AltiGen Communications, Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

AltiGen Communications, Inc. Reports Fourth Quarter and Fiscal Year 2013 
Financial Results 
SAN JOSE, CA -- (Marketwired) -- 11/20/13 --  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, 2013. 
Fiscal Year 2013 Fourth Quarter Performance
 Revenue for the fourth
quarter of fiscal year 2013 was $2.8 million, in comparison to $3.5
million for the fourth quarter of fiscal year 2012, a decrease of
20%. During the fourth quarter of fiscal 2013, net loss from
operations was $398,000, or a loss of $0.02 per share, compared to a
net loss of $1.6 million, or a loss of $0.09 per share, for the
fourth quarter of fiscal year 2012. The decrease in net loss was
approximately 75% and was the result of a significant increase in
gross profit percentage as well as a significant reduction in overall
operating expenses. 
Gross margin for the fourth quarter of fiscal year 2013 was 71.2%, up
from 35.9% in the fourth quarter of fiscal year 2012. The increase in
gross margin in the fourth quarter of 2013 compared with the
prior-year fourth quarter was primarily due to reduced cost of goods
as a result of a one-time adjustment of $1.1 million in excess
inventory reserves recorded in the fourth quarter of 2012. Operating
expenses were $2.5 million for the fourth quarter of fiscal year
2013, a decrease of 13.8% from $2.9 million in the fourth quarter of
fiscal year 2012. Our expenses continued to decline due to our cost
control measures executed over the past year. 
Fiscal Year 2013 Full Year Performance
 For the twelve months ended
September 30, 2013, revenue was $13.1 million, compared to $16.9
million for fiscal 2012, a decrease of 22.5%. For fiscal 2013, net
loss from operations was $1.3 million, or a loss of $0.08 per share,
compared to a net loss of $1.8 million, or a loss of $0.11 per share,
for fiscal 2012. 
Gross margin was 71.2% for the twelve-month period of fiscal 2013,
compared to 60.1% in the comparable period last year. The increase in
gross margin for 2013 was primarily due to the aforementioned reduced
cost of goods as a result of a one-time adjustment of $1.1 million in
excess in
ventory reserves recorded in fiscal 2012. Operating expenses
were $10.6 million for fiscal year 2013, a decrease of 10.9% from
$11.9 million for fiscal 2012. Our expenses continued to decline due
to our cost control measures executed over the past year. 
As of September 30, 2013, total cash and cash equivalents was $3.4
million, compared to total cash and cash equivalents of $4.2 million
as of September 30, 2012.  
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 #382731. 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.
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, 2012. 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 2013     FY 2012     FY 2013     FY 2012  
                              ---------   ---------   ---------   --------- 
Net Revenue                   $   2,849   $   3,530   $  13,051   $  16,941 
Gross profit                      2,029       1,269       9,289      10,182 
                                                                            
Research and development            987       1,225       4,000       4,756 
Selling, general &                                                          
 administrative                   1,477       1,631       6,658       7,140 
                              ---------   ---------   ---------   --------- 
                                                                            
Operating loss                     (435)     (1,587)     (1,369)     (1,714)
                                                                            
Interest and other income,                                                  
 net                                 37           2          49         (57)
                              ---------   ---------   ---------   --------- 
                                                                            
Net loss before tax                (398)     (1,585)     (1,320)     (1,771)
                                                                            
Provision for income tax              -           -          (1)         (1)
                              ---------   ---------   ---------   --------- 
                                                                            
Net loss after tax            $    (398)  $  (1,585)  $  (1,
321)  $  (1,772)
                              =========   =========   =========   ========= 
                                                                            
Basic and diluted net loss                                                  
 per share                        (0.02)      (0.09)      (0.08)      (0.11)
                                                                            
Weighted average shares                                                     
 outstanding                     16,732      16,732      16,732      16,732 
                                                                            
                                                                            
                                                                            
                        AltiGen Communications, Inc.                        
                   Condensed Consolidated Balance Sheets                    
                           (Amounts in thousands)                           
                                                                            
                                                September 30,     September 
                                                     2013         30, 2012  
                                                -------------  -------------
Cash and cash equivalents                       $       3,433  $       4,152
Short-term investments                                      -              -
Accounts receivable, net                                1,177          1,452
Inventories                                             1,323          1,890
Other current assets                                      282            196
Net property and equipment                                125            338
Other long-term assets                                     88            119
                                                -------------  -------------
Total Assets                                    $       6,428  $       8,147
                                                =============  =============
                                                                            
Current liabilities                             $       5,834  $       6,354
Long-term liabilities                                     113            200
Stockholders' equity                                      481          1,593
                                                                            
                                                -------------  -------------
Total Liabilities and Stockholders' Equity      $       6,428  $       8,147
                                                =============  =============

  
Contact:
Phil McDermott 
Chief Financial Officer 
AltiGen Communications 
Phone: 408-597-9000
www.altigen.com