ALTIGEN COMMUNICATIONS, INC. 
By SAN JOSE, CA -- (MARKET WIRE) -- 04/20/2011 -- AltiGen Communications, Inc. (OTCQX: ATGN) (PINKSHEETS: ATGN), the leading provider of integrated Microsoft-based Unified Communications solutions, today announced results for its fiscal 2011 second quarter ended March 31, 2011.
Financial Results
Net revenue for the second quarter was $4.2 million, a decrease of 9% from the $4.6 million reported in the first quarter of fiscal 2011, and a decrease of 5% from the $4.4 million reported in the comparable period last year. Gross margin in the second quarter of fiscal 2011 was 67.3%, compared to 67.6% in the preceding quarter, and compared to 66.1% for the same period in fiscal 2010. Operating expenses totaled $3.4 million, compared to $3.5 million reported in the preceding quarter, and compared to $3.3 million for the prior year's second quarter.
Net loss from continuing operations for the second quarter of fiscal 2011 was $576,000, or $0.03 per share. This compares with a net loss of $372,000, or $0.02 per share, in the first quarter, and a net loss of $340,000, or $0.02 per share during the second quarter of fiscal 2010. Total cash and cash equivalents, plus short term investments at March 31, 2011 were $6.2 million, compared to $6.8 million at December 31, 2010.
The Company reported revenue for the six-month period of $8.8 million, an increase of 2% compared to $8.6 million for the comparable period last year. Net loss for the six month period was $948,000, or $0.06 per share compared to net loss of $810,000, or $0.05 per share for the comparable period last year.
New Product
In January 2011 we announced our revolutionary new smartphone communications docking station, the iFusion SmartStation, at MacWorld in San Francisco. Targeted at the business user, the iFusion integrates a "traditional" desktop phone handset and full duplex speakerphone to smartphones, enabling organizations to replace the need for desktop office phones while also addressing the requirements of mobile and remote employees. In February, at Mobile World Congress in Barcelona, we announced our new MaxMobile for BroadSoft's BroadWorks suite of smartphone business communications applications. MaxMobile extends business PBX and Unified Communications functionality to smartphone devices and, by natively integrating with the BroadWorks platform, enables AltiGen to target BroadSoft's base of more than 450 fixed line and mobile network operators.
Jeremiah Fleming, AltiGen's President and Chief Executive Officer, stated, "We are very excited about our new Unified Mobile Convergence (UMC) Solutions, which will enable AltiGen to uniquely address new opportunities in both the enterprise and service provider markets. The fact that revenue was down during the second quarter is a reflection of the softness of the SMB business without a corresponding contribution from our new UMC solutions. However, as these solutions will now begin shipping, we expect to see a positive contribution to revenue in the current and future quarters."
Philip McDermott, AtiGen's Chief Financial Officer, stated, "We continue to remain cautiously optimistic regarding our outlook as the economy continues a slow recovery. We remain focused on improving our bottom line and feel good about our prospects as we enter the second half of fiscal year 2011."
Conference Call
AltiGen will conduct a conference call with investment professionals at 2:00 p.m. Pacific Time (5:00 p.m. ET) today, April 20, 2011 to discuss AltiGen's results of operations for the its second quarter fiscal 2011. Dial (877) 407-8031 (domestic) or (201) 689-8031 (international) to listen in to the call. A live webcast will also be made available at www.altigen.com. To access the replay, dial (877) 660-6853 (domestic) or (201) 612-7415 (international), account #286 conference ID #371112. 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. (PINKSHEETS: ATGN) (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; customer acceptance and a positive contribution to revenues in the coming quarters of the recently introduced iFusion SmartStation and the MaxMobile for Broadsoft's Broadworks products in both the enterprise and service provider markets; continued economic improvements; and our feel good expectations about our prospects for the second half of fiscal year 2011. Our expectations and beliefs regarding these matters may not materialize, and 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 other risks and uncertainties, including those more fully described in AltiGen's filings with the Securities and Exchange Commission, including our annual report filed on Form 10-K for the fiscal year ended September 30, 2010. 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)
Second Quarter Ended Six Months Ended
March 31, March 31,
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FY 2011 FY 2010 FY 2011 FY 2010
----------- ----------- ----------- -----------
Net Revenue $ 4,181 $ 4,421 $ 8,788 $ 8,642
Gross profit 2,813 2,924 5,929 5,734
Research and development 1,374 1,087 2,871 2,234
Selling, general &
administrative 2,022 2,178 4,019 4,332
----------- ----------- ----------- -----------
Operating loss (583) (341) (961) (832)
Interest and other
income, net 7 1 14 23
----------- ----------- ----------- -----------
Net loss before tax (576) (340) (947) (809)
Provision for income tax - - 1 1
----------- ----------- ----------- -----------
Net loss after tax $ (576) $ (340) $ (948) $ (810)
=========== =========== =========== ===========
Basic and diluted net
loss per share (0.03) (0.02) (0.06) (0.05)
Weighted average shares
outstanding 16,520 16,430 16,507 16,361
March 31, 2011 September 30, 2010
------------------ ------------------
Cash and cash equivalents $ 4,980 $ 3,776
Short-term investments 1,255 2,748
Accounts receivable, net 703 1,018
Inventories 1,482 1,385
Other current assets 291 345
Net property and equipment 747 613
Other long-term assets 478 476
------------------ ------------------
Total Assets $ 9,936 $ 10,361
================== ==================
Current liabilities $ 5,250 $ 5,085
Long-term liabilities 450 469
Stockholders' equity 4,236 4,807
------------------ ------------------
Total Liabilities and Stockholders'
Equity $ 9,936 $ 10,361
================== ==================Contact:Phil McDermott Chief Financial Officer AltiGen Communications (408) 597-9000
