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AltiGen Communications Inc (QB)

AltiGen Communications Inc (QB) (ATGN)

0.674087
0.00409
(0.61%)
Closed July 14 4:00PM

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LigmaWarrior LigmaWarrior 11 months ago
The company under ATGN called ZAACT consulting recently landed a $12 million contract and there's literally no news on it. Since earnings are due this week my guess is that Fleming is going to announce it in his call.
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KeepOn KeepOn 3 years ago
Which piece is missing from this puzzle?
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Hooparena Hooparena 3 years ago
I still have the stock on my screen and radar but was disappointed in the last earnings report. Right now the stock appears to have flatlined and I don't see much movement. I sold a little to early (still made a nice profit) but if a significant selloff should happen then I would consider jumping back in. I would need to see earnings show some growth again before considering getting in on a valuation basis. I believe the stock is fairly valued but I haven't seen anything to grab my interest in owning it again currently.
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blindman28 blindman28 3 years ago
are you still following this closely? LAst earnings where somewhat disappointing i was actually hoping for more of a sell off.

I still like the long term play here but i don't see the stock doing much over the next 6 months. probably just flatlines
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Hooparena Hooparena 4 years ago
Here's your breakout if you were lucky enough to be owning it right now. Where's the top, who knows?
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Hooparena Hooparena 4 years ago
I guess the earnings were better than expected. Nice small pop today which should bode well going forward. If it can break through $2.50, then should see a nice run. Rather sit it out and see it if can break resistance before thinking about jumping in.
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Hooparena Hooparena 4 years ago
Earnings out, nothing to get excited about in my opinion.

https://www.otcmarkets.com/stock/ATGN/news/Altigen-Communications-Inc-Reports-2020-Fourth-Quarter-and-Full-Year-Results?id=282398

Glad to be on the sidelines
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Hooparena Hooparena 4 years ago
Interest is picking up so it could be interesting soon. Just not sure which way it will head.
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Hooparena Hooparena 4 years ago
No interest or volume currently to jump back in at this time.
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Hooparena Hooparena 4 years ago
I have been expecting an uptrend in users especially with COVID, but there still isn't anything that has changed my view to jump back in yet. Still have my eyes on it.
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blindman28 blindman28 4 years ago
Microsoft teams announced they went for 75 million ACTIVE users to 115 million https://www.windowscentral.com/microsoft-teams-surges-115-million-daily-active-users-75-million-april

i wonder if ATGN can take advatnge
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Hooparena Hooparena 4 years ago
I have been watching closely lately but the lack of volume and interest is alarming due to the comparison of previous volume and interest which caused the run up. Still on my radar for another possible run but just going to sit on the sidelines for the moment unless we see a restless seller getting edgy and putting some pressure on it and then maybe I will jump in to buy some cheap shares.
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blindman28 blindman28 4 years ago
We might be able to get in again haha. Looking like a great buy below $2.00
would of loved to pick some up on the sell off.

The only thing that scares me a little is the on going litigation with some very small companies. It looks like they owe $1.5 million to a company called CTI. & another company called IntelliTalk (2 employees) is suing them from 2019 and is on going.

Good news is ATGN has 6.1 million in cash so its not that big of a deal. It is just going to put a damper on short term earnings.

This past Q should of been $620k in Net Income compared to $571k in same Q last year. but they had a $188k litigation cost.

Still 3 million in Rev compared to 2.65 million from last year Q is encouraging still. that is a 13% increase YOY

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Hooparena Hooparena 4 years ago
Congrats to you. Always happy to hear when someone makes a profit.
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blindman28 blindman28 4 years ago
i got out today at $2.35. insane run up but i think its at fair value now. Although I will look to get back in on any significant dip....Also if they
for some reason to drop news saying about an uplist to the Nasdaq it probably goes to $3.00 easily
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Hooparena Hooparena 4 years ago
Congrats, happy for you! Glad to be able to help.
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blindman28 blindman28 4 years ago
100+% gains in 5 months. all because you posted randomly at 5 am in the morning one day and i woke early and decided to scroll the investor hub active boards lol
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blindman28 blindman28 4 years ago
I sold at $1.75 and got back in at $1.68 luckily. When you say GL to all you mean good lucky to me haha. since I'm the only other person on the board......

