Altigen Communications, Inc. Reports First Quarter Results for Fiscal Year 2023

Revenue increased 26.6%; GAAP Loss Per Share of ($0.01); Non-GAAP diluted EPS of $0.00

 Milpitas, CA – January 31, 2023 – Altigen Communications, Inc. (OTCQB: ATGN), a Silicon Valley-based cloud solutions provider for the Unified Communications as a Service (UCaaS), Contact Center as a Service (CCaaS) and our Customer Engagement as a Service (CEaaS) markets, announced today its financial results for the first quarter ended December 31, 2022.

Jerry Fleming, CEO of Altigen said: “Our first quarter results reflected the continuation of our efforts to manage our existing business at a break-even run rate, as we roll out new and updated products that we expect to drive future revenue and profit growth.  During the quarter we have now launched our new UCaaS platform, MaxCloud, which is deployed in both Altigen’s and Fiserv’s datacenters, to serve our respective customers.  We also launched a new version of our FrontStage CCaaS solution in conjunction with Fiserv, targeting financial services institutions.  Finally, just after quarter close, we released a major new version of CoreInteract for Microsoft Teams enabling us to address our customer’s requirements for a cost-effective departmental customer engagement platform.

“In summary, our business has remained stable while we’ve been working hard on the introduction of multiple new products. We are positioned to see a return to revenue growth, margin expansion and higher profits as these ramp.”

First Quarter Highlights (Fiscal 2023 versus Fiscal 2022)

  • Net Revenue increased 26.6% to $3.5 million;
  • Gross margin decreased to 63.8%, compared with 72.0%;
  • GAAP net loss and loss per share of ($0.2) million and ($0.01), respectively;
  • Non-GAAP net income and non-GAAP diluted EPS of $0.04 million and $0.00, respectively, compared to $0.3 million and $0.01, respectively.
Select Financial Metrics*: FY23 versus FY22
 (in thousands, except for EPS and percentages) Fiscal
Total Revenue $3,460 $2,732 26.6%
Cloud Services $1,822 $1,910 -4.6%
Professional and Other Services $1,174 $138 750.7%
Legacy Products $464 $684 -32.2%
Software Assurance $424 $506 -16.2%
Perpetual Software License $40 $178 -77.5%
GAAP Operating (Loss)/Income ($188) $10 nm
Operating Margin -5.4% 0.4%  
Non-GAAP Operating (Loss)/Income ($156) $66 nm
Non-GAAP Operating Margin -4.5% 2.4%  
GAAP Net Loss ($187) $11 nm
GAAP (Loss)/Earnings Per Share ($0.01) $0.00 nm
Non-GAAP Net Income $44 $313 -85.9%
Non-GAAP Diluted Earnings Per Share $0.00 $0.01 -82.7%
Adjusted EBITDA1 $44 $312 -85.9%
Cash Flow from Operations ($167) $110 nm
nm = not measurable/meaningful; *may not add up due to rounding

1 Throughout this release, the use of Adjusted EBITDA and other non-GAAP financial measures are intended to provide useful information that supplements Altigen’s results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measure at the end of this release for an explanation of Altigen’s formulation of Adjusted EBITDA and reconciliations to the most directly comparable GAAP measure.

 Conference Call

Altigen will be discussing its financial results and outlook on a conference call today at 1:30 p.m. Pacific Time (4:30 a.m. ET). The conference call can be accessed by dialing (877) 545-0523 (domestic) or (973) 528-0016 (international), conference ID #766643. A live webcast will also be made available at To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #47565. A web archive will be made available at for 90 days following the call’s conclusion.

About Altigen Communications

Altigen Communications Inc. (OTCQB: ATGN), based in Silicon Valley, is a leading Microsoft Cloud Solutions provider, delivering fully managed Cloud-based Unified Communications services based on the Microsoft platform. Our SIP trunk services, enterprise customer engagement and innovative cloud contact center solutions seamlessly integrate with Microsoft Teams to enhance and extend the business communications capabilities for our customers. Altigen’s solutions are designed for high reliability, ease of use, seamless integration into Microsoft technologies, all delivered as fully managed cloud services. Our solutions are available through our global network of certified resellers. For more information, call 1-888-ALTIGEN or visit our website at

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, many of which are outside 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.


