SAN JOSE, CA — (Marketwired) — 11/19/14 — AltiGen Communications, Inc. (OTCQX: ATGN), a leading provider of premise and cloud-based IP-PBX and Contact Center solutions, announced today its financial results for the fourth quarter and fiscal year ended September 30, 2014.
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 of this write-down, 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. Furthermore, our operation has been categorized into two reportable business segments: North America and Rest of World.
Revenue for the fourth quarter of fiscal year 2014 was $2.5 million, in comparison to $2.4 million for the fourth quarter of fiscal year 2013, an increase of 2%. During the fourth quarter of fiscal 2014, net income from continuing operations was $146,000 or $0.01 per diluted share, compared to a net loss of $143,000 or a loss of $0.02 per share, for the fourth quarter of fiscal year 2013.
Gross margin for the fourth quarter of fiscal year 2014 was 61.6%, down from 69.4% in the fourth quarter of fiscal year 2013. The decrease in gross margin in the fourth quarter of 2014 compared with the prior-year fourth quarter was primarily due to an increase in excess inventory reserves of $290,000. During fiscal year 2014, we experienced a significant slowdown in sales of the iFusion SmartStations, which required us to make an allowance of $284,000 for excess inventory during the fourth quarter. Operating expenses were $1.7 million for the fourth quarter of fiscal year 2014, a decrease of 6% from $1.8 million in the fourth quarter of fiscal year 2013. The year-over-year decrease in operating expenses was driven by our cost control measures and continued focus on operating efficiencies.
In September 2014, the Company reversed a potential liability of $338,000 in connection with a license agreement that never finalized. The accrual was established in 2003 through fiscal year 2011. Based on a recent assessment, management believes that the Company–s liability is highly improbable and therefore has reversed the accrual and reported the reversal as other income in the fourth quarter of fiscal 2014.
For the twelve months ended September 30, 2014, revenue was $9.6 million, compared to $10.8 million for fiscal 2013, a decrease of 11%. For fiscal 2014, net loss from continuing operations was $6.7 million, or a loss of $0.30 per share, compared to a net loss of $1.3 million, or a loss of $0.08 per share, for fiscal 2013. The increase in net loss for 2014 was primarily the result of a one-time non-cash charge related to the write-down of our discontinued operations of $6.7 million in March 2014.
Gross margin was 69.0% for the twelve-month period of fiscal 2014, compared to 69.7% in the comparable period last year. Operating expenses were $7.2 million for fiscal year 2014, a decrease of 9% from $7.9 million for fiscal 2013. The decrease in operating expenses for 2014 was primarily due to the aforementioned focus on operating efficiencies and cost control measures.
The Company had total cash and cash equivalents of $3.8 million from its continuing operations as of September 30, 2014, compared to $2.9 million in the comparable period last year.
“We are pleased to have returned to top-line revenue growth and more importantly achieving profitability in the fiscal fourth quarter. Many of our long term initiatives, including the migration of our solutions to all software and transitioning to a Software as a Service business model, are now beginning to take shape,” said Jeremiah J. Fleming, Chairman of the Board, President and Chief Executive Officer. “As we enter 2015, we remain focused on continued growth and enhancing profitability to the benefit of our shareholders.”
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 . To access the replay, dial (877) 660-6853 (domestic) or (201) 612-7415 (international), account #286 conference ID #13595668. A web archive will be made available at for 90 days following the call–s conclusion.
AltiGen Communications, Inc. (OTCQX: ATGN) is a leading provider of premise and cloud-based IP-PBX and Contact Center solutions headquartered in Silicon Valley, California. 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. 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 .
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 and our ability of achieving growth and profitability. 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.
You must be logged in to post a comment Login