ATGN still trails CXDO by 3x the market cap with basically the same numbers. Until ATGN catches up or CXDO comes back down im going to hold. ATGN is still undervalued in the industry.
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Hooparena Hooparena 4 years ago
Well I guess my prediction could be right of a stock price of $2.50 - $3.00 and I was wrong to get out predicting a possible pullback. GLTA
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Hooparena Hooparena 4 years ago
Still like the company but was surprised the earnings weren't a little better. I sold my position because of the earnings but it could have been a hiccup due to the COVID crisis. Looking to jump back in if a pullback happens. I still see the stock could go to the $2.50 - $3.00 price range.
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blindman28 blindman28 4 years ago
still extremely under the radar stock/company here. I guess slow and steady.
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blindman28 blindman28 4 years ago
ATGN has been betting on growth of Microsoft Teams for years now. Here is a recent article showing Microsoft teams numbers https://www.geekwire.com/2020/microsoft-teams-hits-44m-users-huge-37-growth-spike-1-week-amid-remote-work-surge/
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Hooparena Hooparena 4 years ago
Blindman, all your observations are true. This company is a hidden gem. The cloud business in this COVID crisis is a major growth business sector. Today could be the day we get some push to the upside with Microsoft's great earnings yesterday.

I see at least $2.00 to be a reasonable price for this stock. The one appeal of this stock is that it does good block trades of 5,000 shares at a time routinely so it trades enough especially with only a float of 23 million shares. I think we will see $1.75 by the end of this week.
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blindman28 blindman28 4 years ago
The thing is ATGN is so far under the radar its not even a blip.:

Including me and you their is like 5 total people currently following ATGN that i can see through yahoo, here, twitter, etc. And i seem to be the newest person......

at least we had 2 people ask questions on the conference call. ....lol

ATGN has no coverage from any analyst.

CXDO actually has legit (albeit small) analyst coverage from investors which helps them get some exposure.

We had really big bids today at 1.40$ level and nothing got filled which is a good sign.

Also something very intriguing i noticed this week the market maker PUMA is on the top bid but not on the top ask. PUMA is not retail or a single investor. It is usually some sort of institution. When PUMA is top bid and not on the ask it is a really great sign in doing research over the years
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Hooparena Hooparena 4 years ago
Right now we are taking a breather for the day, but I am confident we will be above $1.75 and closer to $2.00 by the end of the week.
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blindman28 blindman28 4 years ago
maybe but i don't see any reason we shouldn't be trading above 1.75$ given the evaluations of other companies in this sector. And that ATGN is in a better growth spot now than when it was trading at all time highs in Jan
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Hooparena Hooparena 4 years ago
$2.00 coming next week? Unless the market takes a huge downside hit with some earthshattering bad news, we are back in an upward trend.
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Hooparena Hooparena 4 years ago
Blindman.....the quarter came in the area I expected as I stated in a previous post. I was hoping for a little more surprise on the plus side, but on the conference call they lost a few of the smaller customers due to the financial distress from the COVID crisis. On the plus side, they were able to pick up some new customers to replace the lost ones due to COVID. The CEO stated that there was more potential for more business from these new customers and from the new deal they stated today. Overall, I think it was a good call and we will see some updraft going forward. I think we could be above $1.50 tomorrow.
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blindman28 blindman28 4 years ago
Very Good but not great Quarter: Looking through the Press Release. IMO

Positive: Cloud service Revenue was up 18%. This is what Investors want to see in the UCaas Space. Cash increased by 15% from previous quarter. Cash Flow increased by 10%.

