AltiGen Communications, Inc. Reports Fiscal 2017 Second Quarter and First Six Months Financial Results

Press Release

SAN JOSE, CA–(Marketwired – Apr 19, 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 second quarter ended March 31, 2017.

Second Quarter Fiscal Year 2017 Results
Revenue for the second quarter of fiscal 2017 was $2.0 million, compared to $2.1 million in the preceding quarter, and compared to $2.2 million during the same period in fiscal 2016. Gross margin in the second quarter of fiscal 2017 was 84.9%, compared to 85.0% in the preceding quarter, and compared to 81.5% during the second quarter of fiscal 2016.

GAAP net loss for the second quarter of fiscal 2017 was $16,000, or $(0.00) per share, compared with net income of $85,000, or $0.00 per diluted share in the preceding quarter, and compared to a net income of $35,000, or $0.00 per diluted share during the same period a year ago.

Non-GAAP net income for the second quarter of fiscal 2017 was $11,000, or $0.00 per diluted share, compared with non-GAAP net income of $90,000, or $0.00 per diluted share in the preceding quarter, and compared to a non-GAAP net income of $115,000, or $0.00 per diluted share in the same period in 2016.

Operating expenses totaled $1.7 million for the second quarter of fiscal 2017, the same as in the preceding quarter and for the second quarter of fiscal 2016.

Six Month Fiscal Year 2017 Results
For the first six months of fiscal year 2017, revenue was $4.2 million, compared to $4.4 million during the same period in fiscal 2016. Gross margin was 84.9% for the first six months of fiscal 2017, compared to 81.1% in the same period in 2016.

GAAP net income for the six months ended March 31, 2017 was $69,000, or $0.00 per diluted share, compared with GAAP net income of $64,000, or $0.00 per diluted share in the prior year period.

Non-GAAP net income for the first six months of fiscal year 2017 was $101,000, or $0.00 per diluted share, compared with non-GAAP net income of $261,000, or $0.01 per diluted share during the same period a year ago.

Operating expenses for the six month of fiscal 2017 totaled $3.5 million, the same as in the comparable period last year.

Cash, Cash Equivalents and Restricted Cash
As of March 31, 2017, total cash, cash equivalents and restricted cash was $3.8 million and working capital was $1.2 million, the same as in the preceding quarter.

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 https://www.altigen.com. To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), account #286 conference ID #10323. A web archive will be made available at www.altigen.com for 90 days following the call’s conclusion.

About AltiGen Communications, Inc.
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. 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.

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