Altigen Communications, Inc. Reports Fourth Quarter and Fiscal Year 2017 Financial Results

SAN JOSE, CA / ACCESSWIRE / November 29, 2017 / 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 fourth quarter and fiscal year ended September 30, 2017.

Fourth Quarter Fiscal 2017 Financial Highlights

• Total revenue increased 5% to $2.1 million
• Net income was $212,000 GAAP, $216,000 non-GAAP
• Operation expenses decreased $651,000, or 29% compared to fourth quarter fiscal 2016

Fiscal Year 2017 Financial Highlights

• Total revenue was $8.4 million
• Net income was $379,000 GAAP, $466,000 non-GAAP
• Gross margin increased 2 basis points to 84.9%
• Operation expenses decreased $1.1 million, or 14% year-over-year

"Our fiscal 2017 financial results demonstrate the solid progress we've made in our multi-year plan to establish Altigen as a Cloud Communications company," said Jeremiah Fleming Altigen's President & CEO. "Our decision to eliminate hardware from our product mix, with a corresponding focus on our software solutions, has enabled us to increase our recurring revenues. Our objective is to continue to focus on increasing our SaaS and Cloud revenues in fiscal 2018 and beyond."

Fourth Quarter Fiscal Year 2017 Financial Results

Total revenue for fiscal 2017 fourth quarter grew 5.3% to $2.1 million, in comparison to $2.0 million in the same quarter last year. Gross margin decreased 3.0 basis points to 84.6% for the fourth of fiscal year 2017, compared to 87.6% in the comparable period last year.

GAAP net income for the fourth quarter of fiscal 2017 was $212,000, or $0.01 per diluted share, compared with GAAP net loss of ($469,000), or $(0.02) per share, for the comparable period of the prior year.

Non-GAAP net income for the fourth quarter of fiscal 2017 was $216,000, or $0.01 per diluted share, compared with non-GAAP net income of $104,000, or $0.00 per diluted share for the fourth quarter of fiscal 2016.

Operating expenses for the fourth quarter of fiscal 2017 decreased $651,000, or 29% to $1.6 million, compared to $2.2 million during the same period a year ago, primarily due to a one-time litigation expense recorded in the fourth quarter of fiscal 2016 related to a civil lawsuit filed against the Company by a former Board member on April 3, 2015. In connection with such claim, we recorded an accrual of approximately $568,000 in the fourth quarter of fiscal 2016. For additional information, please refer to the Company's filings with the OTCQB over-the-counter market, including the Company's most recent Quarterly Report filed on August 17, 2017.

Full Year Fiscal 2017 Financial Results

For the twelve months ended September 30, 2017 and 2016, revenue was $8.4 million.

Gross margin increased 2.1 basis points to 84.9% for the twelve-month period of fiscal 2017, compared to 82.8% in the comparable period last year.

GAAP net income for fiscal 2017 was $379,000, or $0.02 per diluted share, compared with GAAP net loss of ($835,000), or $(0.04) per share for fiscal 2016.

Non-GAAP net income for fiscal 2017 was $466,000, or $0.02 per diluted share, compared with non-GAAP net loss of ($1,000), or $(0.00) per share for fiscal 2016.

For the full year, operating expenses decreased $1.1 million, or 14% to $6.7 million for fiscal 2017, compared to $7.8 million for fiscal 2016. The decrease in operating expenses, as well as the increase in GAAP net income for fiscal 2017, was attributable to the aforementioned one-time litigation expense recorded in the fourth quarter of fiscal 2016.

Cash, Cash Equivalents and Restricted Cash

Our cash, cash equivalents, and restricted cash decreased $614,000, or 14% to $3.9 million at September 30, 2017, compared to $4.5 million in the comparable period last year. The decrease in cash was primarily attributable to a litigation expense related to a civil lawsuit paid in the first quarter of fiscal 2017. Working capital was $1.5 million at September 30, 2017, compared to $1.1 million at September 30, 2016.

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), account #286 conference ID #22829. 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 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: our ability to increase revenue in fiscal 2018 and beyond; our ability to successfully market our cloud-based services, and we may not achieve or maintain profitability in the future. 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

SOURCE: Altigen Communications, Inc.