Altigen Technologies Reports Third Quarter Results for Fiscal Year 2025

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Altigen Technologies Reports Third Quarter Results for Fiscal Year 2025

TECHNOLOGY 31.07.2025

NEWARK, CALIFORNIA / ACCESS Newswire / July 31, 2025 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft Cloud Communications Solutions provider, announced today its financial results for the third quarter ended June 30, 2025.

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Key Financial Highlights (3Q 2025 versus 3Q 2024)

Net Revenue increased 7% to $3.52 million
Cloud services revenue decreased 1% to $1.69 million;
Service and Other revenue increased 25% to $1.56 million;
Gross margin increased to 63%, compared with 61%;
GAAP net income was $111 thousand, compared with $62 thousand.

"Our fiscal third quarter marked Altigen's fifth consecutive quarter of profitability," said Jeremiah Fleming, President and CEO of Altigen Technologies. "Compared to the same period last year, we delivered improvements across nearly every key financial metric, demonstrating that our digital transformation strategy is clearly taking hold."

Trended Financial Information (in thousands, except for EPS and percentages)
	Fiscal		Fiscal		Fiscal		Fiscal		Fiscal
	3Q25		2Q25		1Q25		4Q24		3Q24
Total Revenue	$	3,517	$	3,500	$	3,378	$	3,736	$	3,283
Cloud Services	1,685	1,680	1,720	1,680	1,710
Services and Other	1,563	1,552	1,366	1,731	1,249
Legacy Products (Recurring)	269	268	292	325	324
GAAP Operating (Loss) / Income	$	125	$	283	$	75	$	209	$	68
Operating Margin	3.6	%	8.1	%	2.2	%	0.7	%	2.1	%
GAAP Net Income/(Loss)	$	111	$	287	$	87	$	2,079	$	62
Adjusted EBITDA (1)	645	314	291	507	214

Adjusted EBITDA excludes one-time litigation costs and other non-recurring or unusual charges that may arise from time to time that we do not consider to be directly related to core operating performance.

Conference Call

Altigen will be discussing its financial results and outlook on a conference call today at 1:00 p.m. Pacific Time (4:00 p.m. ET). The conference call can be accessed by dialing (888) 506-0062 (domestic) or (973) 528-0011 (international), conference ID #822684. To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #52683. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion.

About Altigen Technologies

Altigen Technologies (OTCQB:ATGN) is focused on driving digital transformation in today's modern workplace.  Our Cloud Communications solutions and Technology Consulting services empower companies of all sizes to elevate customer engagement, increase employee productivity and improve operational efficiency. We're headquartered in Silicon Valley with operations strategically located in five countries spanning three continents. For more information, call 1-888-ALTIGEN or visit our website at www.altigen.com.

Safe Harbor Statement

This press release contains forward‐looking information. The statements are based on reasonable assumptions, beliefs and expectations of management and the Company provides no assurance that actual events will meet management's expectations. Furthermore, the forward-looking statements contained in this press release are based on the Company's views of future events and financial performances which are subject to known and unknown risks and uncertainties including, but not limited to, statements regarding the Company's operational improvements, performance enhancements, AI solution development, and expectations for sustainable growth. There can be no assurances that the Company will achieve the expected results, and actual results may be materially different than expectations and from those stated or implied in forward-looking statements.

Please refer to the Company's most recent Annual Report filed with the OTCQB over-the-counter market for a further discussion of risks and uncertainties. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company does not undertake any obligation to update any forward-looking statements.

Contact:

Altigen Communications, Inc.
Investor Relations - [email protected]

ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except shares and per share data)

June 30,		September 30,
2025		2024
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	3,471	$	2,575
Accounts receivable, net	1,185	1,770
Other current assets	155	185
Total current assets	4,811	4,530

Property and equipment, net	-	-
Operating lease right-of-use assets	68	149
Goodwill	2,725	2,725
Intangible assets, net	1,177	1,242
Capitalized software development cost, net	1,490	1,363
Deferred tax asset	5,638	5,638
Other long-term assets	15	2
Total assets	$	15,924	$	15,649

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	294	$	98
Accrued compensation and benefits	562	593
Accrued expenses	143	446
Deferred consideration - current	744	744
Operating lease liabilities - current	47	104
Deferred revenue - current	538	481
Total current liabilities	2,328	2,466
Deferred consideration - long-term	-	-
Operating lease liabilities - long-term	32	49
Deferred revenue - long-term	95	176
Total liabilities	2,455	2,691

Stockholders' equity:
Common stock	24	24
Treasury stock	-1,579	-1,565
Additional paid-in capital	73,233	73,193
Accumulated deficit	-58,209	-58,694
Total stockholders' equity	13,469	12,958
Total liabilities and stockholders' equity	$	15,924	$	15,649

(1) The information in this column was derived from the Company's audited consolidated financial statements as of and for the year ended September 30, 2024.