They also announced a partnership with a cyber security company https://www.home.neustar/ . This shows imo they are trying to grow.

Also Business and earnings was not affected negatively by Covid at all. Which is rare to find.

Neutral: Net income was flat compared to last quarter. but was still up 23%
compared to same quarter last year.

Negative: Gross Profit MArgin Decreased. but is still higher than competitors at 76.8%... this really isnt that much of a negative.
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Hooparena Hooparena 4 years ago
Blindman...thanks for the info. I didn't even know about CXDO so using those numbers makes ATGN a hidden gem in my opinion. I am anxious to see the earnings tomorrow. Best of luck.
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blindman28 blindman28 4 years ago
CXDO which is a competitor in the OTC Market exchange is trading near 90 P/E ratio.Yes they have higher rev growth but ATGN is just as profitable if not more and is growing as well. ATGN P/E is around 17

CXDO is at all time highs. CXDO shar price dropped from $4.50 to $3 and is now $6.

ATGN was around $1.70 dropped to $1.00 and is now only $1.20.

ATGN has better Gross Profit Margin 80% and more Cash on hand 4.5 million

CXDO market cap is 90 million ATGN is 27 million

Both companies are in the UCaaS space.

This Space is not affected from Covid

Here is an article detailing more numbers.


https://seekingalpha.com/article/4337742-crexendo-strategy-created-opportunity-for-explosive-growth?utm_campaign=twitter_automated&utm_content=article&utm_medium=social&utm_source=twitter_automated
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Hooparena Hooparena 4 years ago
Earnings come out on Thursday, April 23rd after the stock market closes.
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blindman28 blindman28 4 years ago
I might of been wrong about earnings coming out today. Even if Thinkorswim said it did.

Previous reports have come between the 16th and 22nd of the month
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Hooparena Hooparena 4 years ago
Heading to $2.00+?

If we get earnings of .05 or better in this COVID crisis, we are going to $2.00 a share at least.

Just my opinion
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Hooparena Hooparena 4 years ago
Blindman.....I think any loss would be a disappointment even with the COVID crisis happening. Any profit margin of .01-.04 per share would be nice considering the world crisis and that is what I am expecting based on past earnings and growth. Anything over $.05 share is super at this time.

Just my opinion, fingers crossed for a surprise.
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blindman28 blindman28 4 years ago
Earnings come out in 2 days. In your opinion what would be bad/neutral/good results?
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Hooparena Hooparena 4 years ago
When a stock market collapses and people want to liquidate, they sell what they can first without taking losses if possible. Since the stock was trading at all-time highs, everyone selling is in a profit situation. Human instinct has us holding on to our losses for the hope to at least break even. I hate selling at a loss if possible so I would hold on to my losers and take profits in other stocks and wait for them to come back down to a lower level to jump back in like ATGN. Since the COVID situation is a crisis we haven’t seen (meaning an illness and not a financial) like in 2008, we are in uncharted waters with how we trade the market. Like I started in my previous post, this $1.00 - $1.10 level seems to have exceptional strength. I have been adding at this level because I believe the stock is cheap here and the company will pick up a lot of additional business in the upcoming quarters due to the COVID crisis. I hope that answers your question.
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blindman28 blindman28 4 years ago
Thats the thing i dont get though. The covid crisis is at worst a neutral for this company. But at best is a huge positive and catalyst for new clients
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Hooparena Hooparena 4 years ago
The stock had a nice run in early 2019 to the $1.10 - $1.30 level and created a nice base there. Then it took off to the $1.70 level and was trading very nicely and it was making a new 52 week high every few days before the COVID-19 crisis hit so the stock retracted to that $1.10 level.

So I think anyone selling below this level is probably selling at a loss so I believe we will hold this level going forward. It will be interesting to see if they pick up new business due to the crisis currently in the next earnings report.
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blindman28 blindman28 4 years ago
did i finally find a hidden gem?

