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AltiGen Communications, Inc. Reports Fourth Quarter and Fiscal Year 2012 Financial Results
SAN JOSE, CA, Nov 14, 2012 (MARKETWIRE via COMTEX) --
AltiGen Communications, Inc. (OTCQX: ATGN), the leading provider of
integrated Microsoft-based Unified Communications solutions,
announced today its financial results for the fourth quarter and
fiscal year ended September 30, 2012.
Fiscal Year 2012 Fourth Quarter Performance
Revenue for the fourth
quarter of fiscal year 2012 was $3.5 million, in comparison to $4.3
million for the fourth quarter of fiscal year 2011, a decrease of
18.6%. During the fourth quarter of fiscal 2012, net loss from
operations was $1.6 million, or a loss of $0.09 per share, compared
to a net loss of $861,000, or a loss of $0.05 per share, for the
fourth quarter of fiscal year 2011. The increase in net loss for 2012
was primarily the result of a one-time non-cash charge for excess
inventory of approximately $1.1 million.
Gross margin for the fourth quarter of fiscal year 2012 was 35.9%,
down from 64.2% in the fourth quarter of fiscal year 2011. The
decrease in gross margin in the fourth quarter of 2012 compared with
the prior-year fourth quarter was primarily due to an increase in
excess inventory reserves of $1.1 million. Operating expenses were
$2.9 million for the fourth quarter of fiscal year 2012, a decrease
of 21.6% from $3.7 million in the fourth quarter of fiscal year 2011.
Our expenses continued to decline due to our cost control measures
executed over the past year.
Fiscal Year 2012 Full Year Performance
For the twelve months ended
September 30, 2012, revenue was $16.9 million, compared to $17.7
million for fiscal 2011, a decrease of 4.5%. For fiscal 2012, net
loss from operations was $1.8 million, or a loss of $0.11 per share,
compared to a net loss of $2.7 million, or a loss of $0.16 per share,
for fiscal 2011.
Gross margin was 60.1% for the twelve-month period of fiscal 2012,
compared to 65.9% in the comparable period last year. The decrease in
gross margin for 2012 was primarily due to the aforementioned
increase in excess inventory reserves. Operating expenses were $11.9
million for fiscal year 2012, a decrease of 17.4% from $14.4 million
for fiscal 2011. Our expenses continued to decline due to our cost
control measures executed over the past year.
As of September 30, 2012, total cash and cash equivalents was $4.2
million and working capital was $1.3 million, compared to total cash
and cash equivalents of $4.3 million and working capital of $2.1
million as of September 30, 2011.
"Our fiscal fourth quarter revenues reflect the continued softness in
the overall premise PBX business. While we do not anticipate
significant improvements in this business in the foreseeable future
we do expect to see growth from our new MaxCloud hosted PBX business,
which we plan to launch in calendar Q1," said Jeremiah Fleming,
AltiGen's President & CEO. "MaxCloud, which leverages our all
software MaxCS IP PBX, will enable AltiGen's base of more than 7,500
premise-based PBX systems to seamlessly migrate those systems to the
cloud. AltiGen MaxCloud customers will benefit from greater
functionality combined with lower overall communications costs."
"During the quarter we also experienced a significant slowdown in
sales of the iFusion SmartStations due to the release of Apple's
iPhone 5, as its new Lightning connector is not compatible with the
previous Apple 30 pin connector. While we are continuing to sell the
iFusions to iPhone 4 customers we are also diligently working to
incorporate the new Lightning connector into these devices. This
slowdown in unit sales has required us to make an allowance for
excess inventory, for which the $1.1 non-cash charge was recorded in
the quarter," said Mr. Fleming.
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) 660-6853 (domestic) or (201) 612-7415
(international), account #286 conference ID #403572. 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) is a leading provider of 100% Microsoft-based VoIP business
phone systems and Unified Communications solutions. Having more than
10,000 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, with international operations based in Shanghai,
China. Local sales, service and support are provided by AltiGen's
worldwide network of over 300 certified partners. For more
information, call 1-888-ALTIGEN or visit the web site at
www.altigen.com.
Safe Harbor Statement
The Forward-looking statements contained in
this press release are based upon the Company's current expectations,
beliefs, plans and assumptions, which are subject to a number of
risks and uncertainties including, but not limited to: statements
regarding the continued market acceptance of our 100 percent
Microsoft-based business phone systems and call center solutions; our
ability to successfully launch our new MaxCloud hosted PBX business
and our ability to incorporate the new Lightning connector into the
iFusion SmartStation. Actual results in future periods are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected.
The forward-looking statements contained in this press release are
also subject to unknown risks and uncertainties, including but not
limited to, risks related to AltiGen's limited operating history. For
a more detailed description of AltiGen's performance, please refer to
AltiGen's audited Annual Report filed with the OTCQX over-the-counter
market for the fiscal year ended September 30, 2011. Since these
statements involve risks and uncertainties and are subject to change
at any time, the Company's actual results could differ materially
from expected results. Forward-looking statements speak only as of
the date the statement was made. The Company does not undertake any
obligation to update any forward-looking statements.
AltiGen Communications, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
----------------------------------------------------------------------------
Fourth Quarter Ended Twelve Months Ended
September 30, September 30,
FY 2012 FY 2011 FY 2012 FY 2011
--------- --------- --------- ---------
Net Revenue $ 3,530 $ 4,346 $ 16,941 $ 17,672
Gross profit 1,269 2,790 10,182 11,654
Research and development 1,225 1,557 4,756 6,220
Selling, general &
administrative 1,631 2,100 7,140 8,170
--------- --------- --------- ---------
Operating loss (1,587) (867) (1,714) (2,736)
Interest and other income, net 2 6 (57) 37
--------- --------- --------- ---------
Net loss before tax (1,585) (861) (1,771) (2,699)
Provision for income tax - - 1 1
--------- --------- --------- ---------
Net loss after tax $ (1,585) $ (861) $ (1,772) $ (2,700)
========= ========= ========= =========
Basic and diluted net loss per
share (0.09) (0.05) (0.11) (0.16)
Weighted average shares
outstanding 16,732 16,672 16,732 16,580
----------------------------------------------------------------------------
----------------------------------------------------------------------------
September 30, 2012 September 30, 2011
------------------ ------------------
Cash and cash equivalents $ 4,152 $ 4,257
Short-term investments - -
Accounts receivable, net 1,452 1,230
Inventories 1,890 2,897
Other current assets 196 229
Net property and equipment 338 793
Other long-term assets 119 498
------------------ ------------------
Total Assets $ 8,147 $ 9,904
================== ==================
Current liabilities $ 6,354 $ 6,518
Long-term liabilities 200 383
Stockholders' equity 1,593 3,003
------------------ ------------------
Total Liabilities and Stockholders'
Equity $ 8,147 $ 9,904
================== ==================
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SOURCE: AltiGen Communications
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