U.S. Markets close in 6 hrs 2 mins
  • S&P 500

    4,150.38
    -29.38 (-0.70%)
     
  • Dow 30

    33,927.22
    -126.72 (-0.37%)
     
  • Nasdaq

    12,098.58
    -102.24 (-0.84%)
     
  • Russell 2000

    1,987.60
    -13.62 (-0.68%)
     
  • Crude Oil

    76.86
    +0.98 (+1.29%)
     
  • Gold

    1,897.70
    -33.10 (-1.71%)
     
  • Silver

    22.89
    -0.73 (-3.07%)
     
  • EUR/USD

    1.0866
    -0.0045 (-0.4129%)
     
  • 10-Yr Bond

    3.4950
    +0.0990 (+2.92%)
     
  • Vix

    18.30
    -0.43 (-2.30%)
     
  • GBP/USD

    1.2137
    -0.0092 (-0.7489%)
     
  • USD/JPY

    130.3520
    +1.7480 (+1.3592%)
     
  • BTC-USD

    23,524.50
    -238.63 (-1.00%)
     
  • CMC Crypto 200

    537.86
    +1.00 (+0.19%)
     
  • FTSE 100

    7,881.29
    +61.13 (+0.78%)
     
  • Nikkei 225

    27,509.46
    +107.41 (+0.39%)
     

Altigen Communications, Inc. Reports Fourth Quarter and Full-Year Fiscal 2022 Results

Altigen Communications, Inc.

Fourth Quarter Cloud and Professional Services Revenue Increases 47%

MILPITAS, CA / ACCESSWIRE / December 15, 2022 / Altigen Communications, Inc. (OTCQB:ATGN), a Silicon Valley-based cloud solutions provider for the Unified Communications as a Service (UCaaS), Contact Center as a Service (CCaaS) and our Customer Engagement as a Service (CEaaS) markets, announced today its financial results for the fourth quarter and year ended September 30, 2022.

"Fiscal 2022 was a critical year for Altigen, marking the transition to our new Customer Experience Cloud Solutions portfolio," said Jerry Fleming, chairman and CEO of Altigen. "During the year we made significant enhancements to our CoreInteract Customer Engagement as a Service (CEaaS) platform, established a beachhead base of CoreInteract customers, launched the new FrontStage Contact Center as a Service (CCaaS) solution for our FinTech Customers, and deployed our new geo-redundant MaxCloud Unified Communications as a Service (UCaaS) platform to over 30 customers.

"In addition, we also acquired ZAACT Consulting, a leading Microsoft solutions partner, which added valuable Microsoft technical expertise required by our enterprise customers. All in all, I believe the steps taken during fiscal 2022 mark a key catalyst in our evolution that will enable Altigen to take advantage of today's Digital Transformation market opportunities within the Microsoft Teams platform, Fiserv's significant customer base and our third-party channel."

Fourth Quarter Highlights (Fiscal 2022 versus Fiscal 2021)

  • Net Revenue increased 28% to $3.6 million;

  • Cloud services revenue decreased 1.0% to $1.9 million;

  • Professional services and other revenue increased 706% to $1.2 million;

  • Service support and software revenue decreased 31% to $0.5 million;

  • Gross margin decreased to 63.8%, compared with 71.4%;

  • GAAP net loss was $0.8 million and diluted EPS of ($0.03);

  • Non-GAAP net income and non-GAAP diluted EPS of $0.2 million and $0.01, respectively, compared to $0.4 million and $0.01, respectively.

Full Year Highlights (Fiscal 2022 versus Fiscal 2021)

  • Net Revenue increased 8% to $11.9 million;

  • Cloud services revenue was $7.6 million, relatively flat to the prior year;

  • Professional services and other revenue increased 295% to $1.9 million;

  • Service support and software revenue decreased 20% to $2.3 million;

  • Gross margin decreased to 68.1%, compared with 72.0%;

  • GAAP net loss was $0.7 million and diluted EPS of ($0.03);

  • Non-GAAP net income and non-GAAP diluted EPS of $1.1 million and $0.04, respectively, compared to $1.3 million and $0.05, respectively.

