SOURCE: AltiGen Communications

AltiGen Communications

August 13, 2014 16:05 ET

AltiGen Communications, Inc. Reports Third Quarter Fiscal Year 2014 Financial Results

SAN JOSE, CA--(Marketwired - Aug 13, 2014) -  AltiGen Communications, Inc. (OTCQX: ATGN), a leading provider of premise and cloud-based IP-PBX and Contact Center solutions, announced today its third quarter ended June 30, 2014 financial results.

During the second quarter of fiscal year 2014, the Company made a strategic decision to discontinue and write-down its wholly-owned subsidiary business unit- China segment. As a result, the financial results from that business unit are reported as discontinued operations in the financial tables of this press release. Prior year results have been retrospectively revised to reflect the discontinued operations. The parent company will continue to report results as continued operations. 

Results from Operations
Revenue for the third quarter of fiscal 2014 was $2.2 million, compared to $2.7 million during the same period in fiscal 2013. Gross margin in the third quarter of fiscal 2014 was 69.8%, compared to 70.2% during the same period in fiscal 2013. Operating expenses for the third quarter of fiscal 2014 totaled $1.7 million, compared to $1.9 million during the same period in fiscal 2013.

Consolidated net loss for the third quarter of fiscal 2014 was $155,000, or a loss of $0.01 per share, compared to net loss of $369,000, or a loss of $0.02 per share during the third quarter of fiscal 2013. This includes operating loss from continuing operations of $152,000 for the three months ended June 30, 2014, as compared to $3,000 for the three months ended June 30, 2013.

For the nine-month period ending June 30, 2014, revenue was $7.1 million, compared to $8.4 million during the same period in fiscal 2013. Gross margin was 71.5% for the nine-month period of fiscal 2014, compared to 69.7% in the comparable period last year. Operating expenses decreased to $5.5 million in fiscal 2014 from $6.1 million in fiscal 2013.

Consolidated net loss for the nine months of fiscal 2014 was $778,000, or a loss of $0.03 per share, compared to net loss of $922,000, or a loss of $0.06 per share during the same period in fiscal 2013. This includes operating loss from continuing operations of $407,000 for the nine months ended June 30, 2014, as compared to $259,000 for the nine months ended June 30, 2013.

The Company had total cash and cash equivalents of $3.9 million from its continuing operations as of June 30, 2014.

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 (877) 407-8031 (domestic) or (201) 689-8031 (international). A live webcast will also be made available at http://www.altigen.com. To access the replay, dial (877) 660-6853 (domestic) or (201) 612-7415 (international), account #286 conference ID #13588302. 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. (OTCQX: ATGN) a leading provider of premise and cloud-based IP-PBX and Contact Center solutions headquartered in Silicon Valley, California. 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. 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 market acceptance of our premise and cloud-based IP-PBX and Contact Center solutions. 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 unknown risks and uncertainties, including but not limited to, risks related to AltiGen's limited operating history. For a more detailed description of AltiGen's performance, please refer to AltiGen's audited Annual Report filed with the OTCQX over-the-counter market for the fiscal year ended September 30, 2013. 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.

   
   
Condensed Consolidated Statement of Operations  
(Amount in thousands, except per share data)  
(unaudited)  
             
    Third Quarter Ended     Nine Months Ended  
    June 30,     June 30,  
    2014     2013     2014     2013  
Net Revenue   $ 2,247     $ 2,702     $ 7,103     $ 8,390  
Gross profit     1,569       1,896       5,080       5,851  
                                 
Research and development     695       766       2,184       2,279  
Selling, general & administrative     1,026       1,133       3,303       3,831  
                                 
Operating loss from continuing operations (1)     (152 )     (3 )     (407 )     (259 )
Operating loss from discontinued operations (2)     -       (363 )     (361 )     (653 )
Interest and other income, net     (3 )     (3 )     (9 )     (9 )
                                 
Net loss before income taxes     (155 )     (369 )     (777 )     (921 )
Provision for income tax     -       -       1       1  
Net loss after taxes   $ (155 )   $ (369 )   $ (778 )   $ (922 )
                                 
Basic and diluted net loss per share   $ (0.01 )   $ (0.02 )   $ (0.03 )   $ (0.06 )
Weighted average shares outstanding     23,399       16,732       23,399       16,732  
                                 
(1) Operating loss from continuing operations includes revenue generated from the following segments: North America and Rest of World.
(2) Operating loss from discontinued operations includes revenue generated from the China segment.
   
   
   
Condensed Consolidated Balance Sheets
(Amounts in thousands, except per share data)
 
    June 30, 2014 (Unaudited)   September 30, 2013 (Adjusted)     September 30, 2013 (Audited)
(1) (2)  
Cash and cash equivalents   $ 3,878   $ 2,942     $ 3,433
Accounts receivable, net     376     467       1,177
Inventories     826     1,020       1,323
Other current assets     118     164       282
Net property and equipment     156     122       125
Other long-term assets     31     -       88
Total Assets   $ 5,385   $ 4,715     $ 6,428
                     
Current liabilities   $ 4,894   $ 4,838     $ 5,834
Long-term liabilities     250     106       113
Stockholders' equity     241     (229 )     481
                     
Total Liabilities and Stockholders' Equity   $ 5,385   $ 4,715     $ 6,428
                     
(1) In connection with the discontinued China operations, a write-down of approximately $6.7 million was recorded during the second quarter of fiscal 2014, which includes investments, accounts receivables and other assets and liabilities. The resulting write-down had no impact on our cash and cash equivalents.
(2) Prior year results have been retrospectively revised to reflect the discontinued China operations for comparison purposes.