NEWARK, CA / ACCESS Newswire / April 29, 2025 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft Cloud Communications Solutions provider, announced today its financial results for the second quarter ended March 31, 2025.
Our fiscal second quarter represented our 4th consecutive quarter of profitability," said Jeremiah Fleming, Altigen President & CEO. "On a year over year basis our results improved in virtually every category. Overall, our digital transformation efforts are gaining traction as evidenced by our reduction in operating expenses. Going forward we expect to see similar improvements in our top line revenue."
Key Financial Highlights (2Q 2025 versus 2Q 2024)
Net Revenue increased 4% to $3.5 million
Cloud services revenue decreased 8% to $1.7 million;
Service and Other revenue increased 31% to $1.6million;
Gross margin increased to 62%, compared with 60%;
GAAP net income was $287 thousand, compared with ($236) thousand.
Trended Financial Information
(in thousands, except for EPS and percentages)
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
2Q25
1Q25
4Q24
3Q24
2Q24
1Q24
Total Revenue
$
3,500
$
3,378
$
3,736
$
3,283
$
3,360
$
3,240
Cloud Services
1,680
1,720
1,680
1,710
1,817
1,890
Services and Other
1,552
1,366
1,731
1,249
1,183
996
Legacy Products
268
292
325
324
360
354
GAAP Operating (Loss) / Income
$
283
$
75
$
209
$
68
$
(241
)
$
(343
)
Operating Margin
8.1
%
2.2
%
0.7
%
2.1
%
-7.2
%
-10.6
%
GAAP Net Income/(Loss)
$
287
$
87
$
2,079
$
62
$
(236
)
$
(346
)
Adjusted EBITDA (1)
314
291
507
214
-67
-159
Adjusted EBITDA excludes one-time litigation costs and other non-recurring or unusual charges that may arise from time to time that we do not consider to be directly related to core operating performance.
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) 545-0523 (domestic) or (973) 528-0016 (international), conference ID #531611. To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #52312. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion.
About Altigen Technologies
Altigen Technologies (OTCQB:ATGN) is focused on driving digital transformation in today's modern workplace. Our Cloud Communications solutions and Technology Consulting services empower companies of all sizes to elevate customer engagement, increase employee productivity and improve operational efficiency. We're headquartered in Silicon Valley with operations strategically located in five countries spanning three continents. For more information, call 1-888-ALTIGEN or visit our website at www.altigen.com.
Safe Harbor Statement
This press release contains forward‐looking information. The statements are based on reasonable assumptions, beliefs and expectations of management and the Company provides no assurance that actual events will meet management's expectations. Furthermore, the forward-looking statements contained in this press release are based on the Company's views of future events and financial performances which are subject to known and unknown risks and uncertainties including, but not limited to, statements regarding the Company's operational improvements, performance enhancements, AI solution development, and expectations for sustainable growth. There can be no assurances that the Company will achieve the expected results, and actual results may be materially different than expectations and from those stated or implied in forward-looking statements.
Please refer to the Company's most recent Annual Report filed with the OTCQB 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. CONSOLIDATED BALANCE SHEETS (In thousands, except shares and per share data)
March 31,
September 30,
2025
2024
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
2,834
$
2,575
Accounts receivable, net
1,702
1,770
Other current assets
216
185
Total current assets
4,752
4,530
Property and equipment, net
-
-
Operating lease right-of-use assets
96
149
Goodwill
2,725
2,725
Intangible assets, net
1,221
1,242
Capitalized software development cost, net
1,509
1,363
Deferred tax asset
5,638
5,638
Other long-term assets
15
2
Total assets
$
15,956
$
15,649
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
290
$
98
Accrued compensation and benefits
489
593
Accrued expenses
368
446
Deferred consideration - current
744
744
Operating lease liabilities - current
66
104
Deferred revenue - current
522
481
Total current liabilities
2,479
2,466
Deferred consideration - long-term
-
0
Operating lease liabilities - long-term
38
49
Deferred revenue - long-term
90
176
Total liabilities
2,607
2,691
Stockholders' equity:
Common stock
24
24
Treasury stock
-1,579
-1,565
Additional paid-in capital
73,224
73,193
Accumulated deficit
-58,320
-58,694
Total stockholders' equity
13,349
12,958
Total liabilities and stockholders' equity
$
15,956
$
15,649
(1) The information in this column was derived from the Company's audited consolidated financial statements as of and for the year ended September 30, 2024.
