SAN JOSE, CA — (Marketwired) — 12/02/15 — 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, 2015.
“2015 reflected the results of our efforts to transition from hardware and one-time license revenues to Software as a Service and annual recurring revenues, which delivered increased profitably and capital returns to our shareholders,” said Jeremiah J. Fleming, Chairman, President and Chief Executive Officer of AltiGen. “We will continue to focus on driving the business in this direction in 2016 and beyond.”
Revenue for the fourth quarter of fiscal year 2015 was $2.4 million, in comparison to $2.5 million in the same quarter last year. Gross margin rates improved substantially in the fourth quarter of fiscal year 2015, rising to 81.5% compared to 61.6% for the fourth quarter last year. The increase in gross margin was primarily attributable to (i) increased sales of higher margin products, such as software and service related product lines and (ii) in the fourth quarter of fiscal year 2014, a one-time adjustment of $284,000 was recorded for excess inventory related to the iFusion SmartStations, which negatively impacted our gross margin by approximately 8.4 points.
Net income for the fourth quarter of fiscal year 2015 was $209,000, or $0.01 per diluted share, compared with net income of $146,000, or $0.01 per diluted share in the fourth quarter one year ago. Operating expenses were $1.7 million for both fourth quarter of fiscal year 2015 and fourth quarter of fiscal year 2014.
For the twelve months ended September 30, 2015, revenue was $9.8 million, compared to $9.6 million for fiscal 2014, an increase of 2% on a year-over-year basis. Gross margin increased 11.3 points to 80.3% for the twelve-month period of fiscal 2015, compared to 69.0% in the comparable period last year. The increase in gross margin for 2015 was primarily the result of the aforementioned increased sales of higher margin products.
Net income for fiscal year 2015 was $644,000, or $0.03 per diluted share, compared to a net loss of $270,000, or $0.04 per share, in the year-ago period. The increase was driven by (i) a modest increase in revenue and (ii) a decrease of 35% in cost of goods sold, which was primarily driven by the positive impact of stronger software and service related product lines. Our product mix favors software and service, and we continue to see improved margins as we experience a favorable revenue shift in these product lines. Operating expenses totaled $7.2 million for both fiscal year 2015 and 2014.
The Company had total cash and cash equivalents of $4.6 million from its continuing operations as of September 30, 2015, compared to $3.8 million in the comparable period last year.
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 #13624988. 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. With thousands of 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. 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 our ability to continue to maintain profitability and increase shareholder value from our ongoing efforts in transitioning from hardware and one-time license revenues to Software as a Service and annual recurring revenues. 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, 2014. 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.
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