			$	(0.01	)
Weighted average shares outstanding:
Basic			24,919				24,919
Diluted			25,347				25,903

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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