AltiGen Communications, Inc. Reports 2016 Fiscal Second Quarter and Six-Month Financial Results


SAN JOSE, CA--(Marketwired - Apr 20, 2016) - AltiGen Communications, Inc. (OTCQX: ATGN), a leading provider of premise and cloud-based IP-PBX and Contact Center solutions, announced today its financial results for the second quarter ended March 31, 2016.

Second Quarter Fiscal Year 2016 Results
Revenue for the second quarter of fiscal year 2016 was $2.2 million, in comparison to $2.5 million for the second quarter of fiscal year 2015. GAAP net income for the second quarter of fiscal 2016 was $35,000, or $0.00 per diluted share, compared with GAAP net income of $107,000, or $0.00 per diluted share, for the comparable period of the prior year. Non-GAAP net income for the second quarter of fiscal year 2016 was $115,000, or $0.00 per diluted share, compared with non-GAAP net income of $362,000, or $0.02 per diluted share for the second quarter of fiscal year 2015. Gross margin in the second quarter of fiscal 2016 was 81.5%, compared to 80.1% in the same period in 2015. Operating expenses for the second quarter of fiscal 2016 totaled $1.7 million, compared to $1.9 million during the same period a year ago.

Six Month Fiscal Year 2016 Results
For the first six months of fiscal year 2016, revenue was $4.4 million, compared to $5.2 million during the same period in fiscal 2015. GAAP net income for the six months ended March 31, 2016 was $64,000, or $0.00 per diluted share, compared with GAAP net income of $526,000, or $0.02 per diluted share in the prior year period. Non-GAAP net income for the first six months of fiscal year 2016 was $261,000, or $0.01 per diluted share, compared with non-GAAP net income of $797,000, or $0.03 per diluted share during the same period a year ago. Gross margin was 81.1% for the first six months of fiscal 2016, compared to 80.0% in the same period in 2015. Operating expenses for the six month of fiscal 2016 totaled $3.5 million, compared to $3.6 million in the comparable period last year.

Cash, Cash Equivalents and Restricted Cash
Our cash, cash equivalents and restricted cash increased by $200,000, or 4% to $4.9 million at the end of the second quarter, compared to $4.7 million at the end of the preceding quarter. Working capital was $2.0 million at the end of the second quarter, compared to $1.7 million in the preceding quarter.

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 (877) 407-8031 (domestic) or (201) 689-8031 (international). A live webcast will also be made available at http://www.altigen.com. To access the replay, dial (877) 660-6853 (domestic) or (201) 612-7415 (international), account #286 conference ID #13635372. 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. (OTCQX: ATGN) is a leading provider of premise and cloud-based IP-PBX and Contact Center solutions headquartered in Silicon Valley, California. 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. For more information, call 1-888-ALTIGEN or visit the web site at www.altigen.com.

Safe Harbor Statement
This release may contain forward-looking statements. Forward-looking statements are based only on the Company's views of future events and financial performances, current expectations, beliefs, plans and assumptions. They are subject to known and unknown risks and uncertainties, many of which are outside of the Company's control that may cause the Company's actual results to be materially different from planned or expected results. There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations. Please refer to the Company's most recent Annual Report filed with the OTCQX 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)
 
   
     Second Quarter Ended    Six Months Ended  
      March 31,     March 31,  
    FY 2016   FY 2015   FY 2016   FY 2015  
Net Revenue   $ 2,161   $ 2,539   $ 4,381   $ 5,187  
Gross profit     1,761     2,034     3,554     4,147  
Operating Expenses:                          
  Research and development     678     784     1,359     1,492  
  Selling, general & administrative     1,046     1,141     2,125     2,123  
Operating income     37     109     70     532  
Other income/(expense),net     (2 )   (2 )   (5 )   (5 )
Net income before provision for income taxes     35     107     65     527  
Provision for income taxes     -     -     (1 )   (1 )
Net income   $ 35   $ 107   $ 64   $ 526  
                           
Basic and diluted net income per share   $ 0.00   $ 0.00   $ 0.00   $ 0.02  
Weighted average shares outstanding - basic     22,799     22,799     22,799     22,799  
Weighted average shares outstanding - diluted     23,829     23,167     23,789     24,699  
                           
 
AltiGen Communications, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
 
    March 31, 2016
(unaudited)
  September 30, 2014
(audited)
Cash and cash equivalents   $ 4,902   $ 4,560
Accounts receivable, net     329     403
Inventories     193     341
Other current assets     158     54
Net property and equipment     113     126
Other long-term assets     31     31
Total Assets   $ 5,726   $ 5,515
             
Current liabilities   $ 3,563   $ 3,803
Long-term liabilities     390     200
Stockholders' equity     1,773     1,512
Total liabilities and stockholders' equity   $ 5,726   $ 5,515