Altigen Technologies Reports Second Quarter Results for Fiscal Year 2025

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

1. 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 [phone] (domestic) or [phone] (international), conference ID #531611. To access the replay, dial [phone] (domestic) or [phone] (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.

Contact:

• Altigen Communications, Inc.

• Investor Relations - [e-mail]

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.

SOURCE: Altigen Technologies

View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/computers-technology-and-internet/altigen-technologies-reports-second-quarter-results-for-fiscal-ye-1020941