SAN JOSE, CA--(Marketwire - January 27, 2010) - AltiGen Communications, Inc. (
NASDAQ:
ATGN),
the leading provider of integrated Microsoft-based Unified Communications
solutions, today reported financial results for its fiscal 2010 first
quarter ended December 31, 2009.
First Quarter Financial Highlights:
-- First quarter revenue of $4.2 million
-- Gross margin improved to 66.6%
-- Net loss improved to $470,000
-- Ending cash balance increased to $7.6 million
Gilbert Hu, AltiGen's CEO, stated, "We are pleased with the growing success
of our conversion to an open software communications platform that is
enabling us to competitively serve the larger opportunity in the upper
mid-market. As we move upstream in the marketplace, we have experienced
some expected short-term trade off in our small systems revenue, but the
much larger opportunity we are seeing from our transition to larger systems
sales positions AltiGen to achieve long-term sustainable revenue growth as
a stronger, higher margin business."
Jeremiah Fleming, AltiGen's President and COO, stated, "The significance of
AltiGen's strategy can best be explained in comparison to the computer
industry. Most of the major computer hardware manufacturers that once
dominated that industry have now gone by the wayside as powerful
microcomputers and client/server software products were introduced. The
same situation is now taking place in the communications industry, as
evidenced by the rapid demise of once high-flying companies such as Nortel
and the emergence of Microsoft as a major software communications vendor.
"AltiGen's business strategy leverages this shifting trend in the
communications industry, through the development of leading software
applications while working closely with our strategic partners. As such, we
are focused on several key growth initiatives to drive our business
forward:
-- Continued expansion of our strategic partnerships with Fiserv in the
US and UnionPay in China to deploy our Unified Communications solutions to
their thousands of credit union and banking customers.
-- Enhanced integrations with Microsoft products to jointly address the
growing demand for software-based Unified Communications solutions.
-- A soon to be released revolutionary new business mobility solution.
"With an industry trending toward software-based communications solutions,
and our industry leading communications applications and ability to
leverage the strengths of major partners, we are very excited about the new
opportunities ahead."
Revenue for the fiscal 2010 first quarter was $4.2 million, compared to
revenue of $4.8 million in both the first quarter last year and the
preceding quarter. Gross margin in the first quarter increased to 66.6%,
compared to 60.9% a year ago and 65.1% in the preceding quarter. Operating
expenses totaled $3.3 million, a decrease from $4.3 million a year ago and
$3.9 million in the preceding quarter.
Net loss for the first quarter of fiscal 2010 was $470,000, or a loss of
$0.03 per share, compared to a net loss of $1.3 million, or a loss of $0.08
per share, in the first quarter of 2009 and a net loss of $729,000, or a
loss of $0.05 per share, in the preceding quarter. Total cash and cash
equivalents at December 31, 2009 were $7.6 million, up from $7.4 million at
September 30, 2009.
Phil McDermott, AltiGen's CFO, stated, "While revenue was weaker in the
quarter, we achieved continued sequential increase in gross margins and
reduction in expenses, and we ended the quarter with an increased cash
balance as a result of improved balance sheet management."
Earnings Conference Call
AltiGen will conduct a conference call with investment professionals at
2:00 p.m. Pacific Time (5:00 p.m. ET) today, January 27, 2010 to discuss
AltiGen's results of operations for the fiscal 2010 first quarter. Dial
(800) 894-5910 (domestic) or (785) 424-1052 (international) to listen in to
the call. The conference call ID is "AltiGen." A live webcast will also be
made available at
www.altigen.com. A telephonic replay will be available
approximately one hour after the call through January 29, 2010. To access
the replay, dial (800) 695-0715 or (402) 220-1423. 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. (
NASDAQ:
ATGN) is a leading provider of 100
percent Microsoft-based VoIP business phone systems and Unified
Communications solutions. Having more than 10,000 customers around the
world, AltiGen solutions are designed for high reliability, ease of
use, seamless integration to Microsoft infrastructure technologies, and are
built on a scalable, open standards platform. AltiGen's worldwide
headquarters is in Silicon Valley, California, with international
operations based in Shanghai, China. Local sales, service and support are
provided by AltiGen's worldwide network of over 300 certified partners. For
more information, call 1-888-ALTIGEN or visit the web site at
www.altigen.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934, including, without
limitation, statements regarding the continued market acceptance of our
Voice over IP telephone systems and our Call Center solutions, AltiGen's
successful transition to an open software communications platform, our
continued movement into larger systems sales opportunities, AltiGen's
ability to work effectively with UnionPay Co., Ltd in China and Fiserv in
the USA, continued integration with Microsoft products in the Unified
Communications market space, our ability to leverage the strengths of major
partners and our ability to deliver a revolutionary new business mobility
solution. These statements reflect management's current expectation.
However, actual results could differ materially as a result of unknown
risks and uncertainties, including but not limited to, risks related to
AltiGen's limited operating history. For a more detailed description of
these and other risks and uncertainties affecting AltiGen's performance,
please refer to AltiGen's Annual Report on Form 10-K for the fiscal year
ended September 30, 2009 and all subsequent current reports on Form 8-K and
quarterly reports on Form 10-Q. All forward-looking statements in this
press release are based on information available to AltiGen as of the date
hereof and AltiGen assumes no obligation to update these forward-looking
statements.
AltiGen Communications, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
First Quarter Ended
December 31
----------------------------
FY 2010 FY 2009
------------- -------------
Net Revenue $ 4,221 $ 4,860
Gross profit 2,810 2,962
Research and development 1,147 1,225
Selling, general & administrative 2,154 3,055
------------- -------------
Operating loss (491) (1,318)
Interest and other income, net 22 34
------------- -------------
Net loss before tax (469) (1,284)
Provision for income tax 1 (16)
------------- -------------
Net loss after tax $ (470) $ (1,268)
============= =============
Basic and diluted net loss per share (0.03) (0.08)
Weighted average shares outstanding 16,293 15,838
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
December 31, September 30,
2009 2009
-------------- --------------
Cash and cash equivalents $ 7,629 $ 7,397
Accounts receivable, net 1,083 1,545
Inventories 1,088 1,266
Other current assets 218 128
Net property and equipment 464 501
Other long-term assets 428 494
-------------- --------------
Total Assets $ 10,910 $ 11,331
============== ==============
Current liabilities $ 4,980 $ 5,342
Long-term liabilities 281 232
Stockholders' equity 5,649 5,757
-------------- --------------
Total Liabilities and Stockholders' Equity $ 10,910 $ 11,331
============== ==============