AltiGen Communications, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
First Quarter Ended
December 31
--------------------------------------
FY 2009 FY 2008
------------------ ------------------
Net Revenue $ 4,860 $ 4,260
Gross profit 2,962 2,406
Research and development 1,237 915
Selling, general & administrative 3,055 2,577
------------------ ------------------
Operating profit (loss) (1,330) (1,086)
Interest and other income, net 34 115
------------------ ------------------
Net profit (loss) before tax (1,296) (971)
Provision for income tax (16) -
------------------ ------------------
Net income (loss) after tax $ (1,280) $ (971)
================== ==================
Basic and diluted net profit (loss)
per share (0.08) (0.06)
Weighted average shares outstanding 15,838 15,728
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
December 31, 2008 September 30, 2008
------------------ ------------------
Cash and cash equivalents $ 4,644 $ 9,467
Short-term investments 4,998 400
Accounts receivable, net 1,993 2,423
Inventories 1,851 1,594
Other current assets 254 176
Net property and equipment 441 423
Other long-term assets 290 293
------------------ ------------------
Total Assets $ 14,471 $ 14,776
================== ==================
Current liabilities $ 5,690 $ 5,374
Long-term liabilities $ 406 105
Stockholders' equity 8,375 9,297
------------------ ------------------
Total Liabilities and Stockholders'
Equity $ 14,471 $ 14,776
================== ==================
AltiGen Communications Reports Record First Quarter Fiscal 2009 Revenue of $4.9 Million, up 14% Year-Over-Year
| Source: AlitGen Communications
FREMONT, CA--(Marketwire - January 21, 2009) - 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 2009 first quarter ended December 31, 2008.
Gilbert Hu, AltiGen's CEO, stated, "We continue to make solid progress with
our growth initiatives and are pleased to generate record revenue for the
first quarter despite the challenging economy and what is typically a
seasonally weaker quarter. We also achieved sequential growth in service
plan revenue, which represented approximately 12 percent of total first
quarter revenue. We ended the quarter with $2.1 million in deferred
revenue, up from $1.7 million last quarter."
Jeremiah Fleming, AltiGen's President and COO, stated, "During the quarter,
we experienced increasing validation of both our new, enterprise level
products and service plan offerings. Our service plan revenue increased 42
percent sequentially in the first quarter, further building on our
relatively new base of recurring revenue. Our new service plan offering
remains a significant growth opportunity as we continue to add new service
plan customers from our substantial base of over 10,000 installations.
"Our new enterprise level products continued to gain traction as we began
moving upstream in the market and attracting larger, more strategic
customers and resellers. We signed several new, large reseller partners
during the quarter that are selling Microsoft's Unified Communications
solution. AltiGen, a Microsoft Certified Partner, offers an open,
software-based VoIP solution that is fully integrated with Microsoft's
Unified Communication solution and completes the Microsoft technology
stack. Customers and resellers are excited about the significant advantages
of our enhanced, more scalable solutions, including the ability to leverage
their existing investments in Microsoft infrastructure technologies,
competitive cost advantage and substantial return on investment that
midsize and larger enterprises will realize, particularly in this difficult
economy."
Financial Results
Revenue for the fiscal 2009 first quarter was $4.9 million, up 14% over
revenue of $4.3 million in the first quarter a year ago and compares to
$5.1 million in the preceding quarter. Gross margin increased to 60.9
percent, compared to 56.5 percent a year ago and 58.4 percent in the
preceding quarter. Operating expenses totaled $4.3 million, compared to
$3.5 million a year ago and $3.9 million in the preceding quarter.
Net loss for the first quarter of fiscal 2009 was $1.3 million, or a loss
of $0.08 per share, compared to a net loss of $971,000, or a loss of $0.06
per share in the first quarter a year ago, and a net loss of $810,000, or a
loss of $0.05 per share, in the preceding quarter.
Phil McDermott, AltiGen's CFO, stated, "The increase in margins in the
first quarter to 60.9% from 58.4% in the preceding quarter reflects
increased gross profit dollars from our service plan revenue. We ended the
quarter with $9.6 million in cash and short term investments and no long
term debt."
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 December 31, 2008,
AltiGen repurchased 242,000 shares of common stock for approximately
$375,000. 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, January 21, 2009 to discuss
AltiGen's results of operations for the first 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 January 23, 2009. To access the replay, dial
(800) 695-0715 or (402) 220-1423. 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 new enterprise level products and our ability
to provide increasing gross margins. 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.