Select Financial Metrics: Fiscal 2022 versus Fiscal 2021

(in thousands, except for EPS and percentages)

Fiscal
4Q22

Fiscal
4Q21

Change

YTD
FY22

YTD
FY21

Change

Total Revenue

$

3,571

$

2,794

27.8%

$

11,891

$

10,990

8.2%

Cloud Services

1,943

1,970

-1.4%

7,639

7,630

0.1%

Professional and Other Services

1,161

144

706.3%

1,979

501

295.0%

Legacy Products

467

680

-31.3%

2,273

2,859

-20.5%

Software Assurance

417

523

-20.3%

1,867

2,283

-18.2%

Perpetual Software License

50

157

-68.2%

406

576

-29.5%

GAAP Operating (Loss)/Income

$

(659)

$

71

nm

$

(580)

$

(20)

nm

Operating Margin

-18.5%

2.5%

-4.9%

-0.2%

Non-GAAP Operating (Loss)/Income

$

(62)

$

121

nm

$

99

$

436

-77.3%

Non-GAAP Operating Margin

-1.7%

4.3%

0.8%

4.0%

GAAP Net Loss

$

(764)

$

(1,193)

-36.0%

$

(697)

$

(491)

-42.0%

Non-GAAP Net Income

$

205

$

358

-42.7%

$

1,084

$

1,284

-15.6%

Non-GAAP Diluted Earnings Per Share

$

0.01

$

0.01

0.0%

$

0.04

$

0.05

-20.0%

Adjusted EBITDA(1)

$

204

$

360

-43.3%

$

1,082

$

1,285

-15.8%

Cash Flow from Operations

$

(8)

$

352

nm

$

(84)

$

589

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
1Q21

Fiscal
2Q21

Fiscal
3Q21

Fiscal
4Q21

Fiscal
1Q22

Fiscal
2Q22

Fiscal
3Q22

Fiscal
4Q22

FY 21

FY22

Total Revenue

$ 2,661

$ 2,687

$ 2,848

$ 2,794

$ 2,733

$ 2,558

$ 3,029

$ 3,571

$ 10,990

$ 11,891

Cloud Services

1,841

1,855

1,964

1,970

1,910

1,880

1,906

1,943

7,630

7,639

Professional and Other Services

71

75

211

144

139

124

555

1,161

501

1,979

Legacy Products

749

757

673

680

684

554

568

467

2,859

2,273

Software Assurance

633

577

550

523

506

471

473

417

2,283

1,867

Perpetual Software License

116

180

123

157

178

83

95

50

576

406

GAAP Operating Income/(Loss)

$ 55

$ (325)

$ 179

$ 71

$ 10

$ 78

$ (9)

$ (659)

$ (20)

$ (580)

Operating Margin

2.1%

-12.1%

6.3%

2.5%

0.4%

3.0%

-0.3%

-18.5%

-0.2%

-4.9%

Non-GAAP Operating Income/(Loss)

$ 77

$ 21

$ 217

$ 121

$ 66

$ 92

$ 3

$ (62)

$ 436

$ 99

Non-GAAP Operating Margin

2.9%

0.8%

7.6%

4.3%

2.4%

3.6%

0.1%

-1.7%

4.0%

0.8%

GAAP Net Income/(Loss)

$ 56

$ (336)

$ 982

$ (1,193)

$ 11

$ 65

$ (9)

$ (764)

$ (491)

$ (697)

Non-GAAP Net Income

$ 235

$ 238

$ 453

$ 358

$ 313

$ 342

$ 224

$ 205

$ 1,284

$ 1,084

Non-GAAP Diluted Earnings Per Share

$ 0.01

$ 0.01

$ 0.02

$ 0.01

$ 0.01

$ 0.01

$ 0.01

$ 0.01

$ 0.05

$ 0.04

Adjusted EBITDA(1)

$ 235

$ 238

$ 452

$ 360

$ 312

$ 342

$ 224

$ 204

$ 1,285

$ 1,082

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.

