AltiGen Communications, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
Fourth Quarter Ended Year Ended
September 30 September 30
------------------ ------------------
FY 2008 FY 2007 FY 2008 FY 2007
-------- -------- -------- --------
Net Revenue $ 5,113 $ 5,190 $ 18,897 $ 17,888
Gross profit 2,985 2,929 10,838 9,765
Research and development 1,129 871 4,216 3,373
Selling, general & administrative 2,746 2,314 10,874 7,774
-------- -------- -------- --------
Operating loss (890) (256) (4,252) (1,382)
Interest and other income, net 80 112 315 457
-------- -------- -------- --------
Net loss before tax $ (810) $ (144) $ (3,937) $ (925)
Provision for income tax - - - 11
-------- -------- -------- --------
Net loss after tax $ (810) $ (144) $ (3,937) $ (936)
======== ======== ======== ========
Basic and diluted net loss per
share $ (0.05) $ (0.01) $ (0.25) $ (0.06)
Weighted average shares outstanding 15,777 15,651 15,745 15,363
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
September 30, September 30,
2008 2007
------------- -------------
Cash and cash equivalents $ 9,467 $ 6,111
Short-term investments 400 3,796
Accounts receivable, net 2,423 2,656
Inventories 1,594 1,567
Other current assets 176 237
Net property and equipment 423 506
Other long-term assets 293 377
------------- -------------
Total Assets $ 14,776 $ 15,250
============= =============
Current liabilities $ 5,373 $ 2,816
Long-term deferred rent 105 $ 89
Stockholders' equity 9,298 12,345
------------- -------------
Total Liabilities and Stockholders' Equity $ 14,776 $ 15,250
============= =============
AltiGen Communications Reports Fiscal 2008 Fourth Quarter and Year End Results
Positive Cash Flow From Operations in Fourth Quarter; Record Fiscal 2008 Revenue of $19 Million, Up 6% From Fiscal 2007
| Source: AltiGen Communications
FREMONT, CA--(Marketwire - November 12, 2008) - AltiGen Communications, Inc. (NASDAQ : ATGN ), a
leading provider of VoIP business phone systems and Unified Communications
solutions for small-to-medium businesses (SMBs), today reported financial
results for its fiscal 2008 fourth quarter and year ended September 30,
2008.
Gilbert Hu, AltiGen's CEO, stated, "We grew full year revenue to $19
million in fiscal 2008, a six percent increase over fiscal 2007, despite
the challenging economic environment. The increase in net loss for the
year reflects the strategic investments we made as part of our growth plan.
We continue to focus on increasing recurring revenue through new revenue
sources such as our software assurance and premier service plans, which are
being driven by our enhanced product offerings. At September 30, 2008,
deferred revenue from our service plans was $1.7 million."
Jeremiah Fleming, AltiGen's President and COO, stated, "We continue to
focus on execution of our growth plan and are starting to see the benefits
of the strategic investments we have been making in product development and
sales and marketing to drive new revenue growth. Our recently launched MAX
Communications Server 6.0, which is our next generation VoIP phone system
and unified communications solution, began shipping in October. This new
software based VoIP solution is completely integrated with Microsoft's
Unified Communications offering and offers significantly enhanced
scalability that opens new and sizable market opportunities for AltiGen to
serve larger, more strategic resellers and customers. Our new product gives
us an enterprise level solution that presents a significant return on
investment to companies looking to reduce costs in these difficult economic
times.
"Furthermore, during the year we signed up 75 new reseller partners who
began ramping up to sell our new product. We look forward to their
increased contribution as we move into fiscal 2009 with our new enterprise
level solution. Going forward, we believe the significant cost benefits of
our highly competitive and scalable new solutions will create increasing
opportunities to capture additional market share, especially within the
current economic environment."
Financial Results
Revenue for the fiscal 2008 fourth quarter was $5.1 million, compared to
$5.2 million in the fourth quarter a year ago and $4.8 million in the
preceding quarter. Gross margin was 58.4 percent, compared to 56.5 percent
a year ago and 58.8 percent in the preceding quarter. Operating expenses
totaled $3.9 million, compared to $3.2 million a year ago and $3.9 million
in the preceding quarter, reflecting the increased investment in research
and development and sales and marketing.
Net loss for the fourth quarter was $810,000, or a loss of $0.05 per share,
compared to a net loss of $144,000, or a loss of $0.01 per share in the
fourth quarter a year ago, and a net loss of $1.0 million, or a loss of
$0.07 per share, in the preceding quarter.
Phil McDermott, AltiGen's CFO, stated, "We achieved positive cash flow in
the fourth quarter, reflecting the cash contribution from our support
programs, and continue strong management of cash as we focus on reaching
profitability. We ended the fourth quarter with cash and short-term
investments of $9.9 million, a $400,000 increase over the third quarter,
and have no long-term debt."
Revenue for the fiscal 2008 full year was $19.0 million, compared to $17.9
million for fiscal 2007. Net loss for fiscal 2008 was $3.9 million, or a
loss of $0.25, compared to a net loss of $936,000, or a loss of $0.06 per
share, for fiscal 2007.
Stock Repurchase Program
In November 2008, the board authorized a one year extension of the
Company's repurchase program of up to $2.0 million of shares of AltiGen's
common stock. Since inception of the program through September 30, 2008,
AltiGen repurchased 231,135 shares of common stock for approximately
$367,000. The program is approved through November 2009.
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, November 12, 2008, to discuss
AltiGen's results of operations for the fourth quarter. Dial (800) 862-9098
(domestic) or (785) 424-1051 (international) to listen in to the call. The
conference call ID is "7AltiGen." 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 November 14, 2008. To access
the replay, dial (800) 723-8184 or (402) 220-2668. 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 VoIP
business phone systems and Microsoft-based Unified Communications solutions
for small-to-medium businesses (SMBs), including companies with multiple
distributed locations, branch offices and call centers. AltiGen's scalable,
integrated, and easy to manage all-in-one unified communications solutions
enable an array of applications like standards based SIP VoIP phones and
servers, unified messaging, voicemail, call recording, conferencing, call
activity reporting and mobility solutions that leverage both the Internet
and the public telephone network to take advantage of the convergence of
voice and data communications. AltiGen's systems are designed with an open
architecture and are built on an industry standard platform. This adherence
to widely used standards allows products to integrate with and leverage the
existing technology investment of partners and customers. 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, the successful introduction of our new MAX
Communications Server 6.0, and our ability to achieve profitability. 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, 2007 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.