Brian Siegel, IRC, MBA

Senior Managing Director

Hayden IR

(346) 396-8696


(Unaudited, amounts in thousands)
  December 31, 2022 September 30, 2022  
Current assets:
Cash and cash equivalents $                           2,880 $                           3,232
Accounts receivable, net                           1,425                           1,220
Other current assets                              299                              206
Total current assets                           4,604                           4,658
Property and equipment, net                                   6                                   7
Operating lease right-of-use assets                              483                              572
Goodwill                           2,725                           2,725
Intangible assets, net                           1,836                           1,882
Capitalized software development cost, net                           1,363                           1,331
Deferred tax asset                           6,493                           6,493
Other long-term assets                                 37                                 37
Total assets $                         17,547 $                         17,705
Current liabilities:
Accounts payable  $                            46  $                            53
Accrued compensation and benefits                              332                              364
Accrued expenses                              618                              530
Acquisition-related contingent consideration – current                              500                              500
Operating lease liabilities, current                              366                              383
Deferred revenue – current                              631                              566
Total current liabilities                           2,493                           2,396
Contingent consideration on acquired business – long-term                              670                              670
Operating lease liabilities – long-term                              156                              233
Deferred revenue – long-term                              184                              206
Total liabilities                           3,503                           3,505
Stockholders’ equity:
Common stock                                 24                                 24
Treasury stock                          (1,565)                          (1,565)
Additional paid-in capital                         72,702                         72,671
Accumulated deficit                       (57,117)                       (56,930)
Total stockholders’ equity                         14,044                         14,200
Total liabilities and stockholders’ equity $                         17,547 $                         17,705




(amounts in thousands, except per share data)
Three Months Ended
December 31,
  2022 2021
Net revenue $           3,460 $           2,732
Gross profit           2,208           1,966
Operating expenses:
Research and development             1,250             1,022
Selling, general & administrative           1,145           934
Operating (loss) income              (187)              10
Other income/(expense), net                   –                   1
Net (loss) income before provision for income taxes              (187)                11
Net (loss) income $              (187) $              11
Per share data:
     Basic $             (0.01) $             0.00
     Diluted $ (0.01) $             0.00
Weighted average shares outstanding:
     Basic 24,223 23,759
     Diluted 24,223 25,533

















(Unaudited, amounts in thousands)

  Three Months Ended

December 30,

  2022 2021
Cash flows from operating activities:
Net (loss) income $ (187) $ 11
Adjustments to reconcile net income to net cash from operating activities:
     Depreciation and amortization 1 4
     Amortization of intangible assets 46 44
     Amortization of capitalized software 153 198
     Stock-based compensation 31 56
Changes in operating assets and liabilities:
     Accounts receivable and unbilled accounts receivable (205) 10
     Prepaid expenses and other current assets (93) (124)
     Other long-term assets                – 8
     Accounts payable (7) (50)
     Accrued expenses 51 (55)
     Deferred revenue 43 8
         Net cash (used in)/ provided by operating activities (167) 110
Cash flows from investing activities:
Capitalized software development costs (185) (103)
         Net cash used in investing activities (185) (103)
Cash flows from financing activities:
Proceeds from issuances of common stock                – 18
         Net cash provided by financing activities                  – 18
Net (decrease)/ increase in cash and cash equivalents   (352) 25
Cash and cash equivalents, beginning of period 3,232 6,799
Cash and cash equivalents, end of period $ 2,880 $ 6,824















(amounts in thousands, except per share data)
Three Months Ended
December 31,
  2022 2021
Reconciliation of GAAP to Non-GAAP Gross Profit:  
GAAP gross profit $           2,208 $           1,966
Amortization of capitalized software               137               162
Amortization of acquired customer relationships                 40                 44
Non-GAAP gross profit $           2,385 $           2,172
Reconciliation of GAAP to Non-GAAP Expenses:
GAAP operating expenses $ 2,395 $ 1,956
Depreciation and amortization 1 4
Amortization of capitalized software                 16                 35
Amortization of intangible assets 6
Stock-based compensation 31 56
Non-GAAP operating expenses $           2,341 $           1,861
Reconciliation of GAAP to Non-GAAP Net Income:
GAAP net income $ (187) $ 11
Depreciation and amortization 1 4
Amortization of capitalized software              153              197
Amortization of intangible assets 46 44
Stock-based compensation 31 56
Non-GAAP net income $              44 $              312
Per share data:
     Basic $             0.00 $             0.01
     Diluted $             0.00 $             0.01
Weighted average shares outstanding:
     Basic 24,223 23,759
     Diluted 25,632 25,533


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.