SOURCE: AltiGen Communications

AltiGen Communications

July 20, 2011 16:05 ET

AltiGen Communications, Inc. Reports Third Quarter Fiscal 2011 Financial Results

SAN JOSE, CA--(Marketwire - Jul 20, 2011) - AltiGen Communications, Inc. (OTCQX: ATGN) (PINKSHEETS: ATGN), the leading provider of integrated Microsoft-based Unified Communications solutions, today announced results for its fiscal 2011 third quarter ended June 30, 2011.

Financial Results

Net revenue for the third quarter was $4.5 million, an increase of 8% from the $4.2 million reported in the second quarter of fiscal 2011, and an increase of 8% from the $4.2 million reported in the comparable period last year.

Gross margin in the third quarter of fiscal 2011 was 64.7%, compared to 67.3% in the preceding quarter, and compared to 68.1% for the same period in fiscal 2010. Operating expenses totaled $3.8 million, compared to $3.4 million reported in the preceding quarter, and compared to $3.1 million for the prior year's second quarter.

Net loss from continuing operations for the third quarter of fiscal 2011 was $892,000, or $0.05 per share. This compares with a net loss of $576,000, or $0.03 per share, in the second quarter, and a net loss of $259,000, or $0.02 per share during the third quarter of fiscal 2010. Total cash and cash equivalents, plus short term investments at June 30, 2011 were $5.3 million, compared to $6.2 million at March 31, 2011.

The Company reported revenue for the nine-month period of $13.3 million, an increase of 4% compared to $12.8 million for the comparable period last year. Net loss for the nine month period was $1.8 million, or $0.11 per share compared to net loss of $1.1 million, or $0.07 per share for the comparable period last year.

New Product

Last quarter we announced our revolutionary new smartphone communications docking station, the iFusion SmartStation, at MacWorld in San Francisco. The iFusion integrates a "traditional" desktop phone handset and full duplex speakerphone to smartphones, enabling organizations to replace the need for desktop office phones while also addressing the requirements of mobile and remote employees. During the third quarter of fiscal 2011, we completed a successful rollout of our new iFusion SmartStation, which made a modest initial contribution to our top-line during the quarter. The iFusion has been well received in the market place and the Company expects shipments will continue to increase in the fourth quarter and beyond.

Jeremiah Fleming, AltiGen's President and Chief Executive Officer, stated, "We are very excited about the positive momentum generated by our new Unified Mobile Convergence solutions, which include the iFusions and our new MaxMobile UC apps for smartphones. We expect this momentum to continue to build as we drive these solutions into the enterprise and service providers markets."

Conference Call

AltiGen will conduct a conference call with investment professionals at 2:00 p.m. Pacific Time (5:00 p.m. ET) today, July 20, 2011 to discuss AltiGen's results of operations for its third quarter fiscal 2011. Dial (877) 407-8031 (domestic) or (201) 689-8031 (international) to listen in to the call. A live webcast will also be made available at www.altigen.com. To access the replay, dial (877) 660-6853 (domestic) or (201) 612-7415 (international), account #286 conference ID #376008. 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. (PINKSHEETS: ATGN) (OTCQX: ATGN) is a leading provider of 100% 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

The Forward-looking statements contained in this press release are based upon the Company's current expectations, beliefs, plans and assumptions, which are subject to a number of risks and uncertainties including, but not limited to: statements regarding the continued market acceptance of our 100 percent Microsoft-based business phone systems; continued market acceptance of our Unified Mobile Convergence solutions, which includes the iFusions, MaxMobile UC apps for smartphones and our expectation that shipments will continue to increase in the fourth quarter and beyond. Our expectations and beliefs regarding these matters may not materialize. Actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in AltiGen's filings with the Securities and Exchange Commission, including our annual report filed on Form 10-K for the fiscal year ended September 30, 2010. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. Forward-looking statements speak only as of the date the statement was made. The Company does not undertake any obligation to update any forward-looking statements.


AltiGen Communications, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
Third Quarter Ended Nine Months Ended
June 30, June 30,
FY 2011 FY 2010 FY 2011 FY 2010
Net Revenue $ 4,538 $ 4,199 $ 13,326 $ 12,841
Gross profit 2,935 2,859 8,864 8,593
Research and development 1,793 1,113 4,663 3,347
Selling, general & administrative 2,051 2,006 6,071 6,338
Operating loss (909 ) (260 ) (1,870 ) (1,092 )
Interest and other income, net 17 1 32 24
Net loss before tax (892 ) (259 ) (1,838 ) (1,068 )
Provision for income tax - - 1 1
Net loss after tax $ (892 ) $ (259 ) $ (1,839 ) $ (1,069 )
Basic and diluted net loss per share (0.05 ) (0.02 ) (0.11 ) (0.07 )
Weighted average shares outstanding 16,586 16,453 16,520 16,391
June 30, 2011 September 30, 2010
Cash and cash equivalents $ 3,148 $ 3,776
Short-term investments 2,156 2,748
Accounts receivable, net 1,632 1,018
Inventories 1,769 1,385
Other current assets 290 345
Net property and equipment 789 613
Other long-term assets 506 476
Total Assets $ 10,290 $ 10,361
Current liabilities $ 6,269 $ 5,085
Long-term liabilities 431 469
Stockholders' equity 3,590 4,807
Total Liabilities and Stockholders' Equity $ 10,290 $ 10,361