SAN JOSE, CA / ACCESSWIRE / April 19, 2018 / Altigen Communications, Inc. (OTCQB: ATGN), a Silicon Valley based provider of Hosted Skype for Business and Contact Center solutions, announced today its financial results for the second quarter ended March 31, 2018.
Financial Highlights for the Quarter
- Revenue was $2.5 million, a 21% increase over the prior year second quarter
- Net income was $383,000 GAAP, $390,000 non-GAAP
Financial Highlights for the Six Months
- Revenue was $4.8 million, a 15% increase over the prior year
- Net income was $721,000 GAAP, $733,000 non-GAAP
- Working capital increased 36% to $2.1 million
Second Quarter 2018 Financial Results
Revenue for the second quarter of fiscal 2018 was $2.5 million, compared to $2.3 million in the preceding quarter, and compared to $2.0 million in the prior year quarter, representing an increase of 6% and 21%, respectively. Gross margin in the second quarter of fiscal 2018 was 84.3%, compared to 82.9% in the preceding quarter, and compared to 84.9% during the second quarter of fiscal 2017.
GAAP net income for the second quarter of fiscal 2018 was $383,000, or $0.02 per diluted share, compared with net income of $338,000, or $0.01 per diluted share in the preceding quarter, and compared to a net loss of $16,000, or $(0.00) per share during the same period a year ago.
Non-GAAP net income for the second quarter of fiscal 2018 was $390,000, or $0.02 per diluted share, compared with non-GAAP net income of $343,000, or $0.02 per diluted share in the preceding quarter, and compared to a non-GAAP net income of $11,000, or $0.00 per diluted share in the same period of the prior year.
Operating expenses totaled $1.7 million for the second quarter of fiscal 2018, compared with $1.6 million at the end of the first quarter of fiscal 2018, and compared with $1.7 million during the second quarter of fiscal 2017.
Year-to-Date Financial Results
For the first six months of fiscal year 2018, revenue grew 15% to $4.8 million, in comparison to $4.2 million during the same period in fiscal 2017. Gross margin was 83.6% for the first six months of fiscal 2018, compared to 84.9% in the same period in 2017.
GAAP net income for the six months ended March 31, 2018 was $721,000, or $0.03 per diluted share, compared with GAAP net income of $69,000, or $0.00 per diluted share in the prior year period.
Non-GAAP net income for the first six months of fiscal year 2018 was $733,000, or $0.03 per diluted share, compared with non-GAAP net income of $101,000, or $0.00 per diluted share during the same period a year ago.
Operating expenses for the six months of fiscal 2018 decreased $195,000, or 6% to $3.3 million, compared with $3.5 million during the same period a year ago.
Cash, Cash Equivalents and Restricted Cash
Our cash, cash equivalents and restricted cash totaled $4.2 million at the end of the second quarter of fiscal 2018, compared with $3.8 million at the end of the first quarter of fiscal 2018, and compared with $3.9 million at the end of fiscal 2017, representing an increase of 11% and 9%, respectively. Working capital was $2.1 million at the end of the second quarter of fiscal 2018, compared with $1.8 million at the end of the preceding quarter, and compared with $1.5 million at the end of fiscal 2017.
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) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #27691. 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. (OTCQB: ATGN), a leading Microsoft Cloud Solutions provider, delivers fully managed Unified Communications services, combining Hosted Skype for Business, Advanced Cloud PBX, and Innovative Cloud Contact Center applications with seamless integration to Office 365 for small-to-medium sized businesses and enterprises. Our unique and feature rich Cloud PBX and Multi-channel Contact Center solutions natively integrate with Skype for Business and Office 365 to deliver business-critical functionalities required by SMBs and enterprises. 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. Altigen's worldwide headquarters is in Silicon Valley, California. 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 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, many of which are outside of the Company's control. There can be no assurances that the Company will achieve 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.
Contact:
Carolyn David
Vice President of Finance
Altigen Communications, Inc.
Phone: 408-597-9033
www.altigen.com
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 2018 | FY 2017 | FY 2018 | FY 2017 | |||||||||||||
Net Revenue | $ | 2,456 | $ | 2,035 | $ | 4,773 | $ | 4,166 | ||||||||
Gross profit | 2,070 | 1,728 | 3,992 | 3,539 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Research and development | 748 | 721 | 1,450 | 1,418 | ||||||||||||
Selling, general & administrative | 940 | 1,021 | 1,820 | 2,047 | ||||||||||||
Operating income (loss) | 382 | (14) | 722 | 74 | ||||||||||||
Other income/(expense), net | 1 | (2) | 1 | (4) | ||||||||||||
Net income (loss) before provision for income taxes | 383 | (16) | 723 | 70 | ||||||||||||
Provision for income taxes | - | - | 2 | 1 | ||||||||||||
Net income (loss) | $ | 383 | $ | (16) | $ | 721 | $ | 69 | ||||||||
Basic and diluted net income per share | $ | 0.02 | $ | (0.00) | $ | 0.03 | $ | 0.00 | ||||||||
Weighted average shares outstanding - basic | 22,817 | 22,799 | 22,817 | 22,799 | ||||||||||||
Weighted average shares outstanding - diluted | 24,921 | 22,799 | 24,537 | 23,304 | ||||||||||||
Altigen Communications, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)
March 31, 2018 (unaudited) | September 30, 2017 (audited) | |||||||
Cash and cash equivalents | $ | 4,243 | $ | 3,876 | ||||
Accounts receivable, net | 408 | 255 | ||||||
Other current assets | 179 | 144 | ||||||
Net property and equipment | 135 | 46 | ||||||
Other long-term assets | 42 | 31 | ||||||
Total Assets | $ | 5,007 | $ | 4,352 | ||||
Current liabilities | $ | 2,739 | $ | 2,741 | ||||
Long-term liabilities | 192 | 272 | ||||||
Stockholders' equity | 2,076 | 1,339 | ||||||
Total liabilities and stockholders' equity | $ | 5,007 | $ | 4,352 | ||||
SOURCE: Altigen Communications, Inc.