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 a.m. ET). The conference call can be accessed by dialing (888) 506-0062 (domestic) or (973) 528-0011 (international), conference ID #948950. 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 #47302. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion.

About Altigen Communications
Altigen Communications Inc. (OTCQB: ATGN), based in Silicon Valley, is a leading Microsoft Cloud Solutions provider, delivering fully managed Cloud-based Unified Communications services based on the Microsoft platform. Our SIP trunk services, enterprise customer engagement and innovative cloud contact center solutions seamlessly integrate with Microsoft Teams to enhance and extend the business communications capabilities for our customers. Altigen's solutions are designed for high reliability, ease of use, seamless integration into Microsoft technologies, all delivered as fully managed cloud services. Our solutions are available through our global network of certified resellers. 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 successfully integrate acquired businesses and technologies, our ability to accelerate business opportunities and to achieve increased market acceptance for our service offerings, and our ability to penetrate new markets. There can be no assurances that the Company will achieve 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:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
brian@haydenir.com

ALTIGEN COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, amounts in thousands)




September 30, 2022

September 30, 2021

ASSETS



Current assets:



Cash and cash equivalents

$

3,232

$

6,799

Accounts receivable, net

1,220

596

Other current assets

206

145

Total current assets

4,658

7,540


Property and equipment, net

7

27

Operating lease right-of-use assets

572

826

Goodwill

2,725

-

Intangible assets, net

1,882

433

Capitalized software development cost, net

1,331

1,669

Deferred tax asset

6,493

6,597

Other long-term assets

37

45

Total assets

$

17,705

$

17,137


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

53

$

86

Accrued compensation and benefits

364

251

Accrued expenses

530

587

Acquisition-related contingent consideration - current

500

-

Operating lease liabilities, current

383

311

Deferred revenue - current

566

696

Total current liabilities

2,396

1,931

Contingent consideration on acquired business - long-term

670

-

Operating lease liabilities - long-term

233

570

Deferred revenue - long-term

206

166

Total liabilities

3,505

2,667


Stockholders' equity:

Common stock

24

24

Treasury stock

(1,565)

(1,565)

Additional paid-in capital

72,671

72,243

Accumulated deficit

(56,930)

(56,232)

Total stockholders' equity

14,200

14,470

Total liabilities and stockholders' equity

$

17,705

$

17,137


ALTIGEN COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

Three Months Ended

Twelve Months Ended

September 30,

September 30,

2022

2021

2022

2021

Net revenue

$

3,571

$

2,794

$

11,891

$

10,990

Gross profit

2,277

1,996

8,093

7,916

Operating expenses:

Research and development

1,497

1,108

4,651

3,848

Selling, general & administrative

1,439

817

4,022

3,775

Litigation

-

-

-

313

Operating (loss)/income

(659)

71

(580)

(20)

Gain on extinguishment of debt - PPP loan forgiveness (1)

-

-

-

804

Other income, net

-

-

1

-

Net (loss) income before provision for income taxes

(659)

71

(579)

784

Income tax benefit (expense) (2)

(105)

(1,264)

(119)

(1,275)

Net loss

$

(764)

$

(1,193)

$

(698)

$

(491)

Per share data:

Basic

$

(0.03)

$

(0.05)

$

(0.03)

$

(0.02)

Diluted

$

(0.03)

$

(0.05)

$

(0.03)

$

(0.02)

Weighted average shares outstanding:

Basic

24,223

23,556

24,016

23,279

Diluted

25,701

25,474

25,561

25,232

______________________

  1. During the third quarter of fiscal 2021, the Company recorded a non-cash gain on debt extinguishment of $804,200 related to the forgiveness of the Company's PPP loan which originated during the third quarter of fiscal 2020.

