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)
Net Revenue increased 4% to $3.4 million
Cloud services revenue decreased 9% to $1.7 million
Service and Other revenue increased 37% to $1.4 million
Gross margin increased to 63%, compared with 60%
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 (888) 506-0062 (domestic) or (973) 528-0011 (international), conference ID #451744. 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 #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 - [email protected]
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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