Curious, this is a legit company after researching it all morning before i bought in today. Why in your opinion has this dropped from trading above $1.30 last 3 months? Thanks for your random post because i would of never found it.

They have been a growing and PROFITABLE company for a while now and a well run business. And due to the Circumatances surrounding the coronavirus this should only accelerate that growth.

They where in the work from home software business before this all happened ed.

Ofcourse i bought in today an the price drops.....

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Hooparena Hooparena 4 years ago
Takeover candidate?.....This is a bit of a reach, but could ATGN see a takeover play for the company? With the current COVID crisis and this company being profitable, could Microsoft or another company make a bid for ATGN? This company sure is a solution provider for the social distancing issues we are facing and with the low share float, low share price and profitability, it could be ripe for the taking.

Just a far fetched thought at the moment, but I believe it could be in demand in these challenging times. There appears to be quite a few buyers at the current price level between $.90 - $1.10.

I would expect the next earnings report would be better than anticipated.
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sopelote sopelote 4 years ago
ATGN..... long quiet multi year base , small float in strong hands , now in uptrend , waiting for April earnings report which will be very good now that the second stage of earnings growth is kicking in.
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sopelote sopelote 4 years ago
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sopelote sopelote 4 years ago
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Hooparena Hooparena 4 years ago
Altigen Communications, Inc. Reports First Quarter Results for Fiscal Year 2020Press Release | 01/22/2020
MILPITAS, CA / ACCESSWIRE / January 22, 2020 / Altigen Communications, Inc. (OTCQB:ATGN), a Silicon Valley based Microsoft ISV and Cloud Solutions provider, announced today its financial results for the first quarter ended December 31, 2019.
Adoption of the New FASB Lease Accounting Standard (ASC 842)
The Company adopted the new ASC 842 lease accounting standard in the first quarter of 2020, which resulted in the recognition of "Operating right-of-use assets" of $1.1 million and "Operating lease liabilities" of $1.1 million, a portion of which is in current liabilities, as of December 31, 2019. There was no impact on the Company's consolidated statements of operations or cash flows. Refer to our upcoming Quarterly Report for further details.
Financial Results
Net Revenue: Total revenue for the first quarter of fiscal 2020 was $2.84 million, compared to $2.66 million in the preceding quarter, and compared to $2.78 million in the prior year quarter. First quarter revenue consisted of:
β€’ Cloud services revenue of $1.7 million, representing an increase of 7% and 17%, respectively, compared to the preceding quarter and the prior year period.
β€’ Software assurance revenue of $722,000, representing an increase of 1% and a decrease of 7%, respectively, compared to the preceding quarter and the prior year period.
β€’ Software license revenue of $204,000, representing a decrease of 23% and 55%, respectively, compared to the previous quarter and the prior year period.
β€’ Professional services and other revenue of $214,000, representing an increase of 145% and 139%, respectively, compared to the preceding quarter and the prior year period.
Gross Margin: Gross margin in the first quarter of fiscal 2020 was 77.6%, compared to 80.3% in the preceding quarter, and compared to 82.9% in the prior year quarter. The decrease was primarily driven by higher amortization of capitalized software and acquisition related costs, and to a lesser extent, a shift in our product mix.
GAAP Net Income: For the first quarter of fiscal 2020, GAAP net income was $502,000, or $0.02 per diluted share, compared with GAAP net income of $290,000, or $0.01 per diluted share in the preceding quarter, and compared with GAAP net income of $612,000, or $0.02 per diluted share in the same period in 2019. As previously disclosed, the Company's fourth quarter fiscal 2019 financial results include a non-cash tax expense of approximately $285,000. The tax expense differs from the federal statutory rate of 21% primarily due to an increase in the amount of net operating losses expected to be utilized before expiration.
Non-GAAP Net Income: Non-GAAP net income for the first quarter of fiscal 2020 was $621,000, or $0.02 per diluted share, compared with non-GAAP net income of $635,000, or $0.02 per diluted share in the preceding quarter, and compared with non-GAAP net income of $736,000, or $0.03 per diluted share in the same period a year ago, representing a slight decrease of 2% and 16%, respectively, primarily as a result of lower gross margin.
