Wearables Authors: Elizabeth White, Pat Romanski, Liz McMillan, David Paquette, Carmen Gonzalez

News Feed Item

AltiGen Communications, Inc. Reports Fourth Quarter and Fiscal Year 2012 Financial Results

SAN JOSE, CA -- (Marketwire) -- 11/14/12 -- 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
                                       ================== ==================


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?