ALTIGEN COMMUNICATIONS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (In thousands, except per share data)
Three Months Ended
Six Months Ended
March 31,
March 31,
2025
2024
2025
2024
Net revenue
$
3,500
$
3,360
$
6,878
$
6,600
Gross profit
2,165
2,061
4,295
4,015
Operating expenses:
Research and development
433
1,202
684
2,438
Selling, general & administrative
1,449
1,100
3,253
2,161
Operating income (loss)
283
(241
)
358
(584
)
Interest expense
-
-
-
Interest and other income
13
5
25
2
Net income (loss) before provision for income taxes
296
(236
)
383
(582
)
Income tax benefit (expense) (1)
(9
)
-
(9
)
-
Net income (loss)
$
287
$
(236
)
$
374
$
(582
)
Per share data:
Basic
$
0.01
$
(0.01
)
$
0.01
$
(0.02
)
Diluted
$
0.01
$
(0.01
)
$
0.01
$
(0.02
)
Weighted average shares outstanding:
Basic
25,601
24,919
25,601
24,919
Diluted
25,928
24,919
25,928
24,919
ALTIGEN COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands)
Six Months Ended
March 31,
2025
2024
Cash flows from operating activities:
Net income (loss)
$
374
$
(582
)
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization
-
2
Deferred income tax expense
-
-
Amortization of intangible assets
99
92
Amortization of capitalized software
(46
)
232
Stock-based compensation
31
28
Changes in operating assets and liabilities:
Accounts receivable and unbilled accounts receivable
61
(395
)
Prepaid expenses and other current assets
(23
)
(125
)
Other long-term assets
(12
)
(12
)
Accounts payable
192
60
Accrued expenses
(411
)
(62
)
Deferred revenue
132
(29
)
Net cash provided by (used in) operating activities
397
(791
)
Cash flows from investing activities:
Acquisition of business
-
-
Capitalized software development costs
(124
)
(226
)
Net cash provided by (used in) investing activities
(124
)
(226
)
Cash flows from financing activities:
Payment related to business acquisition
-
-
Exercise of stock option
(14
)
-
Net cash provided by (used in) financing activities
-
-
Net increase (decrease) in cash and cash equivalents
259
(1,017
)
Cash and cash equivalents, beginning of year
2,575
2,641
Cash and cash equivalents, end of year
$
2,834
$
1,624
ALTIGEN COMMUNICATIONS, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data)
Three Months Ended
Six Months Ended
March 31,
March 31,
2025
2024
2025
2024
Reconciliation of GAAP to Non-GAAP Gross Profit:
GAAP gross profit
$
2,165
$
2,061
$
4,295
$
4,015
Amortization of capitalized software
(86
)
91
(57
)
209
Amortization of acquired customer relationships
40
40
80
80
Non-GAAP gross profit
$
2,119
$
2,192
$
4,318
$
4,304
Reconciliation of GAAP to Non-GAAP Expenses:
GAAP operating expenses
$
1,882
$
2,302
$
3,937
$
4,599
Depreciation and amortization
-
1
-
2
Amortization of capitalized software
5
11
11
23
Amortization of intangible assets
12
6
19
12
Stock-based compensation
13
16
31
28
Non-GAAP operating expenses
$
1,852
$
2,268
$
3,876
$
4,534
Reconciliation of GAAP to Non-GAAP Net Income:
GAAP net profit / (loss)
$
287
$
(236
)
$
374
$
(582
)
Depreciation and amortization
-
1
-
2
Amortization of capitalized software
(81
)
102
(46
)
232
Amortization of intangible assets
52
46
99
92
Stock-based compensation
13
16
31
28
Deferred tax asset valuation allowance
-
-
-
-
Non-GAAP net income
$
271
$
(71
)
$
458
$
(228
)
Per share data:
Basic
$
0.01
$
(0.01
)
$
0.01
$
(0.01
)
Diluted
$
0.01
$
(0.01
)
$
0.01
$
(0.01
)
Weighted average shares outstanding:
Basic
25,601
24,919
25,601
24,919
Diluted
25,928
24,919
25,928
24,919
Non-GAAP Financial Measures
In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis. These non-GAAP financial measures exclude stock-based compensation expense, amortization of acquired intangible assets, depreciation and amortization expenses, acquisition-related costs, change in deferred tax asset valuation allowance, litigation costs and other non-recurring or unusual charges or benefits that may arise from time to time that we do not consider to be directly related to core operating performance. We use non-GAAP measures to evaluate the core operating performance of our business and to perform financial planning. Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating: (i) the comparability of our on-going operating results over the periods presented and (ii) the ability to identify trends in our underlying business.