  2. The Company's fourth quarter fiscal year 2022 and 2021 results include a non-cash tax expense of approximately $105,000 and $1.3 million, respectively, related to the Company's income tax rate which differs from its statutory rate primarily due to expired net operating losses.

ALTIGEN COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, amounts in thousands)

Twelve Months Ended

September 30,

2022

2021

Cash flows from operating activities:

Net loss

$

(698)

$

(491)

Adjustments to reconcile net income to net cash from operating activities:

Impairment of capitalized software

189

92

Loss on disposal of property, equipment and other assets

5

-

Depreciation and amortization

15

28

Deferred income tax expense

104

1,308

Amortization of intangible assets

221

174

Amortization of capitalized software

743

646

Stock-based compensation

93

143

Gain from extinguishment of debt - PPP loan forgiveness

-

(804)

Changes in operating assets and liabilities:

Accounts receivable and unbilled accounts receivable

(624)

(183)

Prepaid expenses and other current assets

(61)

13

Other long-term assets

8

(15)

Accounts payable

(33)

(11)

Accrued expenses

44

(135)

Deferred revenue

(90)

(176)

Net cash provided by operating activities

(84)

589

Cash flows from investing activities:

Purchase of property and equipment

-

(11)

Acquisition of business

(2,925)

-

Capitalized software development costs

(594)

(603)

Net cash used in investing activities

(3,519)

(614)

Cash flows from financing activities:

Proceeds from issuances of common stock

36

165

Net cash provided by financing activities

36

165

Net decrease in cash and cash equivalents

(3,567)

140

Cash and cash equivalents, beginning of period

6,799

6,659

Cash and cash equivalents, end of period

$

3,232

$

6,799

ALTIGEN COMMUNICATIONS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands, except per share data)

Three Months Ended

Twelve Months Ended

September 30,

September 30,

2022

2021

2022

2021

Reconciliation of GAAP to Non-GAAP Gross Profit:

GAAP gross profit

$

2,277

$

1,996

$

8,093

$

7,916

Amortization of capitalized software

151

154

633

475

Amortization of acquired customer relationships

82

43

213

174

Non-GAAP gross profit

$

2,510

$

2,193

$

8,939

$

8,565

Reconciliation of GAAP to Non-GAAP Expenses:

GAAP operating expenses

$

2,936

$

1,925

$

8,673

$

7,936

Acquisition related expenses

587

-

587

-

Litigation

-

-

-

313

Depreciation and amortization

7

5

20

28

Amortization of capitalized software

18

36

109

171

Amortization of intangible assets

8

-

8

-

Stock-based compensation

11

49

93

143

Non-GAAP operating expenses

$

2,305

$

1,835

$

7,856

$

7,281

Reconciliation of GAAP to Non-GAAP Net Income:

GAAP net loss

$

(764)

$

(1,193)

$

(698)

$

(491)

Acquisition related expenses

587

-

587

-

Litigation

-

-

-

313

Depreciation and amortization

7

5

20

28

Amortization of capitalized software

169

190

743

646

Amortization of intangible assets

90

43

221

174

Stock-based compensation

11

49

93

143

Gain on extinguishment of PPP Loan

-

-

-

(804)

Deferred tax asset valuation allowance

105

1,264

119

1,275

Non-GAAP net income

$

205

$

358

$

1,085

$

1,284

Per share data:

Basic

$

0.01

$

0.02

$

0.05

$

0.06

Diluted

$

0.01

$

0.01

$

0.04

$

0.05

Weighted average shares outstanding:

Basic

24,223

23,556

24,016

23,279

Diluted

25,701

25,474

25,561

25,232

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 Communications, Inc.



View source version on accesswire.com:
https://www.accesswire.com/732100/Altigen-Communications-Inc-Reports-Fourth-Quarter-and-Full-Year-Fiscal-2022-Results