GAAP Operating Expenses: GAAP operating expenses totaled $1.7 million for the first quarter of fiscal 2020, compared with $1.6 million in the preceding quarter, and compared with $1.7 million during the same period a year ago.
Non-GAAP Operating Expenses: Non-GAAP operating expenses for the first quarter of fiscal 2020 totaled $1.7 million, compared with $1.6 million in the preceding quarter, and $1.6 million in the comparable period last year.
Balance Sheet
As of December 31, 2019, cash and cash equivalents totaled $4.4 million and working capital was $3.4 million.
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. The excluded items represent stock-based compensation expense, depreciation and amortization expenses and other non-recurring or unusual items 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.
The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:
Stock-based compensation expense
Stock-based compensation expense is impacted by the Company's future hiring and retention needs and the future fair market value of the Company's common stock, all of which are difficult to predict and subject to constant change. Furthermore, stock-based compensation expense is generally fixed at the time of grant, then amortized over a period of several years, and generally cannot be changed or influenced by management after the grant. The Company believes that the exclusion of stock-based compensation expense assists investors in the comparisons of operating results to peer companies. Stock-based compensation expense can vary significantly based on the timing, size and nature of awards granted.
Depreciation and amortization expenses
Depreciation and amortization expense includes the depreciation of property and equipment, amortization of capitalized software, as well as amortization of intangible assets. Such expenses are fixed at the time of an acquisition, then amortized over a period of several years. While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent non-cash current period expense which vary widely from company to company. Management believes that the exclusion of depreciation and amortization expense provides a supplemental measure of the Company's ongoing operating performance.
Other non-recurring or unusual charges
The Company has excluded certain other expenses that are the result of other, non-comparable events to measure operating performance. These events arise outside of the ordinary course of continuing operations. Given the unique nature of the matters relating to these costs, the Company believes these items are not normal operating expenses. For example, legal settlements and judgments vary significantly, in their nature, size and frequency, and, due to this volatility, the Company believes the costs associated with legal settlements and judgments are not normal operating expenses. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors.
Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
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 (844) 602-0380 (domestic) or (862) 298-0970 (international). 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 #57504. 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. (OTCQB: ATGN), a leading Microsoft Cloud Solutions provider, delivers fully managed Unified Communications services, combining Hosted Skype for Business, Advanced Cloud PBX, and Innovative Cloud Contact Center applications with seamless integration to Office 365 for small-to-medium sized businesses and mid-size to large enterprises. Our robust suite of applications integrate with Skype for Business, Microsoft Teams and Office 365 to deliver unparalleled capabilities to organizations using these Microsoft solutions. With thousands of 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, CA. For more information, call 1-888- ALTIGEN or visit the web site at www.altigen.com.
Safe Harbor Statement
This press release contains forwardlooking 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, many of which are outside the Company's control. There can be no assurances that the Company will achieve 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 Company does not undertake any obligation to update any forward-looking statements.
ALTIGEN COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(amounts in thousands, except per share data)
Three Months Ended
December 31,
2019 2018
Net revenue $ 2,844 $ 2,779
Gross profit 2,208 2,303
Operating expenses:
Research and development 656 614
Selling, general & administrative 1,058 1,079
Operating income 494 610
Other income/(expense), net 8 2
Net income before provision for income taxes 502 612
Income tax benefit (expense) - -
Net income $ 502 $ 612

Per share data:
Basic $ 0.02 $ 0.03
Diluted $ 0.02 $ 0.02
Weighted average shares outstanding:
Basic 22,921 22,842
Diluted 25,913 24,918


