FREMONT, Calif., April 25, 2001 (PRIMEZONE) -- AltiGen Communications, Inc. (Nasdaq:ATGN), the market leader in IP-PBX phone systems for small and mid-sized businesses (SMBs), today announced financial results for its second fiscal quarter ended March 31, 2001.
Consistent with the Company's April 12, 2001 preliminary announcement, revenue for the second quarter was $2.9 million, compared to $2.4 million in the first quarter of 2001, and $3.2 million in the second quarter of 2000. Net loss for the second quarter of 2001 was $3.2 million, or $0.24 per share, compared sequentially to a net loss for the first quarter of 2001 of $2.5 million, or $0.18 per share, and to a net loss of $2.5 million, or $0.18 per share for the same period a year ago.
"Several positive developments since the beginning of the year helped us achieve sequential growth during the period," commented Gilbert Hu, President and Chief Executive Officer of AltiGen Communications. "We believe AltiGen's top-line quarter-over quarter growth reflects the counter-cyclical nature of AltiGen solutions, which enable small businesses to engage in strong cost cutting and value purchases in their phone systems even in the midst of tough economic times."
"An increased acceptance rate of our market-leading IP PBX and Multimedia Call Center solutions ramped quickly beginning in the March quarter, which we believe will continue in the periods ahead. This solution allows end-users to deploy AltiGen's sophisticated customer contact and response management capabilities into their operations. These features have, up until now, typically been found in very expensive large enterprise systems. Additionally, we continue to aggressively expand our marketing efforts to take advantage of strong demand for cost-effective IP PBX and IP call center functionality geared towards the small and mid-size business market. And, as we continue to keep the expenses stable, we believe our sequential growth will continue and allow us to break even in 2002."
About AltiGen
AltiGen Communications, Inc. designs, manufactures and markets next-generation telecom servers that give small- to mid-sized businesses integrated communications systems for streamlined operations and enhanced productivity. AltiGen's telecom server uses both the Internet and traditional phone lines interchangeably and allows businesses to integrate their phones, databases and PC's into one powerful Web enabled communications network. For more information, call 1-888-ALTIGEN or visit the Website at http://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 AltiGen's confidence in upcoming financial periods, market acceptance of our products, continued success in our marketing plans, and progress toward its long term financial and profitability model. These statements reflect management's current expectations. 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 the Company's recent 10-K for the year ended September 30, 2000 and most recent 10Q for the period ended December 31, 2000. AltiGen assumes no obligation to update the forward-looking information contained in this press release.
AltiGen Communications, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except for per share data)
(Unaudited)
Second Quarter Ended Six Months ended
March 31 March 31
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FY 2001 FY 2000 FY 2001 FY 2000
-------- -------- -------- --------
Net revenues $ 2,910 $ 3,170 $ 5,295 $ 5,655
Gross profit 1,207 1,745 2,400 3,069
Research &
development 1,209 976 2,367 1,797
Selling, general
& administrative 3,244 3,547 6,049 5,933
Deferred stock
compensation 353 243 523 486
Operating loss (3,599) (3,021) (6,539) (5,147)
Interest & other
income 383 546 863 1,019
Income tax -- -- 2 --
-------- -------- -------- --------
Net loss $ (3,216) $ (2,475) $ (5,678) $ (4,128)
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Basic and diluted
net loss per share $ (0.24) $ (0.18) $ (0.42) $ (0.32)
Weighted average
shares outstanding 13,614 13,430 13,585 13,087
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
Mar. 31, 2000 Sept. 30, 2000
------------- --------------
Cash & cash equivalents $14,314 $15,141
Short-term investments 8,337 14,082
Accounts receivable, net 1,635 2,041
Inventories 5,331 4,268
Other current assets 1,556 1,358
Net property & equipment 1,243 849
Long-Term Investments 398 906
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Total Assets $32,814 $38,645
Current liabilities $ 3,317 $ 4,153
Stockholders' equity 29,497 34,492
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Total Liabilities &
Stockholders' Equity $32,814 $38,645
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