SAN JOSE, CA--(Marketwired - Aug 13, 2014) - AltiGen Communications, Inc. (
During the second quarter of fiscal year 2014, the Company made a strategic decision to discontinue and write-down its wholly-owned subsidiary business unit- China segment. As a result, the financial results from that business unit are reported as discontinued operations in the financial tables of this press release. Prior year results have been retrospectively revised to reflect the discontinued operations. The parent company will continue to report results as continued operations.
Results from Operations
Revenue for the third quarter of fiscal 2014 was $2.2 million, compared to $2.7 million during the same period in fiscal 2013. Gross margin in the third quarter of fiscal 2014 was 69.8%, compared to 70.2% during the same period in fiscal 2013. Operating expenses for the third quarter of fiscal 2014 totaled $1.7 million, compared to $1.9 million during the same period in fiscal 2013.
Consolidated net loss for the third quarter of fiscal 2014 was $155,000, or a loss of $0.01 per share, compared to net loss of $369,000, or a loss of $0.02 per share during the third quarter of fiscal 2013. This includes operating loss from continuing operations of $152,000 for the three months ended June 30, 2014, as compared to $3,000 for the three months ended June 30, 2013.
For the nine-month period ending June 30, 2014, revenue was $7.1 million, compared to $8.4 million during the same period in fiscal 2013. Gross margin was 71.5% for the nine-month period of fiscal 2014, compared to 69.7% in the comparable period last year. Operating expenses decreased to $5.5 million in fiscal 2014 from $6.1 million in fiscal 2013.
Consolidated net loss for the nine months of fiscal 2014 was $778,000, or a loss of $0.03 per share, compared to net loss of $922,000, or a loss of $0.06 per share during the same period in fiscal 2013. This includes operating loss from continuing operations of $407,000 for the nine months ended June 30, 2014, as compared to $259,000 for the nine months ended June 30, 2013.
The Company had total cash and cash equivalents of $3.9 million from its continuing operations as of June 30, 2014.
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 #13588302. 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. (
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 market acceptance of our premise and cloud-based IP-PBX and Contact Center solutions. 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, 2013. 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.
| Condensed Consolidated Statement of Operations | ||||||||||||||||
| (Amount in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Third Quarter Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net Revenue | $ | 2,247 | $ | 2,702 | $ | 7,103 | $ | 8,390 | ||||||||
| Gross profit | 1,569 | 1,896 | 5,080 | 5,851 | ||||||||||||
| Research and development | 695 | 766 | 2,184 | 2,279 | ||||||||||||
| Selling, general & administrative | 1,026 | 1,133 | 3,303 | 3,831 | ||||||||||||
| Operating loss from continuing operations (1) | (152 | ) | (3 | ) | (407 | ) | (259 | ) | ||||||||
| Operating loss from discontinued operations (2) | - | (363 | ) | (361 | ) | (653 | ) | |||||||||
| Interest and other income, net | (3 | ) | (3 | ) | (9 | ) | (9 | ) | ||||||||
| Net loss before income taxes | (155 | ) | (369 | ) | (777 | ) | (921 | ) | ||||||||
| Provision for income tax | - | - | 1 | 1 | ||||||||||||
| Net loss after taxes | $ | (155 | ) | $ | (369 | ) | $ | (778 | ) | $ | (922 | ) | ||||
| Basic and diluted net loss per share | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.06 | ) | ||||
| Weighted average shares outstanding | 23,399 | 16,732 | 23,399 | 16,732 | ||||||||||||
| (1) | Operating loss from continuing operations includes revenue generated from the following segments: North America and Rest of World. |
| (2) | Operating loss from discontinued operations includes revenue generated from the China segment. |
| Condensed Consolidated Balance Sheets | ||||||||||
| (Amounts in thousands, except per share data) | ||||||||||
| June 30, 2014 (Unaudited) | September 30, 2013 (Adjusted) | September 30, 2013 (Audited) | ||||||||
| (1) | (2) | |||||||||
| Cash and cash equivalents | $ | 3,878 | $ | 2,942 | $ | 3,433 | ||||
| Accounts receivable, net | 376 | 467 | 1,177 | |||||||
| Inventories | 826 | 1,020 | 1,323 | |||||||
| Other current assets | 118 | 164 | 282 | |||||||
| Net property and equipment | 156 | 122 | 125 | |||||||
| Other long-term assets | 31 | - | 88 | |||||||
| Total Assets | $ | 5,385 | $ | 4,715 | $ | 6,428 | ||||
| Current liabilities | $ | 4,894 | $ | 4,838 | $ | 5,834 | ||||
| Long-term liabilities | 250 | 106 | 113 | |||||||
| Stockholders' equity | 241 | (229 | ) | 481 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 5,385 | $ | 4,715 | $ | 6,428 | ||||
| (1) | In connection with the discontinued China operations, a write-down of approximately $6.7 million was recorded during the second quarter of fiscal 2014, which includes investments, accounts receivables and other assets and liabilities. The resulting write-down had no impact on our cash and cash equivalents. |
| (2) | Prior year results have been retrospectively revised to reflect the discontinued China operations for comparison purposes. |