ALTIGEN COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(amounts in thousands)
December 31, 2019 September 30, 2019
Cash and cash equivalents $ 4,423 $ 4,357
Accounts receivable, net 543 371
Other current assets 356 287
Property and equipment, net 74 84
Operating lease right-of-use (1) 1,063 -
Intangible assets, net 429 395
Capitalized software, net 1,345 1,154
Deferred tax asset 8,453 8,453
Other long-term assets 36 36
Total assets $ 16,722 $ 15,137

Current liabilities (1) $ 1,912 $ 1,678
Long-term liabilities (1) 1,133 295
Stockholders' equity 13,677 13,164
Total liabilities and stockholders' equity $ 16,722 $ 15,137

(1) On October 1, 2019, the Company adopted the new leasing guidance (ASU 2016-2), which requires that a lessee recognize the assets and liabilities that arise from operating leases. The Company recognized a right-of-use asset and a liability relating to lease payments (the Lease Liability) in the statements of financial position for lease contracts having terms beyond 12 months period. The adoption of new leasing guidance resulted in recognition of $1.1 million of right-of-use asset and a total of $1.1 million of leasing liability as of December 31, 2019.
ALTIGEN COMMUNICATIONS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(amounts in thousands, except per share data)
Three Months Ended
December 31,
2019 2018
Reconciliation of GAAP to Non-GAAP Gross Profit:
GAAP gross profit $ 2,208 $ 2,303
Amortization of capitalized software 42 21
Acquisition related expenses 40 -
Non-GAAP gross profit $ 2,290 $ 2,324

Reconciliation of GAAP to Non-GAAP Expenses:
GAAP operating expenses $ 1,714 $ 1,693
Section 382 study (1) - 68
Depreciation and amortization 10 12
Amortization of capitalized software 22 15
Stock-based compensation 5 8
Non-GAAP operating expenses $ 1,677 $ 1,590


GAAP net income $ 502 $ 612
Section 382 study (1) - 68
Depreciation and amortization 10 12
Amortization of capitalized software 64 36
Stock-based compensation 5 8
Acquisition related expenses 40 -
Non-GAAP net income $ 621 $ 736

Per share data:
Basic $ 0.03 $ 0.03
Diluted $ 0.02 $ 0.03
Weighted average shares outstanding:
Basic 22,921 22,842
Diluted 25,913 24,918

(1) During the first quarter of fiscal 2019, the Company performed a section 382 ownership change analysis to determine if there were any limitations on the utilization of its NOLs.

CONTACT:
Carolyn David
Vice President of Finance
Altigen Communications, Inc.
Phone: 408-597-9033
www.altigen.com
SOURCE: Altigen Communications, Inc.


























































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bUrRpPPP! bUrRpPPP! 5 years ago
Next leg up...
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bUrRpPPP! bUrRpPPP! 5 years ago
MILPITAS, CA / ACCESSWIRE / December 3, 2019 / Altigen Communications, Inc. (OTCQB:ATGN), a Silicon Valley based Microsoft ISV and Cloud Solutions provider, announced today its financial results for the fourth quarter and fiscal year ended September 30, 2019.

Full Year Fiscal 2019 Financial Highlights

Total revenue of $10.6 million
Cloud revenue of $6.2 million
Operating income was $2.1 million
Cash and cash equivalents of $4.4 million at Sept. 30, 2019

Fourth Quarter Fiscal 2019 Financial Highlights

Total revenue of $2.7 million
Cloud revenue of $1.6 million
Operating income was $554,000

"Fiscal 2019 represented a strong financial performance and marked our 3rd consecutive year of profitable growth. As we continued our transition to the cloud, we experienced a 31% decline in one-time revenue. Despite those headwinds, which are a natural by-product of a conversion to monthly recurring revenue, overall company revenue grew by 6%, primarily as a result of our 24% increase in cloud revenue."

