Earnings release
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Back to the Newsroom Altigen Technologies Reports Full Year and Fourth Quarter Fiscal 2024 Results Topic: Earnings Thursday, 12 December 2024 04:05 PM 4 Quarter Revenues Hit a 12 Year High NEWARK, CA / ACCESSWIRE / December 12, 2024 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft Cloud Communications Solutions provider, announced today its financial results for the fourth quarter and year ended September 30, 2024. "This quarter demonstrates the effectiveness of Altigen's transformation initiatives," said Jeremiah Fleming, Altigen President & CEO. "We've streamlined operations, achieved consistent performance improvements, and are making tangible progress in bringing our AI solutions to market, paving the way for sustainable growth." Full Year Highlights (Fiscal 2024 versus Fiscal 2023) Net revenue was $13.6 million, compared with $13.7 million;Services revenue was $5.1 million, compared with $4.3 million;Cloud services revenue was $7.1 million, compared with $7.6 million;Gross margin decreased to 61.6%, compared with 63.2% in the previous year;GAAP net income totaled $1.6 million, with diluted EPS of $0.06, primarily dueto a $1.8 million non-cash tax-related benefit resulting from the release of thevaluation allowance for deferred tax assets;Non-GAAP net income and non-GAAP diluted EPS of $0.5 million and $0.02,respectively. th 1
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Fourth Quarter Highlights (Fiscal 2024 versus Fiscal 2023) Net Revenue was $3.7 million, compared with $3.5 million;Services revenue was $1.7 million, compared with $1.1 million;Cloud services revenue was $1.7 million, compared with $2.0 million;Gross margin increased to 63.9%, compared with 62.4% in the prior year;GAAP net income was $2.1 million, with diluted EPS of $0.08, driven primarily bythe previously mentioned non-cash, tax-related benefit of $1.8 million;Non-GAAP net income and non-GAAP diluted EPS of $0.5 million and $0.02,respectively. Select Financial Metrics: Fiscal 2024 versus Fiscal 2023 (in thousands, except for EPS and percentages) Fiscal 4Q24 Fiscal 4Q23 Change YTD FY2024F Total Revenue $3,736$3,482 7.3%$13,619$ Cloud Services 1,680 1,983 -15.3% 7,097 Services and Other 1,731 1,100 57.4% 5,159 Legacy Products 325 399 -18.5% 1,363 Software Assurance 315 353 -10.8% 1,293 Perpetual Software License 10 46 -78.3% 70 GAAP Operating Income/(Loss) $ 209$ 30 596.7%$ (305)$ Operating Margin 5.6% 0.9% -2.2% Non-GAAP Operating Income/(Loss) $ 228$ 58 293.1%$ (245)$ Non-GAAP Operating Margin 6.1% 1.7% -1.8% GAAP Net Income/(Loss) $2,079$(2,813) nm$1,560$ GAAP Income/(Loss) Per Share $0.08$(0.11) nm$ 0.06$ Non-GAAP Net Income $ 493$ 145 240.0%$ 467$ Non-GAAP Diluted Earnings Per Share $0.02$ 0.01 nm$ 0.02$ Adjusted EBITDA(1) $ 507$ 109 365.1%$ 495$ Cash Flow from Operations $ 641 $(236) nm$ 510$ nm = not measurable/meaningful; *may not add up due to rounding Throughout this release, the use of non-GAAP financial measures is intendedto provide useful information that supplements Altigen's results in accordancewith GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measureat the end of this release. Trended Financial Information (in thousands, except for EPS and percentages) Fiscal 1Q23 Fiscal 2Q23 Fiscal 3Q23 Fiscal 4Q23 Fis 1Q Total Revenue $3,460$3,373$3,366$3,482$3, Cloud Services 1,822 1,894 1,957 1,983 1, Services and Other 1,174 1,028 999 1,100 Legacy Products 464 451 410 399 Software Assurance 424 390 384 353 Perpetual Software License 40 61 26 46 GAAP Operating Income/(Loss) $(188)$ (131)$(147)$ 30$( Operating Margin -5.4% -3.9% -4.4% 0.9% - 1
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Non-GAAP Operating Income/(Loss) $ (156)$(101)$ (118)$ 58$( Non-GAAP Operating Margin -4.5% -3.0% -3.5% 1.7% - GAAP Net Income/(Loss) $(188)$(140)$(183)$(2,813)$( Non-GAAP Net Income/(Loss) $ 44$ 95$ 40$ 145$ Non-GAAP Diluted Earnings/ Loss Per Share $0.00$0.00$0.00$ 0.01 $( Adjusted EBITDA(1) $ 44$ 95$ 4$ 109$ Throughout this release, the use of non-GAAP financial measures is intendedto provide useful information that supplements Altigen's results in accordancewith GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measureat the end of this release. 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 (888) 506-0062 (domestic) or (973) 528-0011 (international), conference ID #182309. A live webcast will also be made available at www.altigen.com. To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #51729. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion. About Altigen Technologies Altigen Technologies (OTCQB: ATGN) is focused on driving digital transformation in today's modern workplace. Our Cloud Communications solutions and Technology Consulting services empower companies of all sizes to elevate customer engagement, increase employee productivity and improve operational efficiency. We're headquartered in Silicon Valley with operations strategically located in five countries spanning three continents. For more information, call 1-888-ALTIGEN or visit our website at www.altigen.com. Safe Harbor Statement This press release contains forward-looking information. The statements are based on reasonable assumptions, beliefs and expectations of management and the Company provides no assurance that actual events will meet management's expectations. Furthermore, the forward-looking statements contained in this press release are based on the Company's views of future events and financial performances which are subject to known and unknown risks and uncertainties including, but not limited to, statements regarding the Company's operational improvements, performance enhancements, AI solution development, and expectations for sustainable growth. There can be no assurances that the Company will achieve the expected results, and actual results may be materially different than expectations and from those stated or implied in forward-looking statements. Please refer to the Company's most recent Annual Report filed with the OTCQB over- the-counter market for a further discussion of risks and uncertainties. Any forward- looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The
