AltiGen Communications Inc (ATGN) Q4 2024 Earnings Call Highlights: Record Revenue and ...

In This Article:

  • Fiscal Q4 Revenue: $3.7 million, a 14% increase over the prior quarter and a 7% increase year over year.

  • Fiscal 2024 Net Income: Approximately $1.6 million, including a one-time accounting adjustment of $1.8 million related to accrued tax liabilities.

  • Q4 Operating Income: Approximately $223,000, marking the second consecutive profitable quarter.

  • Cloud Services Revenue: $1.7 million, down 15% from the same period last year.

  • Services Revenue: Increased 57% to $1.7 million from $1.1 million in the prior year quarter.

  • Gross Margin: 63.9%, up from 62.4% in the same period last year.

  • GAAP Operating Expenses: $2.2 million, a 2% increase compared to the same period last year.

  • Non-GAAP Operating Expenses: $2 million, a 4% reduction from the prior year quarter.

  • GAAP Net Income for Q4: $2.1 million or $0.08 per diluted share, compared to a GAAP net loss of $2.8 million or negative $0.11 per diluted share in the prior year quarter.

  • Non-GAAP Net Income: $493,000 or $0.01 per diluted share, compared to $145,000 or $0.01 per diluted share in the same quarter of the prior year.

  • Cash and Cash Equivalents: $2.6 million, a 29% increase compared to the prior quarter.

  • Working Capital: Grew to $2.1 million from $2 million in the previous quarter, reflecting a 2% increase.

Release Date: December 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • AltiGen Communications Inc (ATGN) reported a 14% increase in fiscal Q4 revenue compared to the prior quarter, marking the highest quarterly revenue in over a decade.

  • The company achieved its second consecutive profitable quarter with an operating income of approximately $223,000.

  • AltiGen is making significant progress in migrating legacy PBX customers to its cloud Unified Communications platform, with plans to transition the remaining customers over the next 18 to 24 months.

  • The company has been approved as a vendor for British Telecom, which has included AltiGen's Core Engage platform in its solutions portfolio for Microsoft Teams.

  • AltiGen's consulting services division has demonstrated consistent growth, particularly through its partnership with the Connecticut Department of Transportation.

Negative Points

  • Full year revenue remained relatively flat compared to the prior year, indicating challenges in achieving significant growth.

  • The Microsoft Teams line of business was relatively flat in FY24 due to delays in the delivery of the planned Teams contact center solution.

  • Cloud services revenue for Q4 was down 15% from the same period last year, highlighting a decline in this segment.

  • The launch of the new AI-based conversational IVR solution has been delayed from October to April, potentially impacting revenue projections.

  • The company's legacy PBX business continues to face declining revenues, necessitating a focus on customer migration to newer platforms.