SAN JOSE, CA–(Marketwired – Jan 25, 2017) – AltiGen Communications, Inc. (OTCQX: ATGN), a Silicon Valley based Microsoft Cloud Solutions provider, delivering fully managed Unified Communications services, announced today its financial results for the first quarter ended December 31, 2016.
Revenue for the first quarter of fiscal 2017 was $2.1 million, compared to $2.0 million in the preceding quarter, and compared to $2.2 million during the same period in fiscal 2016. Gross margin in the first quarter of fiscal 2017 was 85.0%, compared to 87.6% in the preceding quarter, and compared to 80.8% during the first quarter of fiscal 2016.
GAAP net income for the first quarter of fiscal 2017 was $85,000, or $0.00 per diluted share, compared with net loss of $469,000, or $(0.02) per share in the preceding quarter, and compared to a net income of $30,000, or $0.00 per diluted share in the same period in 2016.
Non-GAAP net income for the first quarter of fiscal 2017 was $90,000, or $0.00 per diluted share, compared with net income of $104,000, or $0.00 per diluted share in the preceding quarter, and compared to a net income of $146,000, or $0.01 per diluted share in the same period in 2016.
Operating expenses totaled $1.7 million for the first quarter of fiscal 2017, compared to $2.2 million in the preceding quarter, and $1.8 million during the same period in fiscal 2016. The decrease in operating expenses compared to the preceding quarter was primarily attributable to a one-time litigation expense related to a civil lawsuit recorded during the fourth quarter of fiscal 2016. For further information, please refer to the Company’s audited Annual Report filed with the OTCQB over-the-counter market on December 21, 2016.
Cash, Cash Equivalents and Restricted Cash
Our cash, cash equivalents and restricted cash totaled $3.8 million at the end of the first quarter, compared to $4.5 million at the end of the preceding quarter. Working capital increased to $1.2 million at the end of the first quarter, compared to $1.1 million as of September 30, 2016. The decrease in cash, cash equivalents and restricted cash was primarily attributable to the aforementioned litigation award paid in the first quarter of fiscal year 2017.
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 https://www.altigen.com. To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), account #286 conference ID #10189. 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. (OTCQX: 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. 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 release may contain forward-looking statements. Forward-looking statements are based only on the Company’s views of future events and financial performances, current expectations, beliefs, plans and assumptions. They are subject to known and unknown risks and uncertainties, many of which are outside of the Company’s control that may cause the Company’s actual results to be materially different from planned or expected results. There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations. 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.