"We also achieved a number of important milestones during the year, including extending our service and support agreement with our largest strategic partner, Fiserv; acquiring the customer base of WorkSpace Communications, which will contribute to our growth in the Microsoft UC space; and the launch of a new Direct Routing (SIP trunk) service, the first of many new solutions for Microsoft Teams."

Adoption of the New Revenue Recognition Standard - ASC 606

During the first quarter of fiscal 2019, the Company adopted accounting standard ASC 606, Revenue From Contracts With Customers ("ASC 606"). The adoption of ASC 606 did not have a material impact to our Condensed Consolidated Statement of Operations presented herein. Refer to our upcoming Annual Report for fiscal year ended September 30, 2019 for further details.

Full Year Fiscal 2019 Financial Results

Net Revenue: For the twelve months ended September 30, 2019, total revenue grew 6% to $10.6 million, in comparison to $10.0 million for fiscal 2018. Revenue consisted of:

Cloud services revenue of $6.2 million, an increase of 24% compared to fiscal 2018.
Software assurance revenue of $2.9 million, a decrease of 9% compared to fiscal 2018.
Software and professional services revenue of $1.5 million, a decrease of 14% compared to fiscal 2018.

Gross Margin: Total gross margin decreased 210 basis points to 81.4% for the twelve-month period of fiscal 2019, compared to 83.5% in the comparable period last year, driven primarily by a shift in our product mix, and to a lesser extent, higher amortization of capitalized software and acquisition related costs.

GAAP Net Income: For fiscal 2019, GAAP net income was $1.9 million, or $0.07 per diluted share, compared with GAAP net income of $9.8 million, or $0.40 per diluted share for fiscal 2018. The Company's fourth quarter fiscal 2019 financial results include a non-cash tax expense of approximately $285,000. The tax expense differs from the federal statutory rate of 21% primarily due to an increase in the amount of net operating losses expected to be utilized before expiration. Fiscal 2018 financial results include a one-time non-cash income tax benefit of approximately $8.7 million related to the release of the tax valuation allowance previously recorded against a significant portion of the Company's deferred tax assets.

Non-GAAP Net Income: Non-GAAP net income for fiscal 2019 was $2.5 million, or $0.10 per diluted share, compared with non-GAAP net income of $1.8 million, or $0.07 per diluted share for fiscal 2018.

GAAP Operating Expenses: For the full-year 2019, GAAP operating expenses decreased $703,000, or 10% to $6.5 million, compared to $7.2 million for the full-year 2018. The decrease was primarily attributable to a $604,000 litigation accrual recognized in the second half of fiscal 2018, in connection with the pending CTI complaint. For additional information, please refer to the Company's filings with the OTCQB over-the-counter market, including the Company's most recent Quarterly Report filed on August 16, 2019.

Non-GAAP Operating Expenses: Non-GAAP operating expenses for fiscal 2019 decreased $236,000, or 4% to $6.3 million, compared to $6.5 million in fiscal 2018.

Fourth Quarter Fiscal Year 2019 Financial Results

Net Revenue: Fourth quarter total revenue was $2.7 million in both fiscal 2019 and 2018. Fourth quarter revenue consisted of:

Cloud services revenue of $1.6 million, an increase of 15% compared to a year ago.
Software assurance revenue of $712,000, a decrease of 6% compared to a year ago.
Software and professional services revenue of $352,000, a decrease of 33% compared to a year ago.

Gross Margin: Gross margin decreased 280 basis points to 80.3% in the fourth quarter of fiscal 2019, from 83.1% in the prior-year quarter, driven primarily by a shift in our product mix, and to a lesser extent, higher amortization of capitalized software and acquisition related costs.

