AltiGen Communications Reports Third Quarter Fiscal 2010 Results
SAN JOSE, CA -- (Marketwire) -- 07/21/10 -- AltiGen Communications, Inc. (OTCQX: ATGN) (PINKSHEETS: ATGN), the leading provider of integrated Microsoft-based Unified Communications solutions, today reported financial results for its third quarter of fiscal 2010 ended June 30, 2010.
Third Quarter Financial Highlights:
-- Third quarter revenue of $4.2 million -- Gross margin improved to 68.1% -- Net loss decreased to $259,000 -- Ending cash balance of 7.2 million
Gilbert Hu, AltiGen's CEO, stated, "As a result of our conversion to an open software communications platform, we are seeing more software shipped to our customers. More enterprises are discerning the value of software and the advantages it holds over proprietary hardware systems. As a result, we continue to participate in large enterprise opportunities previously unavailable to us which should contribute to sustainable margin improvement."
Jeremiah Fleming, AltiGen's President and COO, stated, "While PBX vendors continue to push proprietary hardware, IT departments are increasingly realizing the benefits of software-based solutions. Rather than requiring companies to deploy disparate, proprietary hardware systems, AltiGen Unified Communications solutions enable our customers to leverage their investments in existing technology infrastructure. This rapidly growing market trend is generating new business opportunities which AltiGen is now uniquely positioned to address."
Revenue for the third quarter of fiscal 2010 was $4.2 million, a 3% increase from revenue of $4.1 million in third quarter of fiscal 2009. Gross margin in the third quarter was 68.1%, compared to 62.3% a year ago and 66.1% in the preceding quarter. Operating expenses totaled $3.1 million, compared to $3.5 million a year ago and $3.3 million in the preceding quarter.
Net loss for the third quarter of fiscal 2010 was $259,000, or a loss of $0.02 per share, compared to a net loss of $945,000, or a loss of $0.06 per share, in the third quarter of 2009 and a net loss of $340,000, or a loss of $0.02 per share, in the preceding quarter. Total cash and cash equivalents, plus short term investments at June 30, 2010 were $7.2 million, compared to $7.5 million at March 31, 2010.
For the nine months ended June 30, 2010, revenue was $12.8 million, compared to $12.5 million for the same period in fiscal 2009. For the nine months ended June 30, 2010, net Loss was $1.1 million, or a loss of $0.07 per share, compared to net loss of $4.0 million, or a loss of $0.25 per share, in the prior year period.
Conference Call
AltiGen will conduct a conference call with investment professionals at 2:00 p.m. Pacific Time (5:00 p.m. ET) today, July 21, 2010 to discuss AltiGen's results of operations for the fiscal 2010 third quarter. Dial (800) 862-9098 (domestic) or (785)424-1051 (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 July 23, 2010. To access the replay, dial (800) 839-4016 or (402) 220-7240. 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) (PINKSHEETS: ATGN) is a leading provider of 100 percent 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 200 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 100 percent Microsoft-based business phone systems and Unified Communications solutions, AltiGen's continuing success in increasing our larger systems share of overall systems shipped, our ability to successfully convert to an open software communications platform, and our ability to leverage our Unified Communications solution in the rapidly growing non-proprietary hardware market. 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, 2009 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.
AltiGen Communications, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
Third Quarter Ended Nine Months Ended
June 30 June 30
---------------------- ----------------------
FY 2010 FY 2009 FY 2010 FY 2009
---------- ---------- ---------- ----------
Net Revenue $ 4,199 $ 4,082 $ 12,841 $ 12,519
Gross profit 2,859 2,545 8,593 7,614
Research and development 1,113 1,126 3,347 3,594
Selling, general &
administrative 2,006 2,411 6,338 8,117
---------- ---------- ---------- ----------
Operating loss (260) (992) (1,092) (4,097)
Interest and other
income, net 1 47 24 101
---------- ---------- ---------- ----------
Net loss before tax (259) (945) (1,068) (3,996)
Provision for income tax - - 1 (15)
---------- ---------- ---------- ----------
Net loss after tax $ (259) $ (945) $ (1,069) $ (3,981)
========== ========== ========== ==========
Basic and diluted net loss
per share $ (0.02) $ (0.06) $ (0.07) $ (0.25)
Weighted average shares
outstanding 16,453 15,923 16,391 15,869
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
June 30, September 30,
2010 2009
---------- ----------
Cash and cash equivalents $ 5,715 $ 7,397
Short-term investments 1,497 -
Accounts receivable, net 849 1,545
Inventories 1,080 1,266
Other current assets 338 128
Net property and equipment 577 501
Other long-term assets 479 494
---------- ----------
Total Assets $ 10,535 $ 11,331
========== ==========
Current liabilities $ 4,896 $ 5,342
Long-term liabilities 360 232
Stockholders' equity 5,279 5,757
---------- ----------
Total Liabilities and
Stockholders' Equity $ 10,535 $ 11,331
========== ==========