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 (888) 506-0062 (domestic) or (973) 528-0011 (international), conference ID #526216. 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 #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. (408) 597-9033 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.