GAAP Net Income: For the fourth quarter of fiscal 2019, GAAP net income was $290,000, or $0.01 per diluted share, compared with GAAP net income of $9.0 million, or $0.36 per diluted share, for the comparable period of the prior year. The Company recorded a non-cash tax expense of approximately $285,000 for the three months ended September 30, 2019. The tax expense differs from the federal statutory rate of 21% primarily due to an increase in the amount of net operating losses expected to be utilized before expiration. The Company's fourth quarter fiscal 2018 financial results include a one-time non-cash income tax benefit of approximately $8.7 million related to the release of the tax valuation allowance recorded against a significant portion of the Company's deferred tax assets.

Non-GAAP Net Income: Non-GAAP net income for the fourth quarter of fiscal 2019 was $635,000, or $0.02 per diluted share, compared with non-GAAP net income of $614,000, or $0.02 per diluted share for the fourth quarter of fiscal 2018.

GAAP Operating Expenses: GAAP operating expenses for the fourth quarter of fiscal 2019 decreased $306,000, or 16% to $1.6 million, compared to $1.9 million during the same period a year ago, driven primarily by lower litigation expenses in connection with the pending CTI complaint. For additional information, please refer to the Company's filings with the OTCQB over-the-counter market, including the Company's most recent Quarterly Report filed on August 16, 2019.

Non-GAAP Operating Expenses: Non-GAAP operating expenses for the fourth quarter of fiscal 2019 totaled $1.6 million, the same as in the prior-year quarter.

Balance Sheet

Our cash and cash equivalents increased $1.3 million, or 41% to $4.4 million at September 30, 2019, compared to $3.1 million in the comparable period last year. Working capital was $3.3 million at September 30, 2019, representing a 45% increase from $2.3 million at September 30, 2018.

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. The excluded items represent stock-based compensation expense, depreciation and amortization expenses and other non-recurring or unusual items 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.

The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:

Stock-based compensation expense

Stock-based compensation expense is impacted by the Company's future hiring and retention needs and the future fair market value of the Company's common stock, all of which are difficult to predict and subject to constant change. Furthermore, stock-based compensation expense is generally fixed at the time of grant, then amortized over a period of several years, and generally cannot be changed or influenced by management after the grant. The Company believes that the exclusion of stock-based compensation expense assists investors in the comparisons of operating results to peer companies. Stock-based compensation expense can vary significantly based on the timing, size and nature of awards granted.

Depreciation and amortization expenses

Depreciation and amortization expense includes the depreciation of property and equipment, amortization of capitalized software, as well as amortization of intangible assets. Such expenses are fixed at the time of an acquisition, then amortized over a period of several years. While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent non-cash current period expense which vary widely from company to company. Management believes that the exclusion of depreciation and amortization expense provides a supplemental measure of the Company's ongoing operating performance.

Other non-recurring or unusual charges

The Company has excluded certain other expenses that are the result of other, non-comparable events to measure operating performance. These events arise outside of the ordinary course of continuing operations. Given the unique nature of the matters relating to these costs, the Company believes these items are not normal operating expenses. For example, legal settlements and judgments vary significantly, in their nature, size and frequency, and, due to this volatility, the Company believes the costs associated with legal settlements and judgments are not normal operating expenses. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors.

Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

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 (844) 369-8770 (domestic) or (862) 298-0840 (international). 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 #56860. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion.
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sopelote sopelote 5 years ago
ATGN Altigen quietly inching towards it's annual earnings report... I'm expecting a continued, year over year 25% growth in its Cloud software revenue which should bring in another burst of volume and a double in price. https://pic.twitter.com/ViNFU69xCh
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sopelote sopelote 5 years ago
ATGN is now completing a long, nine month accumulation pattern as it prepares for the next price leg higher. I expect the current price of 1.11 to more than double in the coming several months time. As I see it; three dollars is a certainty and five dollars is my two years out target. It will eventually go higher than five dollars...and that's when the fun really begins.
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Tower of Hanoi Tower of Hanoi 5 years ago
Best call I've read in IH.

Thinking of buying some in the $1 range-
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