AltiGen Communications, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
Second Quarter Ended Six Months Ended
March 31 March 31
-------------------- --------------------
FY 2009 FY 2008 FY 2009 FY 2008
--------- --------- --------- ---------
Net Revenue $ 3,578 $ 4,712 $ 8,437 $ 8,972
Gross profit 2,107 2,619 5,069 5,025
Research and development 1,243 1,035 2,468 1,950
Selling, general &
administrative 2,651 2,787 5,706 5,364
--------- --------- --------- ---------
Operating loss (1,787) (1,203) (3,105) (2,289)
Interest and other income,net 20 76 53 191
--------- --------- --------- ---------
Net loss before tax (1,767) (1,127) (3,052) (2,098)
Provision for income tax - - (16) -
--------- --------- --------- ---------
Net loss after tax $ (1,767) $ (1,127) $ (3,036) $ (2,098)
========= ========= ========= =========
Basic and diluted net loss per
share $ (0.11) $ (0.07) $ (0.19) $ (0.13)
Weighted average shares
outstanding 15,862 15,708 15,842 15,753
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
March 31, 2009 September 30, 2008
------------------ ------------------
Cash and cash equivalents $ 5,955 $ 9,467
Short-term investments 2,500 400
Accounts receivable, net 1,098 2,423
Inventories 1,971 1,594
Other current assets 282 176
Net property and equipment 452 423
Other long-term assets 287 293
------------------ ------------------
Total Assets $ 12,545 $ 14,776
================== ==================
Current liabilities $ 5,726 $ 5,374
Long-term liabilities 126 105
Stockholders' equity 6,693 9,297
Total Liabilities and Stockholders' ------------------ ------------------
Equity $ 12,545 $ 14,776
================== ==================
AltiGen Communications Reports Second Quarter Fiscal 2009 Results
| Source: AltiGen Communications
FREMONT, CA--(Marketwire - April 22, 2009) - AltiGen Communications, Inc. (NASDAQ : ATGN ), a
leading provider of 100 percent Microsoft-based VoIP business phone systems
and Unified Communications solutions, today reported financial results for
its fiscal 2009 second quarter ended March 31, 2009.
Gilbert Hu, AltiGen's CEO, stated, "The difficult economy has clearly
impacted second quarter revenue, which primarily reflects a slowdown in
sales of new systems. However, we continue to make solid progress with our
strategic transition to larger systems sales and see growth opportunities
ahead. While service revenue remained essentially flat compared to the
preceding quarter, we expect to see increased renewals and growth going
forward."
Jeremiah Fleming, AltiGen's President and COO, stated, "We remain focused
on our strategic efforts to drive increased adoption of larger systems, and
are well positioned to address new business opportunities in midsized to
larger enterprises that increasingly seek both highly functional and
scalable solutions and competitive cost advantages. We continue to sign
larger, strategic resellers that are excited about our new enterprise class
products and integration with Microsoft's Unified Communications solution,
which will continue to ramp up their contribution over the course of this
year. We are also augmenting these efforts by targeting direct sales
opportunities in larger businesses."
"To better align our cost structure with the current environment, we have
taken significant actions in the second quarter to reduce our expenses.
These actions include cost reductions across all departments, a reduction
in headcount, and salary reductions for most employees including a 15
percent reduction for executive management. Looking forward, we are
focused on execution of our strategic plan and reaching our objective of
achieving and maintaining positive cash flow by the end of our fiscal year.
With our new scalable products, growing base of larger resellers and
increasing contribution from our direct sales activities, we see continued
market opportunity and growth ahead."
Financial Results
Revenue for the fiscal 2009 second quarter was $3.6 million, compared to
revenue of $4.7 million in the second quarter a year ago and $4.9 million
in the preceding quarter. Gross margin in the second quarter was 58.9
percent, compared to 55.6 percent a year ago and 60.9 percent in the
preceding quarter. Operating expenses totaled $3.9 million, compared to
$3.8 million a year ago and $4.3 million in the preceding quarter.
Net loss for the second quarter of fiscal 2009 was $1.8 million, or a loss
of $0.11 per share, compared to a net loss of $1.1 million, or a loss of
$0.07 per share in the second quarter a year ago, and a net loss of $1.3
million, or a loss of $0.08 per share, in the preceding quarter.
Phil McDermott, AltiGen's CFO, stated, "We ended the quarter with $8.5
million in cash and short term investments and no long term debt. As a
result of our cost reduction actions, we expect to realize cost savings of
approximately $900,000 per quarter going forward compared to the fiscal
first quarter."
For the six months ended March 31, 2009, revenue was $8.4 million, compared
to $9.0 million in the year ago period. Gross margin was 60 percent,
compared to 56 percent. Operating expenses totaled $8.2 million, compared
to $7.3 million. Net Loss was $3.0 million, compared to $2.1 million in
the year ago period.
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. During the second quarter, AltiGen repurchased approximately
13,400 shares of common stock under the repurchase program. Since
inception of the program through March 31, 2009, AltiGen repurchased
255,000 shares of common stock for approximately $385,500. Effective April
1, 2009, the buyback program has been indefinitely suspended.
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, April 22, 2009 to discuss
AltiGen's results of operations for the second 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 April 26, 2009. To access the replay, dial
(800) 283-4641 or (402) 220-0851. 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%
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, the continued success of our service plan
offering, the success of our direct selling efforts, our continued market
penetration of larger resellers and our ability to achieve cash flow
positive by our fiscal year end. 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, 2008 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.