ALTIGEN COMMUNICATIONS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2025		2024		2025		2024
Net revenue	$	3,517	$	3,283	$	10,395	$	9,883
Gross profit	2,199	1,994	6,494	6,009
Operating expenses:
Research and development	411	945	1,095	3,383
Selling, general & administrative	1,663	980	4,924	3,141
Operating income (loss)	125	69	475	(515	)
Other expense	(7	)	(5	)	-	(23	)
Interest and other income	15	16	41	37
Net income (loss) before provision for income taxes	133	80	516	(501	)
Income tax benefit (expense)⁽¹⁾	(22	)	(18	)	(32	)	(18	)
Net income (loss)	$	111	$	62	$	484	$	(519	)

Per share data:
Basic	$	0.00	$	0.00	$	0.01	$	(0.02	)
Diluted	$	0.00	$	0.00	$	0.01	$	(0.02	)
Weighted average shares outstanding:
Basic	25,852	24,919	25,601	24,919
Diluted	25,952	26,026	25,952	24,919

ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)

Nine Months Ended
June 30,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$	484	$	(519	)

Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	-	3
Deferred income tax expense	-	-
Amortization of intangible assets	150	137
Amortization of capitalized software	168	311
Adjustment for non-cash operating lease expenses	7
Stock-based compensation	41	42
Changes in operating assets and liabilities:
Accounts receivable and unbilled accounts receivable	573	(277	)
Prepaid expenses and other current assets	42	(51	)
Other long-term assets	(12	)	-
Accounts payable	196	43
Accrued expenses	(585	)	(47	)
Deferred revenue	152	96
Net cash provided by (used in) operating activities	1,216	(262	)

Cash flows from investing activities:
Purchase of intangible assets	(85	)
Capitalized software development costs	(221	)	(377	)
Net cash provided by (used in) investing activities	(306	)	(377	)

Cash flows from financing activities:
Payment related to business acquisition	-	-
Exercise of stock option	(14	)	0
Net cash provided by (used in) financing activities	-	-
Net increase (decrease) in cash and cash equivalents	896	(639	)
Cash and cash equivalents, beginning of year	2,575	2,641
Cash and cash equivalents, end of year	$	3,471	$	2,002

ALTIGEN COMMUNICATIONS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)

Three Months Ended						Nine Months Ended
June 30,						June 30,
2025		2024		2025		2024
Reconciliation of GAAP to Non-GAAP Gross Profit:
GAAP gross profit	$	2,199	$	1,994	$	6,494	$	6,009
Amortization of capitalized software	87	70	158	279
Amortization of acquired customer relationships	40	40	120	120
Non-GAAP gross profit	$	2,326	$	2,104	$	6,772	$	6,408

Reconciliation of GAAP to Non-GAAP Expenses:
GAAP operating expenses	$	2,074	$	1,925	$	3,937	$	6,524
Depreciation and amortization	-	1	-	3
Amortization of capitalized software	0	9	11	32
Amortization of intangible assets	10	6	30	18
Stock-based compensation	9	14	41	42
Non-GAAP operating expenses	$	2,055	$	1,895	$	3,855	$	6,429

Reconciliation of GAAP to Non-GAAP Net Income:
GAAP net profit / (loss)	$	110	$	62	$	484	$	(519	)
Depreciation and amortization	-	1	-	3
Amortization of capitalized software	87	79	169	311
Amortization of intangible assets	50	46	150	138
Stock-based compensation	9	14	41	42
Deferred tax asset valuation allowance	-	-	-	-
Non-GAAP net income	$	256	$	202	$	844	$	(25	)

Per share data:
Basic	$	0.00	$	0.01	$	0.01	$	0.00
Diluted	$	0.00	$	0.01	$	0.01	$	0.00
Weighted average shares outstanding:
Basic	25,852	24,919	25,601	24,919
Diluted	25,952	26,026	25,952	24,919

Non-GAAP Financial Measures

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis. These non-GAAP financial measures exclude stock-based compensation expense, amortization of acquired intangible assets, depreciation and amortization expenses, acquisition-related costs, change in deferred tax asset valuation allowance, litigation costs and other non-recurring or unusual charges or benefits that may arise from time to time that we do not consider to be directly related to core operating performance. We use non-GAAP measures to evaluate the core operating performance of our business and to perform financial planning. Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating: (i) the comparability of our on-going operating results over the periods presented and (ii) the ability to identify trends in our underlying business.

SOURCE: Altigen Technologies

View the original press release on ACCESS Newswire

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Altigen Technologies Reports Third Quarter Results for Fiscal Year 2025

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