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Company does not undertake any obligation to update any forward-looking statements. Contact: Carolyn David Vice President of Finance Altigen Communications, Inc. (408) 597-9033 www.altigen.com ALTIGEN COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (In thousands) September 30, 2024 September 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 2,575$ 2,641 Accounts receivable, net 1,770 1,495 Other current assets 185 236 Total current assets 4,530 4,372 Property and equipment, net - 3 Operating lease right-of-use assets 149 301 Goodwill 2,725 2,725 Intangible assets, net 1,242 1,568 Capitalized software development cost, net 1,363 1,215 Deferred tax asset 5,638 3,737 Other long-term assets 2 - Total assets $ 15,649$ 13,921 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 98$ 58 Accrued compensation and benefits 593 417 Accrued expenses 446 455 Deferred consideration - current 744 510 Operating lease liabilities - current 104 324 Deferred revenue - current 481 477 Total current liabilities 2,466 2,241 Deferred consideration - long-term - 208 Operating lease liabilities - long-term 49 - Deferred revenue - long-term 176 134 Total liabilities 2,691 2,583
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Stockholders' equity: Common stock 24 24 Treasury stock (1,565) (1,565) Additional paid-in capital 73,193 73,133 Accumulated deficit (58,694) (60,254) Total stockholders' equity 12,958 11,338 Total liabilities and stockholders' equity $ 15,649$ 13,921 ALTIGEN COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) Twelv Se 202 Cash flows from operating activities: Net income (loss) $ 1 Adjustments to reconcile net income to net cash from operating activities: Impairment of capitalized software Impairment of intangible assets Depreciation and amortization Deferred income tax expense ( Change in operating lease liabilities Amortization of intangible assets Amortization of capitalized software Stock-based compensation Changes in operating assets and liabilities: Accounts receivable and unbilled accounts receivable Prepaid expenses and other current assets Other long-term assets Accounts payable Accrued expenses Deferred revenue Net cash provided by operating activities Cash flows from investing activities: Capitalized software development costs Net cash used in investing activities Cash flows from financing activities: Payment related to business acquisition Proceeds from issuances of common stock Net cash used in financing activities Net decrease in cash and cash equivalents
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ALTIGEN COMMUNICATIONS, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASUR (In thousands, except per share data) Three Months Ended T September 30, 2024 2023 Reconciliation of GAAP to Non-GAAP Gross Profit: GAAP gross profit $ 2,386 $ 2,172 $ Amortization of capitalized software 56 124 Cash and cash equivalents, beginning of year 2 Cash and cash equivalents, end of year $ 2 ALTIGEN COMMUNICATIONS, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months EndedTwelve Mo September 30, Septem 2024 2023 2024 Net revenue $ 3,736$ 3,482$ 13,619 Gross profit 2,386 2,172 8,395 Operating expenses: Research and development 885 1,187 4,268 Selling, general & administrative 1,292 955 4,432 Operating income (loss) 209 30 (305 Interest expense (3) (37) (26 Interest and other income 16 1 52 Net income (loss) before provision for income taxes 222 (6) (279 Income tax benefit (expense) 1,857 (2,807) 1,839 Net income (loss) $ 2,079$ (2,813)$ 1,560 Per share data: Basic $ 0.08$ (0.11)$ 0.06 Diluted $ 0.08$ (0.11)$ 0.06 Weighted average shares outstanding: Basic 24,919 24,917 24,919 Diluted 25,903 24,917 25,959 (1) The Company's fourth quarter fiscal year 2024 results include a non-cash tax benefit of $1.8 million, resulting from the release of the valuation allowance for deferred tax assets, while the Company's fourth quarter fiscal year 2023 results include a non-cash tax expense of approximately $2.7 million, primarily due to differences between the Company's income tax rate and the statutory rate. (1)
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Amortization of acquired customer relationships 40 40 Non-GAAP gross profit $ 2,482 $ 2,336 $ Reconciliation of GAAP to Non-GAAP Expenses: GAAP operating expenses $ 2,177 $ 2,142 $ Asset impairment 142 - Depreciation and amortization - 1 Amortization of capitalized software 9 13 Amortization of intangible assets 6 6 Stock-based compensation 18 29 Non-GAAP operating expenses $ 2,002 $ 2,093 $ Reconciliation of GAAP to Non-GAAP Net Income: GAAP net loss $ 2,079 $ (2,813) $ Asset impairment 142 - Depreciation and amortization - 1 Amortization of capitalized software 65 137 Amortization of intangible assets 46 46 Stock-based compensation 18 29 Deferred tax asset valuation allowance (1,857) 2,745 Non-GAAP net income $ 493 $ 145 $ Per share data: Basic $ 0.02 $ 0.01 $ Diluted $ 0.02 $ 0.01 $ Weighted average shares outstanding: Basic 24,919 24,917 Diluted 25,903 26,122 Non-GAAP Financial Measures In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis. These non-GAAP financial measures exclude stock-based compensation expense, amortization of acquired intangible assets, depreciation and amortization expenses, acquisition-related costs, change in deferred tax asset valuation allowance, litigation costs and other non-recurring or unusual charges or benefits that may arise from time to time that we do not consider to be directly related to core operating performance. We use non-GAAP measures to evaluate the core operating performance of our business and to perform financial planning. Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results. We believe that these non- GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating: (i) the comparability of our on-going operating results over the periods presented and (ii) the ability to identify trends in our underlying business.